The defamation suit filed by Consortium Zenith-BUCG Sdn Bhd against Penang Gerakan acting Youth chief Jason Loo in the High Court in Kuala Lumpur will now be heard in Penang.

Judicial commissioner Rohani Ismail made the decision in chambers today, after she allowed Loo's application to transfer the case from KL to the northern state.

“It is a forum of convenience as most of the witnesses are from Penang. The deliberation was made today and the judicial commissioner decided in our favour,” Loo's lawyer Ong Siang Liang said.

Lawyers Andy Yong and Chai Ko Thing were with Ong, while Tengku Haris Syazwani Tengku Roslan appeared for Zenith-BUCG.

The consortium, a Malaysia-China joint venture, is seeking an injunction to prevent Loo from uttering the defamatory words, an apology, general damages, aggravated and exemplary damages, cost and interest.

Loo, in his defence, also filed a counter-claim against the company, claiming that he did not mention the company's name at the material time.

He further claimed that the suit against him was filed mala fide (in bad faith) as the company claimed that he intended to personally gain from highlighting it.

Loo also pleaded the defence of fair comment as it was a matter of public interest.

A report said the company was awarded a (preliminary agreement) contract by the state government on Oct 6, 2013, to conduct a feasibility study and detailed design of the undersea tunnel project to connect in Penang Island with Butterworth.

The project was said to include a 6.5km paired-road, a 12km road from Tanjung Bunga to Teluk Bahang, a bypass measuring 4.6km between Ayer Itam and Tun Dr Lim Chong Eu Highway and another highway, measuring 4.2km, between Gurney Drive and Tun Dr Lim Chong Eu Highway.