PUTRAJAYA: Two former board members of 1Malaysia Development Berhad (1MDB) will remain as third parties in its US$6.59bil lawsuit filed against former chairman Tan Sri Mohd Irwan Serigar Abdullah and former chief executive officer Arul Kanda Kandasamy.
This follows the decision by the Federal Court's three-member panel on Monday (Jan 6) dismissing applications for leave to appeal brought by the former board members, Datuk Kamal Mohd Ali and Datuk Seri Norazman Ayob.
The duo had sought leave to appeal the appellate court’s decision that ordered for their inclusion as third parties in the 1MDB suit.
The Federal Court panel comprised Chief Judge of Sabah and Sarawak Justice Tan Sri Abdul Rahman Sebli and Federal Court judges Justices Datuk Nordin Hassan and Datuk Abdul Karim Abdul Jalil.
Delivering the court’s unanimous decision, Justice Abdul Rahman said it is not a fit and proper case for the court to exercise its discretion to grant leave under Section 96 of the Courts of Judicature Act 1964. He ordered the duo to pay RM30,000 in legal costs.
On Nov 6, the Court of Appeal allowed Irwan’s appeal to include three individuals, including Kamal and Norazman, as third parties in the suit. This led to Kamal and Norazman applying for leave to appeal in the Federal Court.
Former 1MDB chief financial officer Azmi Tahir was also brought in as a third party in the suit but he did not apply for leave to appeal at the Federal Court. This means he also remains as a third party.
On May 30, Irwan filed an ex-parte application against six individuals seeking indemnity or contribution in the event he is found liable for the lawsuit filed by 1MDB against him and Arul Kanda.
On Sept 6, Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan granted the application of the six individuals, including Kamal, Norazman Ayob and Azmi, to strike out the third-party notice filed by Irwan.
The other three individuals were former chairman Tan Sri Lodin Wok Kamaruddin; former chairman Datuk Seri Asri Hamidin @ Hamidon; and current chairman Datuk Seri Johan Mahmood Merican.
At the Court of Appeal, Irwan did not pursue his appeals against the other three individuals.
In May 2021, 1MDB filed a lawsuit against Irwan and Arul Kanda, accusing them of breach of trust and conspiracy that resulted in losses of US$1.83bil related to the company's investment in 1MDB-Petrosaudi Ltd, which was later converted into the Brazen Sky Limited investment, said to be recoverable from the Bridge Global Fund.
It also alleged that both defendants committed breach of trust and conspiracy by misappropriating US$3.5bil in company funds paid to Aabar Investments and US$1.265bil paid to International Petroleum Investment Company on May 9, 2017.
It claimed that Irwan colluded with Arul Kanda to execute an extension of an employment agreement, paying a substantial amount of RM2,905,200 to Arul Kanda, disregarding 1MDB's interests, which resulted in losses and damages to the company.
Consequently, 1MDB is seeking US$6.59bil in damages from both defendants for these violations, and an additional RM2.9mil from Irwan related to the extension of the employment agreement.
In Monday’s proceedings before the Federal Court, lawyers Lavinia Kumaraendran and Mavin Thillainathan represented Irwan while lawyer Razlan Hadri Zulkifli represented Kamal and Norazman.
Lavinia told the media that the trial at the High Court is set to resume on Jan 13, with Arul Kanda expected to take the stand. – Bernama
