Published: Monday October 29, 2012 MYT 3:24:00 PM
Updated: Monday October 29, 2012 MYT 3:30:38 PM
UUMís application to suspend RM3.7mil court judgment rejected
ALOR SETAR: Universiti Utara Malaysia's (UUM) application to suspend an execution of judgment has been rejected and the university was ordered to pay more than RM3.7mil to KIC Management Sdn Bhd for breaching an agreement to outsource a masters programme to the company.
Counsel C.V Devan, representing the company, told Bernama the decision was made by High Court judge Datuk Zakiah Kassim in her chambers here Monday.
"The application to suspend the execution of judgment was turned down with cost although the Appeals Court had not set a date for the appeal.
"On May 17, 2012, UUM was told to pay this amount in 14 days but they appealed for suspension until a decision was made by the Appeals Court," he said.
In the claims dated Aug 8, 2010, KIC Management claimed UUM had terminated an MoA with the company to carry out the Master of Business Administration (MBA) programme starting June 1, 2009.
The company claimed that according to the MoA signed with UUM on Sept 1, 2008, UUM agreed to outsource the MBA programme to KIC Management whereby the company would provide the infrastructure and programme participants at a faculty owned by the company and/or its representative in Kulim, Kedah.
In the agreement, UUM agreed that KIC Management would continue to conduct the MBA programme for five years from Sept 1, 2008 to Aug 31, 2013.
However, UUM, through a letter dated May 18, 2009, ended the agreement from June 1 of the same year without complying with the terms stated in the agreement.
KIC Management stated that termination of the contract was premature and violated two clauses, which were the contract could be terminated by any party by giving at least six months written notice, and the MoA can only be terminated after the pogramme's new student intake.
KIC Management said UUM's action caused the company to incur losses of RM424,860 in fees for students who have not completed their programme and RM3.27mil for loss of income for the remainder of the agreement from June 1, 2009 to Aug 31, 2013.
The company is demanding for RM424,860 for compensation of fees lost, RM3.27mil for loss of income, statutory benefits at eight percent a year for the two claims and other relief ordered by the court.
UUM was represented by counsel Nadzarin Nordin. - Bernama