Decision on Umno bid to strike out RM218mil suit on Sept 10
By Chua Sue-Ann, The Edge
KUALA LUMPUR: The Kuala Lumpur Commercial High Court will on Sept 10 rule on Umno's application to strike out a suit filed by supplier Elegant Advisory Sdn Bhd claiming payment of RM218 million for election campaign material used by the party in the 2004 elections.
Judicial commissioner Anantham Kasinaker fixed the date after hearing further submissions on two applications in chambers on Sept .
On the first application, Umno's counsel Datuk Harafizam Harun says the court granted Elegant Advisory's request to change the defendant named in the suit from former Umno treasurer Datuk Seri Abdul Azim Mohd Zabidi to the party's former administration and finance secretary Datuk Ishak Abdul Rahman.
The application was allowed with the court ordering Elegant Advisory to pay costs of RM5,000 to Abdul Azim within 14 days, Hafarizam says.
On the second application, Hafarizam says Umno was applying to strike out the suit because there was no privity of contract between the party and the supplier.
Hafarizam says he also argued on the grounds of res judicata, maintaining that the matter had already been litigated in a previous suit between four companies and Umno.
The earlier case was settled out of court with the four companies; Art Printing Works Sdn Bhd, NHK Transport & Warehouse Sdn Bhd, Percetakan Rina Sdn Bhd and Setia Kawan Printers Sdn Bhd.
Elegant Advisory's counsel Ahmad Tarmizi Abdullah says the current suit between Umno and Elegant Advisory did not overlap with the earlier suit involving the four companies.
Ahmad Tarmizi says that Elegant Advisory was relying on Section 71 of the Contract Act 1950, in arguing that a contract existed.
Section 71 states that when a person does or delivers anything to another person but "not intending to do so gratuitously and such other person enjoys the benefit thereof", then the latter is bound to make compensation to the former.
"Who my client met in Umno, who gave the orders will be detailed later. The goods have been taken, used and the party had won [the elections then]. They have to pay." Ahmad Tarmizi says.
Abdul Azim had filed the strike-out application on July 24 and has since obtained a stay order on an earlier default judgment.
On July 17, 2008, High Court deputy registrar Ahmad Faizadh Yahaya issued the judgment in default, ordering Umno to pay RM218,013,475 to Elegant Advisory after the party failed to respond to the suit.
The sum was for printed campaign materials, transportation and mineral water used during the 11th general elections.
The company filed the civil suit against Abdul Azim in his capacity as Umno treasurer on June 23, 2008.
