Gold traders lose suit against Gen­neva

Plain­tiffs failed to prove breach of con­tract, says court

The Star Malaysia - - MATION - By M. MAGESWARI [email protected]­tar.com.my

I find that the plain­tiffs failed to par­tic­u­larise acts that con­trib­uted to breach of con­tract. Jus­tice Mohd Zaki Ab­dul Wa­hab

KUALA LUMPUR: Some 1,065 gold traders who sued gold in­vest­ment com­pany Gen­neva Malaysia Sdn Bhd for RM146mil, lost in their claim of breach of con­tract.

Gold traders Mur­shid Meam Ghouse Musa Meam and 1,064 oth­ers had claimed for gold prod­ucts and monies which they said were con­trac­tu­ally owed to them by Gen­neva Malaysia.

Yes­ter­day, High Court judge Jus­tice Mohd Zaki Ab­dul Wa­hab dis­missed the traders’ law­suit on grounds that they had failed to par­tic­u­larise their claim.

“I find that the plain­tiffs failed to par­tic­u­larise acts that con­trib­uted to breach of con­tract,” he said.

He said 39 wit­nesses had been called to tes­tify in the trial.

“Of the fig­ure, 37 are plain­tiffs but none could give ev­i­dence for the other plain­tiffs. I find their ev­i­dence failed to prove their case,” he said.

Gen­neva Malaysia, which was rep­re­sented by lawyer Har­gopal Singh, did not call any wit­nesses on grounds that it had no case to an­swer.

In the state­ment of claim, the plain­tiffs said they en­tered into three types of agree­ments with Gen­neva Malaysia in 2012 for gold trad­ing.

They said Gen­neva Malaysia did not pro­vide the gold prod­ucts pur­chased by them and also did not pay the sale price to them, caus­ing them to suf­fer over RM146mil in to­tal losses.

In the suit filed on June 30, 2014 the plain­tiffs sought, among oth­ers, for the phys­i­cal gold to be re­turned to them and to be paid dam­ages, costs and in­ter­ests over their losses.

The gold traders had also named Bank Ne­gara Malaysia (BNM) as the co-de­fen­dant for an­cil­lary or­ders to re­lease the gold and monies which were be­ing held as prop­erty on trust by the cen­tral bank fol­low­ing a raid and seizure at the com­pany in 2012.

How­ever, on Nov 21, 2014, they with­drew their claim against BNM.

BNM coun­sel Rid­uan Baba said the gold traders agreed to with­draw their suit sub­ject to any court or­der in re­spect of the seized items.

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