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Govt, minister fail to quash ex-KL Tower operator's suit

Govt, minister fail to quash ex-KL Tower operator's suit

The High Court ruled that there are issues arising from a supplementary agreement signed in 2022 between Hydroshoppe and the government for the lease of KL Tower which must go to trial.
KUALA LUMPUR : The High Court has rejected the government's bid to strike out a lawsuit filed by KL Tower's former operator over the award of the tower's concession to another company.
Justice Roz Mawar Rozain held that Hydroshoppe Sdn Bhd and Menara KL Sdn Bhd's claim against the government and communications minister Fahmi Fadzil, named a co-defendant, must proceed to trial.
'There are triable issues regarding the 2022 agreement,' she added.
However the court struck out Hydroshoppe's claim against the new operators, LSH Service Master Sdn Bhd, LSH Best Builders Sdn Bhd, and Service Master (M) Sdn Bhd.
Roz Mawar held that Hydroshoppe had failed to properly identify its cause of action against the three entities, rendering the suit defective.
She also ordered Hydroshoppe to pay them RM20,000 in costs.
The court fixed the suit against the government and Fahmi for case management on Nov 3.
In March, Hydroshoppe and Menara KL filed the suit claiming that the government's award of the concession to the LSH group was in breach of contract.
They asked the court to declare the award of the KL Tower concession to LSH Service Master void and unlawful.
They are seeking an estimated RM1 billion in damages.
Lawyer Vinayak Sri Ram appeared for Hydroshoppe while senior federal counsel Ahmad Hanir Hambaly appeared for the government and lawyer Malik Imtiaz Sarwar represented LSH Service Master.
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