KUALA LUMPUR (June 7): The High Court (Insolvency division) has granted leave to 1Malaysia Development Bhd (1MDB) and its four subsidiaries to pursue their US$2.795 billion (RM12.9 billion) claim on Jho Low’s accomplice Eric Tan Kim Loong, otherwise known as "Fat Eric", at the civil High Court, despite him being declared bankrupt.
High Court senior assistant registrar Haneefa Ariffin granted permission to the plaintiffs when the case was called up on Wednesday (June 7).
This was confirmed to The Edge by counsel Siva Kumar Kanagasabai of Messrs Skrine.
“This means that 1MDB can proceed with the claim against Tan although he has been made bankrupt,” said Siva Kumar.
Tan had been made bankrupt by the Inland Revenue Board in June last year over unpaid income taxes of RM68 million between 2010 and 2013.
The plaintiffs are making a claim against him for knowing receipt, fraudulent misappropriation, unjust enrichment, breach of constructive trust, breach of fiduciary duty and conspiracy. The suit was filed in May 2021.
Last week, it was reported that 1MDB along with 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd and Global Diversified Investment Company Ltd, named Tan as judgment debtor and the Malaysian government as judgment creditor in the summons in chambers filed by Messrs Skrine on May 2, where they sought permission from the High Court (Insolvency) to pursue their claim at the High Court.
1MDB director Mohd Hisyamuddin Awang Abu Bakar, in his affidavit in support of the application, said since the suit had been filed two years ago, the balance of convenience is in the companies' favour as the court has full knowledge of the facts involved.
“Tan is also a crucial member of a group of influential fraudsters in 'one of the world’s greatest financial scandals' or the “largest kleptocracy to date” listed by the US Department of Justice,” he said.
The sum of US$2.795 billion, Mohd Hisyamuddin added, cannot be simply determined by the director-general of Insolvency interpreting and examining documents as part of the bankruptcy process. It also involves issues, facts and documents which cannot be determined by the director-general from a proof of debt form.
Prior to this, 1MDB and its four subsidiaries had named Tan, along with Low Taek Jho (Jho Low) and four of his family members Tan Sri Larry Low Hock Peng, Puan Sri Goh Gaik Ewe, Low Taek Szen and Low May Lin in a multi-billion ringgit suit which it filed in May 2021.
Following Wednesday’s decision, the High Court (civil division) senior assistant registrar Haslinda A Raof will be updated next week on Thursday (June 15) over the outcome with a case management before her.
Read also:
1MDB seeking permission to continue civil suit against Tan Kim Loong
1MDB seeks court’s leave to initiate US$2.18b claim against bankrupt Tan Kim Loong
Source: TheEdge - 8 Jun 2023
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