Ex-MB applies to strike out Puncak Niaga suit

SHAH ALAM: Selangor former Menteri Besar Tan Sri Abdul Khalid Ibrahim has filed an application to strike out a suit filed by Puncak Niaga Holdings Bhd (Puncak Niaga) against him and two others for damages in regard to restructuring of the water industry in the state.

His lawyer New Sin Yew told reporters when met today after case management of the civil action before High Court judge Datuk Akhtar Tahir in chambers, that the notice of application was filed on Monday.

Puncak Niaga was represented by counsel Lau Mark Chi-Ming while Selangor Menteri Besar Datuk Seri Mohamed Azmin Ali who was also named as a defendant in the suit, was represented by counsel Latheefa Koya.

New said the judge fixed Dec 12 for Puncak Niaga to file its affidavit in reply, and Jan 23 next year for decision or clarification regarding the application.

He said the court also set three days from March 28 next year for trial and Feb 12 next year for case management.

In his application, Abdul Khalid said among others that he believed the plaintiff’s action against him was an allegation of misfeasance in public.

The former menteri besar claimed that at all material times, he was not a public official under relevant laws such as the Government Proceedings Act 1956, Interpretation Acts 1948 & 1967, Selangor State Constitution 1959 and the Federal Constitution.

He argued that the plaintiff’s legal proceedings against him was without reasonable cause, frivolous or vexatious and an abuse of the process of the court as he had ceased serving as Selangor menteri besar from Sept 23, 2014.

He pointed out that Puncak Niaga filed the case only after a lapse of more than 36 months following his resignation as menteri besar.

Aside from that, he said the plaintiff was bound at all times by the terms of the Sale and Purchase Agreement referred to in the statement of claim and that he was neither a party not privy to the agreement.

“I do believe that the plaintiff cannot use this action to avoid its responsibilities under the Sale and Purchase Agreement. It should be emphasised here that the plaintiff did not demand for the agreement to be avoided or void under the provisions of the Contracts Act 1960.

“None of the pleadings in the statement of claim disclosed any circumstances to show that the plaintiff was under duress or other reasons to terminate the sale and purchase agreement under the Contract Act 1960,” Abdul Khalid said in his application.

In a statement to Bursa Malaysia on Nov 21, Puncak Niaga said the company’s lawyer served the summons and statement of claim to Abdul Khalid, Mohamed Azmin and Selangor State Government on Oct 27.

The plaintiff in its statement of claim said the Selangor state government was also a defendant as it was responsible for the actions of Abdul Khalid and Mohamed Azmin who it alleged abused their power.

It alleges that Abdul Khalid and Mohamed Azmin abused their power by threatening to cause the Federal Government to invoke the Water Services Industry Act (WSIA) 2006 and force the reacquisition of the water services industry in Selangor.

Puncak Niaga is seeking damages, interest and costs on the difference in value of PNSB Water Sdn Bhd (formerly known as Puncak Niaga (M) Sdn Bhd) and SYABAS at between RM2.08 billion and RM2.35 billion.

It is also claiming damages, interest and costs for alleged loss of business opportunities locally and abroad, amounting to RM13.5 billion. - Bernama