PSM LOSES BID TO STRIKE OUT SUIT

High Court finds that case has merits that need to go for full trial

MALAYSIA Stadium Corporation (PSM) has lost its bid to strike out a RM41.6 million suit by KL Karnival Sdn Bhd over breach of a lease contract on a piece of land at Taman Sukan Extreme for the Bukit Jalil

Stadium carnival.

Lawyer Adnan Seman, who represented KL Karnival, said High Court judge Ahmad Bache dismissed PSM’s application after finding that there were merits in the suit that needed to be heard by the court.

“The judge found that the case has merits that need to go for full trial,” he said after the matter came up for case management in chambers yesterday.

He said the court had fixed tomorrow for case management.

Adnan said the application to strike out the suit by PSM on Sept 27 last year was made on grounds that it was a statutory body under the Perbadanan Stadium Malaysia Act 2010 and was therefore protected from any law proceedings under Section 35 of the act.

Lawyer Priscilla Tan who acted for PSM was present.

On July 5 last year, KL Carnival had, through its managing director Mohd Rustam Roshandin, filed the suit claiming that PSM had leased a piece of land measuring 123,000 sq ft at Taman Sukan Extreme for three years, to the end on Dec 31, 2020 for the carnival.

In the statement of claim, KL Carnival stated that it had spent RM3 million to carry out land work at the site and invested a lot on advertisements in newspapers and magazines, as well as on social media to promote the event.

It also claimed that it had opened up a centre for registration, with 430 tent hawkers and 210 container hawkers signing up and paying for their spots.

However, the carnival organiser claimed that in Jan 2017, PSM wanted to reclaim a portion of the land for use as a car park.

KL Karnival is claiming RM41.6 million in damages, as well as interests, costs and other reliefs deemed fit by the court.