Logging company Seruan Gemilang Makmur Sdn Bhd failed to obtain an order from the Appeals Court here today, to stay a Kuantan High Court proceeding on assessment of damages, pending hearing of its (Seruan Gemilang’s) leave to appeal application.

A three-member panel chaired by Clement Allan Skinner, in a unanimous decision, dismissed Seruan Gemilang’s application, saying there was no special circumstances to grant the stay order.

Justices Linton Albert and Lim Yee Lan were the other two judges sitting on the panel.

On March 29, this year, the Appeals Court upheld the decision of a Kuantan High Court ordering the company to pay damages, to be assessed, to the Pahang Umno liaison committee over a purported logging contract.

The proceeding on assessment of damages is fixed for hearing at the Kuantan High Court for two days, on June 23 and 24.

Seruan Gemilang has filed a leave application to appeal to the Federal Court against the March 29 decision of the Appeals Court. That matter has been set for case management on May 9.

The company’s lawyer, Harpal Singh, said three legal questions had been formulated, including whether the court was authorised by law to direct assessment of damages for breach of agreement of an agreement declared void and unenforceable by the court.

On March 27, 2003, Seruan Gemilang filed a civil suit in the Kuantan High Court against the 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 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 asked Seruan Gemilang to pay them all benefits and profits obtained by the company for timber logs cut down in a 1,000-acre land known as Block A2 in Nenasi. It 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 to the Appeals Court.

On June 16, last year, the Kuantan High Court allowed the liaison committee’s counter-claim and declared the contract dated Oct 2, 2000, which Seruan Gemilang had claimed that it had entered with the committee, null and void.

The High Court ordered that damages be assessed.

- Bernama