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Court dismisses Umno’s appeal to strike out SRC suit for RM16 million

A three-man panel says there is no merit to Umno's appeal.

Bernama
2 minute read
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Umno today failed in its appeal to strike out the suit filed by SRC International and two of its subsidiaries to reclaim RM16 million.
Umno today failed in its appeal to strike out the suit filed by SRC International and two of its subsidiaries to reclaim RM16 million.

The Court of Appeal in Putrajaya today dismissed Umno’s appeal to strike out a lawsuit filed against it by SRC International Sdn Bhd and two of its subsidiaries to reclaim RM16 million said to have been wrongfully transferred by the company to the party.

A three-member panel comprising justices Hadhariah Syed Ismail, Abu Bakar Jais and Mariana Yahya found that there was no merit to Umno’s appeal.

“This is not a plain and obvious case for striking out,” said Hadhariah who chaired the panel.

She said there were many issues raised in the pleadings including breach of fiduciary duty, breach of trust, misappropriation of trust money, and fraudulent use of trust money which could only be determined through a full trial.

“All the respondents (SRC International, Gandingan Mentari Sdn Bhd and Jendela Pinggiran Sdn Bhd) are asking for is the right to be heard,” she said.

Hadhariah also affirmed the High Court’s dismissal of Umno’s application to strike out the suit on Nov 10 last year.

Meanwhile, the panel also struck out Umno’s appeal against the High Court’s decision allowing SRC International and its subsidiaries to amend the names of the defendants in their writ of summons and statement of claim after Umno’s lawyer Shahrul Fazli Kamaruzaman informed the court of the withdrawal of the appeal on that decision.

In their writ of summons, SRC International, Gandingan Mentari and Jendela Pinggiran claimed that Umno knew, or ought to have known, that the money belonged to SRC International and that it had had no basis to receive the funds.

The companies initially filed the suit naming Umno, which they sued through its president Ahmad Zahid Hamidi and secretary-general Ahmad Maslan as defendants.

The High Court, however, allowed the companies’ application to amend the defendants’ names in the writ of summons and statement of claim, replacing Zahid and Maslan with Umno working secretary Mohd Sumali Reduan.

On May 10, 2021, the finance ministry confirmed that 1MDB and its subsidiary, SRC International, had filed 22 civil suits seeking assets of over RM96.6 billion, including RM300 million from various local parties.

It said the suits were filed on May 7 last year, six by 1MDB and 16 by SRC International.

Lawyer Nur Syafinaz Vani Abdullah represented SRC International, Gandingan Mentari and Jendela Pinggiran.