Yayasan S’gor told to pay up in dispute

KUALA LUMPUR: Yayasan Selangor has been ordered to pay RM24mil to an aviation and property development company in relation to a civil dispute over the cancellation of a joint venture agreement.

The judgment on assessment of damages was delivered by High Court deputy registrar Erry Shahriman Nor Aripin last month.

When contacted yesterday, the company’s lawyer James Joshua Paulraj said they had sent a notice to Yayasan Selangor asking it to pay the amount within 21 days from their notice dated April 18.

“If Yayasan Selangor fails to do so, we may file a winding-up petition against the foundation,” he said.

He, however, confirmed that an appeal has been filed by Yayasan Selangor over the award.

According to the written judgment by Erry Shahriman dated March 14, Yayasan Selangor was to pay RM24,872,021 to Aviation Development Corporation (M) Sdn Bhd, in damages, 5% in interests over the sum and RM10,000 in costs.

The court papers revealed that Yayasan Selangor had filed a suit at the High Court here against the company, seeking to rescind the joint venture agreement dated Aug 8, 2007.

The foundation and the company entered a joint venture agreement for the purpose of jointly developing an airpark on Yayasan Selangor’s land in Ulu Bernam, Ulu Selangor, measuring about 88.09ha.

Pursuant to the agreement, the foundation allowed the company to take vacant possession of the land on Jan 16, 2007, causing the company to commence with the development of an airpark equipped with an airstrip as well as infrastructure and facilities required to park, maintain and operate general aviation aircraft.

After the essential development was complete, the company commenced operations on the land.

The foundation later filed the suit against the company contending that it, among others, had failed and neglected to obtain the necessary approvals from the authorities.