KUALA LUMPUR (Oct 31): The High Court has dismissed an application by the government of Malaysia (GOM) to convert an originating summons (OS) by Prestariang Skin Sdn Bhd into a writ action, paving the way for the court to now determine how much the government ought to compensate the company for its termination of a RM3.5 billion concession agreement previously granted.

In a filing to the bourse, Prestariang Bhd said the GOM's application had been heard on Sept 25 and that on Oct 30 the judge had dismissed the application and awarded costs to its unit, Prestariang Skin.

In dismissing the application, the judge held among others, that the termination of the concession agreement by expropriation is not in dispute. The only issue for the determination of the court is the amount to be paid by GOM as a consequence of the expropriation. The concession agreement provides for a contractual formula to determine the amount to be paid. As such, there are no disputes of fact to warrant a trial," Prestariang said.

The judge further directed that the hearing of the OS and cross-examination of the affidavit deponents be fixed for July 1 to 3, 2020.

The conversion of an OS to a writ would allow the defence to cross-examine the witnesses as opposed to an OS where replies are made via an affidavit.

Prestariang Skin's legal action seeking RM733 million in damages, stems from the GOM's termination in January of a RM3.5 billion National Immigration Control System (SKIN) project awarded in 2017.

Separately, Prestariang Skin and GOM have agreed to refer the dispute to mediation by the Kuala Lumpur Court Mediation Centre. The parties agree mediation shall proceed concurrently with court proceedings. On Wednesday, the company and the immigration department held the first mediation session which took nearly two hours.