KUALA LUMPUR (Dec 5): The Kuala Lumpur High Court has set Feb 14, 2020 on whether it is to give a summary judgment in the case between the master developer of the Kuala Lumpur Vertical City (KLVC) who is suing the Federal Land Development Authority (Felda) and its investment arm Felda Investment Corp Sdn Bhd (FIC), over a dispute in the development of the project.
Judge Azimah Omar said she will give her decision next year after hearing submissions by developer Synergy Promenade Sdn Bhd and the defendant FIC, today.
Lead counsel Datuk Seri Gopal Sri Ram argued that Synergy Promenade had signed an agreement with FIC on June 2, 2014, where it was appointed as the master developer for a mixed development on 24 parcels of land, measuring 20.66 acres in total, owned by Felda and situated along Jalan Semarak here, but only one parcel was delivered to date.
“In the event any party breaks the agreement, the master developer is entitled to go to court. As part of the obligations undertaken in the contract,” Sri Ram told the court.
Under the deal, Sri Ram said FIC was responsible for getting Felda to provide the project land and appoint the company as the sole master developer with the sole and exclusive rights to carry out the project, and to develop the land in various phases within 10 years from the date of the first development order and the land conversion to the category of commercial.
FIC was required to deliver vacant possession of the land within 30 days of signing the agreement, and also ensure that the vacant possession is not revoked by Felda, prior to the completion of the project.
The defence, led by K. Kanagasabai, told the court since Felda is a statutory body, they needed the approval from the minister before the joint venture could take effect, but they did not get the approval.
Kanagasabai also argued that Felda would be the landowner and Synergy was merely the developer in the joint venture (JV) agreement.
“Both parties were supposed to benefit (from this deal). It also states that the Minister’s approval is needed but there is no approval here,” he said.
Sri Ram quashed his argument, citing the JV agreement.
“As per the agreement signed, it says that its a development agreement. It’s not a joint venture, it’s not a sharing of profit,” he said.
The plaintiff was also represented by Rajesh Kumar Sharma and Amritpal Singh.
Speaking after the submissions were made, Sharma said Synergy was seeking a decree of specific performance, requiring them to comply with the agreement.
“Our argument is that they didn’t get the approval, which was supposed to be done by indoor management,” he said.
Meanwhile, Federal Land Development Authority (Felda) and its subsidiary Felda Investment Corporation Sdn Bhd (FIC) have filed a RM2 billion suit against its former chairman Tan Sri Mohd Isa Samad, Tan Sri Shahrir Samad, various former directors-general of Felda and Synergy Promenade Sdn Bhd, Synergy Promenade KLVC Sdn Bhd and lawyers.