The Selangor government is considering legal action against a company that accused the Shah Alam City Council (MBSA) of failing to pay damages in a suit it won in 2009, senior state executive councillor Teng Chang Khim said today.

Teng said the company, Menara Biru Sdn Bhd, had acted with bad intention in its action against MBSA yesterday, as it had made an untrue claim.

NONE "What is demanded is costs, following the court decision in 2009. However, the company, as was reported, said MBSA failed to pay damages as ordered. This has nothing to do with the case," Teng ( right ) said.

"We have applied to strike off the company's suit and have filed a counter-claim. This matter is still pending," he said.

Teng said what was reported by the media on claims made by Menara Biru were untrue and without any basis.

"We will not hesitate to take stern action," he added at a press conference.

Teng was referring to a report in an English daily yesterday that Menara Biru had obtained a writ of seizure to sell Wisma MBSA, after the city council failed to pay the damages it was ordered to do so.

He explained that the matter went through arbitration, but there was not much development and MBSA registered its unhappiness with the process and applied for it to stop.

"There is an appeal after that and following this, the matter is still pending before the Federal Court," he said.

Menara Biru lawyer Sharmila Ravindran when contacted by Malaysiakini said the company would respond appropriately, based on what action the MBSA took.

The daily in its report yesterday said an attempt to seal off the MBSA headquarters building was cancelled after the city council paid up a portion of the amount.