A building firm has lodged a legal case against the government for ignoring Parliament after implementing new legislation requiring bankrupt firms to pay back their loans to investors over a longer insurance duration of six months in order to prevent getting broken up.
The corporation claimed that it was unfair for the government not to move to Parliament and amend an current federal law that provides 21 days until it needs to wind up these businesses.
Wabina Constructions & Engineering Sdn Bhd, a construction business based in Penang, said the new rules enforced during the movement control order (MCO) era were illegal and had impacted its privileges as a borrower to assert an RM7 million sum owed by another firm.
The High Court in Penang today said Wabina ‘s lawyer Ong Yu Shin allowed Wabina to continue with her legal case against the government by granting the client leave for judicial examination.
Ong informed Malay Mail that the senior federal lawyer of the Attorney General ‘s Chambers, Rahazlan Affandi Abdul Rahim who advised the government did not respond to Wabina ‘s appeal for a nod from the court to continue with a judicial review
Ong said that Datuk Rosilah Yop, judge of the High Court, agreed there is a prima facie case, allowing our application for leave for judicial review.
Ong said that his firm today orally urged the High Court to transfer the dispute to the Federal Court and get the matter settled once and for all as constitutional problems were concerned, but the High Court had ordered the business and submit a substantive written application by July 14 for the Federal Court ‘s constitutional review. Ong said his client would render the substantive comparison pursuant to section 84 of the Judicature Act.
The argument would come up in the High Court on July 14 for case management. On the other hand, The Dewan Rakyat is scheduled to meet again for 25 days from July 13 to August 27, with the government preparing to introduce a new legislation on temporary measures to minimize the impact of the Covid-19 pandemic, including exemption from certain contractual obligations.