PUTRAJAYA (Aug 20): A three-member Court of Appeal (COA) bench on Tuesday allowed an adjournment sought by 1Malaysia Development Bhd (1MDB) counsel Datuk Lim Chee Wee of the company's appeal over its civil action against the Swiss branches of banks JPMorgan and Coutts & Co.

Lim informed the bench, led by COA judge Datuk Supang Lian, that the strategic investment and development company’s co-counsel, Elizabeth Lau, who had dealt with the case, was not well, and that he would be handicapped in the hearing of the appeal.

Furthermore, Lim said he thought it would be proper for the matter to be heard as a whole, in the hearing scheduled for Dec 10 this year at the appellate court, where the appeal-proper over the two banks being struck out as parties in the suit because of jurisdictional issues is heard along with other appeals.

Senior counsels Robert Lazar for Coutts & Co and Datuk Malik Imtiaz Sarwar for JPMorgan did not object to the adjournment following Lau’s ailment.

As a result of this, Supang, who sat with Datuk Hashim Hamzah and Datuk Dr Choo Kah Sing, allowed the adjournment, and fixed Friday for case management.

The suit against the two Swiss financial institutions is part of 1MDB’s suit for US$1.11 billion, which 1MDB filed against Deutsche Bank, PetroSaudi International Ltd and PetroSaudi Holdings (Cayman) Ltd, businessman Tarek Obaid, as well as his right-hand man Patrick Mahony, for negligence, breach of contract, breach of fiduciary duties, conspiracy, and dishonest assistance in May 2021.

1MDB alleges that JPMorgan had dishonestly received the transfer of funds from 1MDB into PetroSaudi, while the allegation against Coutts & Co was that it dishonestly received the funds from 1MDB to Good Star Ltd.

Good Star was a company controlled by fugitive businessman Low Taek Jho, who is better known as Jho Low.

Both JPMorgan and Coutts & Co have denied the allegations by 1MDB.

It was previously reported early last year that the two Swiss financial institutions wanted to contest the jurisdiction in the filing of the suit in Malaysia, which was considered filed out of jurisdiction.

JPMorgan filed the contest of jurisdiction in 2022, while Coutts & Co filed theirs in January last year.

This resulted in 1MDB discontinuing its action against JPMorgan and Coutts & Co, with liberty to file afresh. However, 1MDB filed the discontinuance without leave (permission) from the High Court, only for the court to rule to strike out the notice of discontinuance of its action against the two financial institutions, resulting in Tuesday’s appeal.

This resulted in 1MDB refiling an amended writ, where the company sought an extension of time, and this was again struck out by Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan, where the court allowed the defendants’ question of jurisdiction earlier this year, resulting in the scheduled appeal before the appellate court on Dec 10 this year.