KUALA LUMPUR (April 5): Applications by ex-treasury secretary general Tan Sri Dr Mohd Irwan Serigar Abdullah and former 1Malaysia Development Bhd (1MDB) president and chief executive officer Arul Kanda Kandasamy to strike out a US$6.59 billion suit filed by the fund against them will be heard on July 24.
The date was set during case management before judicial commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan.
1MDB counsel Brendon Navin Siva confirmed the matter with The Edge.
"The defendants have amended their defences, and the court gave directions to file further affidavits and additional written submissions for the defendants’ applications to strike out [the suit]," he said.
Lavinia Kumaraendran appeared for Mohd Irwan, while Arul Kanda was represented by Gobinath Karuppan.
According to court filings, Mohd Irwan applied to strike out the suit against him in February last year on the grounds that it was premature, as 1MDB's claim over the Brazen Sky Ltd investment and the Aabar Investments PJS Ltd payment were unsustainable. This as the court had yet to determine whether 1MDB suffered losses of US$1.83 billion and US$3.5 billion respectively, as well as who were responsible for the losses.
Meanwhile, Arul Kanda applied to strike out the suit in June last year. Among others, he claimed that he cannot be held responsible for 1MDB's losses as a result of fraud committed by others.
1MDB filed the suit in May 2021 against Mohd Irwan and Arul Kanda, among others, for alleged breach of fiduciary duty, breach of trust and conspiracy. Among others, the strategic development company is seeking US$6.59 billion from the duo as a result of the purported breach.
In its statement of claim, 1MDB claimed that both Arul Kanda and Mohd Irwan are liable for breach of duties and breach of trust, which resulted in the strategic development company paying a sum of US$1.83 billion to 1MDB PetroSaudi Ltd. The payment was converted into stakes in Brazen Sky, and subsequently converted into an investment in Bridge Global Fund.
In a related development, on Feb 27, the International Petroleum Investment Company (IPIC) and its subsidiary Aabar Investments PJS agreed to pay the Malaysian government US$1.8 billion. The settlement was in respect of the legal proceedings in the London Court of International Arbitration and the London High Court.
Separately on March 3, Arul Kanda and jailed former prime minister Datuk Seri Najib Razak were both discharged and acquitted in the 1MDB audit report tampering trial.