The office of the Johor menteri besar, the director of the State Land and Mines Department and the State Economic Planning Unit will have to answer at the Johor Baru High Court whether they should be subjected to contempt in a matter related to the development of the Lido beach.

This follows the decision of the Court of Appeal in Putrajaya today to unanimously dismiss their appeal on a leave (permission) to initiate contempt proceeding (against them) following their failure to comply with a court's compliance order in a suit brought by the Johor Malay Chamber of Commerce Malaysia regarding the beach development.

Part of the Lido beach is now the Danga Bay development project.

Justice Abang Iskandar Abang Hashim, who led the three-member bench, ruled that their appeal ought to be and is hearby dismissed.

“We agree with the learned judicial commissioner that leave ought to be given for this matter so it should be further ventilated in trial,” he said.

He also ordered that the Johor menteri besar and two others pay costs of RM10,000 to the Malay Chamber of Commerce.

The other judges in the matter were Justice Zamani A Rahim and Justice Zaharah Yusof.

The Johor Malay Chamber of Commerce was represented by Malik Imtiaz Sarwar and Pavendeep Singh, while Johor was represented by state assistant legal adviser Wan Zainul Azamin.

The Johor Malay Chamber of Commerce filed a civil suit in 2005, following the three's failure to deliver to the chamber an area of 65,377 acres situated at Lido beach or alternatively a net sum of RM322 million.

Johor state reneged

However, in the midst of the trial the appellants entered into negotiations with a view to settling the suit and on Dec 14, 2009 a consent judgment was recorded by the court where the the three should alienate 12 ares of land free from encumbrances within the Johor Baru district located at Bandar Uda Utama.

They could also apply 40 acres of freehold land free from encumbrances for mixed development within 50km radius of Johor Baru.

However, despite numerous reminders of the consent judgment, the Johor MB and two others (the director of the State Land and Mines Department and the State Economic Planning Unit) failed to abide by the court judgment.

As a result, the Johor Malay Chamber of Commerce applied for a certificate of judgment under Section 33 (1) of the Government Proceedings Act 1956, within a period of three months from Jan 14, 2013.

On Feb 6, 2013, it obtained a consent judgment that the Johor MB and the two others pay RM26 million as caveat for not complying in getting the two-acre land and this caveat was removed after the sum was paid on Feb 14, 2013.

Despite this, the Johor Malay Chamber of Commerce claimed that the Johor MB, the director of the State Land and Mines Department and the state Economic Planning Unit failed to comply with the other terms of the compliance order and that includes seeing the 40 acres of land being given to them transferred to another company.

As they continued to defy the consent judgment and compliance order, a judicial review application was filed where the High Court allowed the substantive judicial review application and granted a mandamus order against the three.

The mandamus order compelling them to abide by the order was served on the state legal adviser on March 2, 2013, but they refused to comply with the court order.

On Feb 6, 2014, the Johor Malay Chamber of Commerce obtained leave from the High Court in Johor Baru to initiate contempt proceeding, but this was appealed by the appellants resulting in today's appeal.

Wan Zainul in appealing said the offices could not be compelled for contempt, but Malik replied that they are not gunning against the crown or state but the officers of the state.