Interior design firm Tatum (KL) Sdn Bhd has been ordered to refund RM2.3 million to Ivy Craft Sdn Bhd, a company owned by Sarawak governor Abdul Taib Mahmud's son Mahmud Abu Bekir Taib and his wife Elena Vasilenko.

The decision was handed down by Kuala Lumpur High Court judge Lee Swee Seng on Wednesday.

In August last year, Tatum had filed a suit against Abu Bekir's company, demanding RM2.2 million for an alleged breach of contract.

This prompted Ivy Craft to file a countersuit against Tatum demanding the return of RM2.3 million in overpayment and deposit payment.

Tatum's claim was unsuccessful. Instead, Tatum was ordered to refund the deposit money, as the company had not utilised it to purchase items as per contract but for other purposes and that only 30 percent of the works had been completed.

"No evidence was led by Tatum to substantiate their claim against Ivy Craft. Tatum’s claims remained and stood unproven even upon conclusion of the trial," Ivy Craft said in a statement.

In August 2013, Tatum signed its first contract with Abu Bekir’s company to design the interior of his bungalow located in Bukit Tunku, Kuala Lumpur.

A second contract was then signed in July 2015 to supply furniture, fittings and equipment for the bungalow project. 

Abu Bekir later issued letters to Tatum, stating his intention to terminate both contracts following a fallout with the project architect, whom Tatum had recommended.

Tatum’s suit concerns the second 2015 contract.