Suit Filed Over Sept 23 Termination Letter For Kvdt2 Contract

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Dhaya Maju LTAT has filed another lawsuit linked to the purported termination of its contract with Putrajaya over the Klang Valley Double Tracking (KVDT2) rail project.
The company this time seeks to invalidate the alleged termination of the contract via a letter dated Sept 23.
On Sept 25, the Kuala Lumpur High Court was informed by senior federal counsel Nik Mohd Noor Nik Kar that the government had issued the termination letter to Dhaya Maju the day before (Sept 24).
The court was informed of this during proceedings involving Dhaya Maju’s earlier and ongoing lawsuit against the government and Transport Minister Wee Ka Siong to prevent the termination of the KVDT2 contract. This earlier legal action was filed on Sept 7.
According to cause papers sighted by Malaysiakini today, the company, through law firm Skrine, filed the new writ of summons at the Kuala Lumpur High Court Registry on Oct 27.
The writ listed the government of Malaysia, Wee, engineering consultancy firm Opus Consultants (M) Sdn Bhd, and Keretapi Tanah Melayu Berhad (KTMB), as defendants.
The company is seeking, among others, a declaration that the purported termination of the contract via the Sept 23 letter amounted to a breach of contract and was unlawful.
The plaintiff seeks a declaration that the purported termination of the contract via the letter without providing 30 days notice was invalid, unlawful, and wrong in law.
Dhaya Maju is seeking a declaration that the contract was binding and continues to be binding on the government who is the first defendant, among others.
According to the Statement of Claim, the plaintiff alleged that any termination of the contract via the Sept 23 letter is unlawful as the company has not received the letter.
“The purported Termination Letter expressly provides that the termination is only effective upon receipt and to date, the First Defendant (government) has not duly served the Termination Letter (on the plaintiff).
“In addition, the plaintiff contends that as the First Defendant’s Termination Letter was not duly sent nor received by the plaintiff, any termination of the revised contract by the First Defendant is unlawful,” Dhaya Maju claimed via the Statement of Claim filed on Oct 27.


According to the Statement of Claim, Opus Consultants was alleged to have prepared a report stating that the cost of the KVDT2 project was RM3.398 billion, and that the report was allegedly referred to by Wee (photo) in his press release on Aug 28.
On Aug 28, Wee announced that the government will reopen the tender for the KVDT2 rail project, alleging that the RM4.475 billion price tag for the project was too high, despite cost-cutting measures made by the previous Pakatan Harapan administration.
Dhaya Maju disputed that Opus Consultants could have concluded the project to cost RM3.398 billion based on the scope of work stated in the original contract, as Wee allegedly said in the press release.
“However, the report was prepared based on general information. As such, it would not have been possible for the Third Defendant (Opus Consultants) to prepare the Opus Report based on the original scope of work,” the plaintiff alleged.
The Statement of Claim alleged that on Sept 29, KTMB had informed Dhaya Maju that in accordance with the Sept 23 termination letter, that the plaintiff’s Certificate of Site Possession, as well as the Licence to Occupy over the KVDT2 site, have been revoked.
“The plaintiff informed the Fourth Defendant (KTMB) that the termination letter is ineffective because it has not received the same and that the purported termination by the First Defendant (government) is unlawful.
“Therefore, the Revocation of Licence to Occupy which is based on the Termination Letter is thus entirely misconceived, wrongful, and/or premature,” Dhaya Maju alleged.


Meanwhile, on Oct 27, Dhaya Maju also filed an application for an interlocutory injunction to prevent KTMB from revoking the plaintiff’s Licence to Occupy the KVDT2 site, pending disposal of the main legal action.
According to the application sighted by Malaysiakini today, the plaintiff seeks the interlocutory injunction to prevent KTMB from entering the KVDT2 project site.
The temporary injunction is also to prevent KTMB from directing the company to stop work and vacate the site.
The project came into the spotlight after Finance Minister Tengku Zafrul Abdul Aziz revealed details of the 101 contracts that were purportedly awarded through a direct negotiation process during the time Pakatan Harapan was in power.
KVDT2 was the largest contract in terms of value on the list. - Mkini

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