The Appeals Court in Putrajaya today upheld the decision of a Kuantan High Court ordering logging company Seruan Gemilang Makmur Sdn Bhd to pay damages to the Pahang Umno liaison committee over a purported logging contract.

A three-member panel presided by justices Sulong Matjerai, Clement Allan Skinner and Mohtaruddin Baki unanimously dismissed Seruan Gemilang’s appeal and upheld the decision of the Kuantan High Court delivered on June 16, 2001.

On that date, the Kuantan High Court had allowed the Pahang Umno liaison committee’s counter-claim to declare that the contract dated Oct 2, 2000, which Seruan Gemilang had claimed that it had entered with Pahang Umno liaison committee, was null and void.

The High Court also ordered Seruan Gemilang to pay the Pahang Umno liaison committee damages to be assessed by the court.

Sulong said the submission made by Seruan Gemilang’s lawyer, Harpal Singh, that the court should not award damages to Pahang Umno liaison committee because the agreement was declared void, was not sustainable.

He also said there was no consent granted by the liaison committee to Seruan Gemilang to carry out logging works on Block A2.

On March 27, 2003, Seruan Gemilang filed a civil suit in the Kuantan High Court against the Pahang Umno liaison committee, claiming damages for a sum of RM31.16 million, alleging breach of contract concerning the right to log from a piece of land in Nenasi in Pekan, Pahang which was said to have been approved by the liaison committee.

The liaison committee counter-claimed by seeking a declaration that the purported contract was null and void, saying there was no contract.

It also sought Seruan Gemilang to pay them all benefits, profits obtained by the company for timber logs cut down in a 1,000 acre piece of land known as Block A2 in Nenasi. The liaison committee is claiming RM1.5 million.

On Dec 1, 2009, the Kuantan High Court allowed the liaison committee’s application to strike out the suit brought against them by Seruan Gemilang.

Seruan Gemilang did not appeal.

On June 16, 2001, the Kuantan High Court ruled in favour of the liaison committee’s counter-claim and ordered that damages be assessed.

Toh Seng Soon, representing the liaison committee, said it sought RM72 million in damages.

He said the RM72 million included benefits derived from a High Court decision on Sept 21, 2002 in another civil suit which Seruan Gemilang obtained judgment against the Pahang government and the Forestry Department.

In that suit, the court ordered the state government to pay the company damages of RM37.1 million. The sum has now increased to RM70 million which included interest.

- Bernama