As expected, Tiong's Kuala Dimensi gets PKA suit struck out

The Shah Alam High Court has struck out the Port Klang Authority's (PKA) suit against Kuala Dimensi Sdn Bhd (KDSB) to rectify a sales and purchase agreement (S&P) for 1,000 acres (404.68ha) of land worth RM1.88bil for the Port Klang Free Zone (PKFZ) project signed in 2002.

Justice Datuk Zaleha Yusof, after hearing submissions of both parties in her chambers, ruled that she agreed with arguments put forward by KDSB that there were no mutual mistakes in the terms of agreement entered by both parties (PKA and KDSB) as contended by the plaintiff.

KDSB's counsel Indran Navaratnam said the defendant (KDSB) had submitted that one of the clauses in the agreement had clearly stated that the agreement superceded all the previous negotiations between both parties.

He said the plaintiff also had argued that there was no evidence that a letter by the Government evaluater over evaluation of each square feet of the said land (1,000 acres) was given to KDSB as contended by the plaintiff.

In the suit filed in Sept 2009, besides seeking rectification of the agreement, the plaintiff also wanted a refund on interest already paid to KDSB.

PKA contended that mistakes and fraud were involved in the agreement and that the value of each square feet of the land should be at RM21 and not RM25.

PKA also claimed the purchase price was already inclusive of interest as stated in the agreement and that it would be paid over 15 years.

PKA counsel Cindy Khaw, when contacted, said the plaintiff would appeal against the court's ruling and wanted the matter to go for full trial.

On Sept 25, 2009, PKA had also filed a RM920mil suit against KDSB, the turnkey contractor for PKFZ, and the project consultant, BTA Architect, in connection with key development and supplemental agreements signed between February 2003 and November 2006.

The suit filed for relief, including for rescission of all the development agreements, and a declaration that KDSB was only entitled to be paid the reasonable value of work properly done.

PKA is also seeking a declaration that KDSB is not entitled to, and PKA is not obliged to pay KDSB, claims totalling RM836,758,459.92 which KDSB had made for the monsoon drain and water supply works, preliminaries, professional fees and variation works respectively under the development agreements.

KDSB was appointed by PKA in 2003 to develop the PKFZ on a 405ha site adjacent to the North Port in Klang. It is controlled by Tiong King Sing, the MP for Bintulu.

- Bernama