New KVDT2 tenders on hold pending Dhaya Maju LTAT appeal

Court grants ad interim injunction in favour of Dhaya Maju LTAT until July 26, which is fixed for the hearing of the company’s Erinford injunction

by RAHIMI YUNUS / pic credit:

THE government is restrained from calling for new tenders for the Klang Valley Double Tracking Phase 2 (KVDT2) project following the court’s decision of extending the ad interim injunction for Dhaya Maju LTAT Sdn Bhd until July 26, 2021, over its contract termination dispute.

The Court of Appeal Judge Datuk Seri Kamaludin Md Said granted an ad interim injunction in favour of Dhaya Maju LTAT until July 26, which is fixed for the hearing of the company’s Erinford injunction.

This means the KVDT2 status quo remains, and the government and Keretapi Tanah Melayu Bhd (KTMB) cannot instruct Dhaya Maju LTAT to stop work on the project.

“The court would only hear our Erinford injunction application on July 26. It is important for an ad interim order to be granted, otherwise the application will be rendered nugatory,” Dhaya Maju LTAT’s counsel Ashok Ranai said in the proceedings in Putrajaya yesterday.

The counsel also said senior federal counsel Asliza Ali, who is representing the government and Transport Minister Datuk Seri Dr Wee Ka Siong, has no objection to their application for an ad interim order.

In a statement, Dhaya Maju LTAT said KTMB’s counsel raised objections, but the court viewed that these arguments are to be made in the hearing itself.

An Erinford injunction is a specific court order to prevent or compel a party to do a specific act to preserve the status quo pending the conclusion of an appeal.

Dhaya Maju LTAT has streamlined its two civil suits into one action for consistency.

“We will essentially be dealing with all unresolved issues and remaining claims in a single suit before the High Court.

“Dhaya Maju LTAT strongly believes in our right to defend the sanctity of the contract the government had entered into with Dhaya Maju LTAT for the KVDT2 project,” the company said in a statement yesterday.

The contractor said they are ready to resume the KVDT2 project and looking forward to the government’s forthcoming decision on the settlement agreement to allow the company to continue and complete the project.

On Oct 27 last year, Dhaya Maju LTAT filed a suit against the government, Wee, KTMB and Opus Consultants (M) Sdn Bhd over the KVDT2 contract termination.

The company claimed, among others, that the official notice of termination had not been served on the company until now, and it was completely unaware of the termination until it was announced by Wee through a media statement.

The company, incorporated on June 5, 2017, as a joint venture between Dhaya Maju Infrastructure (Asia) Sdn Bhd and Lembaga Tabung Angkatan Tentera (LTAT), sought a declaration the decision to terminate the contract was null and void.

The dispute began after Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz released a list of 101 projects worth RM6.61 billion awarded through direct negotiations during the Pakatan Harapan administration, including the RM4.48 billion jobs awarded to Dhaya Maju LTAT.