KL Tower ops continue as usual despite ad interim injunction setback, say Hydroshoppe and Menara Kuala Lumpur

• They stressed that the High Court's dismissal on Tuesday is not final, as the matter is still pending the hearing of an interim injunction scheduled for June 9.

KUALA LUMPUR (April 8): The operations and management of the KL Tower will continue as usual, said Menara Kuala Lumpur Sdn Bhd and its parent Hydroshoppe Sdn Bhd, despite the court's dismissal of their ad interim injunction application to halt the award of the iconic landmark's concession to a subsidiary of Lim Seong Hai Capital Bhd (KL:LSH).

They stressed that the High Court's dismissal on Tuesday is not final, as the matter is still pending the hearing of an interim injunction scheduled for June 9, following a lawsuit they filed against LSH Capital's subsidiaries LSH Best Builders Sdn Bhd and LSH Service Master Sdn Bhd, as well as the Malaysian government, against the award of the concession.

Also named as defendants in the lawsuit were the Ministry of Communications and its Minister Datuk Fahmi Fadzil, and LSH Capital's joint-venture partner Service Master (M) Sdn Bhd, which holds 30% in LSH Service Master.

"It is important to stress that this ad interim decision is not final, and the court has not ordered any transfer of management to any third party, including LSH Service Master Sdn Bhd, nor has it directed the handover of the site or the concession," said Menara Kuala Lumpur managing director Datuk Abdul Hamid Shaikh in a statement.

"Therefore, we are of the view that any attempt to take over the operations of KL Tower prior to a final court decision is premature and inappropriate. We firmly stand by the position that the KL Tower concession is rightfully ours, and any changes to ownership or management must follow the proper legal process.

"We urge all parties to refrain from rash actions that could undermine the image and reputation of KL Tower — a national icon and internationally renowned tourism destination," he added.

An ad interim injunction, a temporary measure, is typically sought urgently, often ex parte (in the interest of one side), prior to a full hearing for an interim injunction, to maintain the status quo and prevent irreparable harm until that hearing can occur. An interim injunction, sought to preserve the status quo throughout the legal process, if granted, generally remains in effect until the conclusion of the trial or a further order of the court.

In dismissing Hydroshoppe and Menara KL's application for the ad interim injunction earlier on Tuesday, judge Roz Mawar Rozain ruled that the balance of convenience did not favour granting the temporary injunction.

“What it (Hydroshoppe and Menara KL) has is the fifth concession agreement running from July 1, 2024 until March 31, 2025, and the purported minutes (of a meeting stating) that the government may extend the contract,” Roz Mawar said.

“However, these do not culminate in the plaintiffs' favour. Furthermore, there was a request for proposal to take over the concession in March 2024. The argument that (LSH Capital’s) subsidiaries had no expertise to run or manage the KL Tower is not a basis for this court to grant an ad interim injunction,” Roz Mawar added as she dismissed the application.

LSH Service Master was supposed to take over the KL Tower on April 1 this year, but a standoff occurred after Hydroshoppe and Menara KL initiated the lawsuit against the award of the KL Tower concession, alleging contractual breaches and misconduct that led to the award of the concession to LSH Service Master.

Subsequently, LSH Service Master lodged a police report against Hydroshoppe after it was unable to assume the operations of the skyscraper.

In their suit filed on March 27, Hydroshoppe and Menara KL claim that LSH Capital and its units had induced a breach of a contract that the plaintiffs had agreed to with the government in an Aug 1, 2022 meeting.

They claim that LSH Capital and its units had committed dishonest assistance, and want the award of the KL Tower concession to LSH Service Master be declared void and unlawful.

They are also claiming an estimated RM1 billion in damages, and for the concession of the iconic Kuala Lumpur landmark building to be transferred back to them.

In response to the lawsuit, LSH Capital has said the former KL Tower operator's claims were without merit, and that it would challenge the matter in court.

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