KL Tower RM1b suit: High Court allows trial against govt, Fahmi; strikes out case against new concessionaire firms

• Roz Mawar said that although Hydroshoppe and Menara KL tried to amend their lawsuit, they still failed to clearly explain their claims against the three companies.

KUALA LUMPUR (July 15): The High Court has ruled that Hydroshoppe Sdn Bhd and Menara Kuala Lumpur Sdn Bhd’s RM1 billion lawsuit against Communications Minister Datuk Fahmi Fadzil and the government over the award of the KL Tower concession will go to trial.

The court allowed the KL Tower concession holder, the joint venture company LSH Service Master Sdn Bhd and its owners LSH Best Builders Sdn Bhd and Service Master (M) Sdn Bhd, to be taken out of the lawsuit.

Judge Roz Mawar Rozain ruled that there are issues in Hydroshoppe and Menara KL’s lawsuit against the government and the minister that need to be heard in an open court trial with oral evidence.

“There are triable issues that are to be decided via viva voce (oral) evidence, especially in issues pertaining to a purported oral agreement between the government and the plaintiffs (the two companies) in 2022,” she said in ordering the matter to proceed to trial.

Meanwhile, the judge allowed LSH Service Master, LSH Best Builders and Service Master to be removed from the case, saying Hydroshoppe and Menara KL did not clearly state their claims of breach of contract, dishonest help or receiving money wrongly against the three companies.

LSH Service Master and LSH Best Builders are subsidiaries of Lim Seong Hai Capital Bhd (KL:LSH).

Roz Mawar said that although Hydroshoppe and Menara KL tried to amend their lawsuit, they still failed to clearly explain their claims against the three companies.

“Even in their original statement of claim, Hydroshoppe and its subsidiary Menara KL have failed to plead the three areas of breach of contract, dishonest assistance and knowing receipt by the government and minister to support their claim in the suit.

“For these reasons, the court allowed the three defendants' application to strike out the suit by Hydroshoppe and Menara KL,” she said.

Roz Mawar said the inadequacy of the particulars in the original statement of claim and the amended pleadings does not cure Hydroshoppe and Menara KL's claim, as what is alleged are mere assertions.

The material events, the judge said, were not said and there are no specific dates, documents or meetings to support the plaintiff's claim.

“Hence, the claim made by the plaintiffs is plainly unsustainable and this court is inclined to allow the three companies' striking out applications as they are not made aware of the case against them that they are required to answer,” the judge added.

The judge ordered Hydroshoppe and Menara KL to pay RM20,000 in costs to the three companies.

The government, minister and the three companies had filed separate applications to strike out the suit filed in March by Hydroshoppe and Menara KL against them.

Nov 3 for case management

The court set Nov 3 for case management in Hydroshoppe and Menara KL’s lawsuit against the government and Fahmi.

Roz Mawar directed Hydroshoppe and Menara KL lawyers, led by Vinayak Sri Ram, and senior federal counsel Ahmad Hanir Hambaly @ Arwi to prepare the necessary documents for the matter to go to trial.

Counsel Datuk Malik Imtiaz Sarwar, who appeared with Datuk Arthur Wang for LSH Service Master and LSH Best Builders and Service Master, said they have a counterclaim against the plaintiffs and would make an application for a summary judgment against them after the success of their striking out application.

Roz Mawar asked Malik and Wang to file the necessary documents within two weeks.

Prior to this, it was reported that Roz Mawar had dismissed Hydroshoppe and Menara KL’s application for an interim injunction and committal proceedings against the defendants following their move into the premises on April 1.

In their suit filed on March 27, Hydroshoppe and Menara KL claim that LSH Capital and its units had induced a breach of a contract that the plaintiffs had agreed to with the government in an Aug 1, 2022 meeting.

They claim that LSH Capital and its units had committed dishonest assistance and want the award of the KL Tower concession to LSH Service Master to be declared void and unlawful.

They also claim an estimated RM1 billion in damages and for the concession of the iconic Kuala Lumpur landmark building to be transferred back to them.

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