Melaka Gateway dispute: Apex court hearing adjourned as parties pursue out-of-court settlement

KUALA LUMPUR (Feb 10): The Federal Court had on Wednesday (Feb 9) adjourned its hearing of the Melaka Gateway mixed development dispute involving its developer KAJ Development Sdn Bhd and the Melaka state government as both parties are pursuing an out-of-court settlement following a disagreement on the termination of the state government's agreement with KAJ for the project.

A three-member Federal Court bench had on Wednesday granted KAJ an adjournment till May 19, 2022 to hear the company's application for permission to appeal against the Court of Appeal's decision in 2021 to reject its application for permission to initiate a judicial review to challenge the Melaka state government’s move to terminate its agreement with KAJ involving land reclamation with the Straits of Malacca for the Melaka Gateway project.

The apex court bench comprised Court of Appeal president Tan Sri Rohana Yusuf and Federal Court judges Datuk Abdul Rahman Sebli and Datuk Mary Lim Thiam Suan.

Representing KAJ on Wednesday was lawyer Datuk Loh Siew Cheang while senior federal counsel Ahmad Hanir Hambaly represented the Melaka state government.

According to Ahmad Hanir and Loh, KAJ had during the Federal Court hearing on Wednesday sought the court's permission to adjourn the hearing of KAJ's application for permission to appeal against the Court of Appeal's decision as both KAJ and the Melaka state government are pursuing an out-of-court settlement in the dispute.

Loh told theedgemarkets.com, "The hearing was adjourned as the parties are settling the matter amicably."

"This was confirmed by Ahmad Hanir. Three months' adjournment was granted,” Loh said.

Prior to the Federal Court hearing on Wednesday, KAJ had on Dec 4, 2020 filed the judicial review permission application at the High Court after KAJ's agreement with the Melaka state government was aborted via a notice of termination dated Nov 11, 2020.

It was reported that the High Court had on Feb 17, 2021 rejected KAJ's application for permission to initiate the judicial review to challenge the Melaka state government’s move to terminate the agreement.

The Court of Appeal had in April 2021 upheld the High Court's decision.

KAJ, which entered into the agreement with the Melaka state government on Oct 4, 2017 for land reclamation within the Straits of Malacca for the Melaka Gateway project, had earlier sought court declarations that the termination notice is void and that the termination is illegal.

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