Langkawi R&D Academy Sdn Bhd (Lardac) has failed in its controversial RM480 million suit against the defence minister, the ministry’s secretary-general and the government for alleged wrongful termination and breach of a multi-million ringgit contract.

Kuala Lumpur High Court justice Abdul Wahab Patail dismissed Lardac's application with costs, without giving any grounds. The judge also ordered Lardac to pay costs of RM20,000.

NONE Lardac had filed the suit five years ago claiming for damages as a result of the wrongful termination and breach of the contract to undertake avionics upgrading and refurbishment works involving the first of 10 Royal Malaysia Air Force Northrop F5-E&F fighter jets.

This followed Lardac's assertion that the ministry had gone through the back door to allow its former partner, British-based Caledonian Airborne Systems Ltd (CAS Ltd), to take over the upgrading works, despite awarding Lardac the contract on Oct 11, 2001.

It also claims that CAS Ltd does not have a specific contract to operate with the Malaysian government, and that no show-cause letter was given to Lardac as required before the government decided to terminate the contract.

In a rare move, the court decision was made without the hearing of witnesses despite that they, including the ministry's former secretary-general Hashim Meon, were willing to come to court in April to testify for Lardac.

NONE Lardac was represented by lawyer and Teluk Intan MP M Manogaran, while senior federal counsel Noramilia Mohd Saad appeared for the government.

In an immediate response, Lardac's founder Mohammad Abdullah ( far right ) said his company will file an appeal.

"It is surprising that no grounds were given in the decision. The decision today is highly suspicious in light that no trial was ordered by the judge despite that witnesses were willing to come to testify," he said.

Startling revelations on Defence Ministry

Mohammad said the matter should have gone through a full trial as the court had already fixed the hearing date three months ago. Furthermore, the witnesses, including Hashim, were present on the day hearing was to begin.

He said the court's decision, which was based on written submissions from lawyers and not from the testimony of witnesses, was truly regrettable.

“This would be the grounds of our appeal. We would also be interested to know the grounds the court has decided to dismiss our application,” he said.

 

Lardac had always claimed that if the company had gone through a full trial, startling revelations could have been made to provide clues on the inner working of the Defence Ministry, which was then under Najib Abdul Razak.

Manogaran said they have 30 days to file the notice of appeal and based on his client's instruction, he will appeal the decision.

Earlier today, reporters had to search for the courtroom where the decision was to be delivered as justice Abdul Wahab was recently promoted to the Court of Appeal.

The court said that the grounds for the dismissal will be provided on Friday.