The Attorney-General's Chambers has declined the Court of Appeal's request for it to weigh in on whether a contract between a developer and a Selangor government-linked company should be recognised on public policy grounds related to exchequer principles.

According to news portal FMT, lawyer Lim Chee Wee told the appellate court today that his client Ikram Anggun Sdn Bhd was informed by the chambers of its decision two months ago.

Judge Hamid Sultan Abu Backer, who led the three-panel bench, however, said this would not deter the court from engaging others to assist in the case.

Ikram Anggun is locked in a legal tussle with Permodalan Negeri Selangor Bhd (PNSB) over the quantum of damages for a terminated contract.

In 2003, the two had entered an agreement to construct residential units and an institutional centre in Sungai Buloh.

PNSB voided the agreement in 2008 prompting an unlawful termination suit from Ikram Anggun.

The case was initially dismissed by the High Court but its decision was overturned by the Court of Appeal in 2015.

However, Ikram Anggun was only awarded RM100,000 in damages. It is appealing this quantum at the Court of Appeal, seeking RM35 million with interest and costs for loss of profit.

Hamid said today that Ikram Anggun had conceded it had not commenced site works despite its demands for millions in compensation. Nevertheless, he said the court was duty-bound to inquire into the matter.

To Ikram Anggun's previously filed bid to recuse the bench on grounds of prejudice and bias, Hamid today there were no grounds to disqualify the judges and suggested it raise the matter with Court of Appeal president Ahmad Maarop.

The recusal application was made after Hamid's comments in open court on Feb 22 that allowing Ikram Anggun's appeal for damages would shortchange the Selangor government.

Prior to that, Hamid had in an affidavit detailed a scam involving politicians, the private sector and judges to swindle public funds.

He had revealed that the previous government would enter into a contract with a political nominee and then terminate the agreement so that a breach of contract suit can be filed by the 'victims'.

The two would then enter into a consent judgement aided by corrupt judges and deplete public coffers with false claims.

Case management for the Ikram Anggun and PNSB case was set for Aug 8.