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Wednesday, October 24, 2018

High court injunction granted against Borneo Samudera and Bagahak Plantations by smallholders

KOTA KINABALU - Two Sabah land development smallholders have won the first round in their bid for court order barring any settlement between two state-owned companies and three individuals including Deputy Chief Minister Datuk Christina Liew.

The Sandakan High Court on Monday granted an interim injunction to the two pensioners preventing state-owned Borneo Samudera Sdn Bhd (BSSB) and Bagahak Plantations Sdn Bhd (BPSB) from entering into any settlement that included transferring the Bagahak land to a Kuala Lumpur-based firm.


On 22nd October 2018, Sandakan High Court Judicial Commissioner, Bexter Agas Micheal, allowed the Plaintiff's ex-parte application for injunction against Borneo Samudera Sdn Bhd and Bagahak Plantation Sdn Bhd.

The smallholders were represented at the hearing by their counsels Christine Gloria and Yong Yit Jee.
 An ex-parte interim injunction order shall have effect for 21 days unless earlier revoked or set aside.
The Court also fixed an inter partes hearing on 1st November, Thursday.

The smallholders - Andurangan bin Tubay, 69, and Ettin bin Ali, 81, now have seven days to file and serve the High Court Order to the defendants - Borneo Samudera and Bagahak Plantations.

In their originating summons, Andurangan and Ettin stated that any settlement between Datuk Christina Liew and the other two others with Borneo Samudera and Bagahak Plantation should be deemed invalid, null and void if it did not have the written consent of the smallholders and Ramapower Sdn Bhd.

Andarungan, a retired police officer, and Ettin, a Customs Department pensioner, stated in their originating summons that both companies must seek the consent of all smallholders in the Bagahak land development scheme as well as a company Ramapower Bhd which they had a stake in.

Their originating summons filed by the law firm Gloria Legal, was centered around a Sept 30, 2014, the High Court ruling against Liew, Siti Rahfizah binti Mihaldin and Samsuri bin Baharuddin.

High Court judge Justice Chew Soo Ho in his ruling ordered Liew, Siti Rahfizah and Sasuri to pay damages totalling some RM557mil to Borneo Samudera or inducing the Bagahak smallholders to breach their joint venture agreement with the state-owned firm.

In their originating summons, Andarungan and Ettin, stated that any settlement between Liew and the two others with Borneo Samudera should be deemed invalid, null and void if it did not have the written consent of the Bagahak scheme, smallholders and Ramapower.

They also sought from the court an injunction barring Borneo Samudera and Bagahak Plantations from transferring land under the Bagahak scheme totalling more than 8,000 acres without the consent of the smallholders and Ramapower as well.

Andarungan and Ettin also sought a court order that any transfer of the said land to any individual or company without the approval of the smallholders would be in breach of a 1998 joint venture agreement between Borneo Samudera and the smallholders.

In his ruling after Borneo Samudera’s suit against Christina and three individuals in 2014, Justice Chew held that the state owned firm had proven in law that the trio had induced the smallholders to breach their agreement with Borneo Samudera.

The judge in allowing Borneo Samudera’s claim had also granted a declaration that the smallholders were relieved from all and every liability under the respective sale and purchase agreements purportedly that they entered into with one of the three defendants.

In the suit Borneo Samudera, a subsidiary of the state owned Sawit Kinabalu Sdn Bhd alleged that the trio had unlawfully induced the 819 smallholders to breach the joint venture agreement.

The company had also alleged that Liew was the advocate and solicitor in preparing the alleged sale and purchase agreements had conspired with the two other defendants, one of whom was her staff.

The court also found that the various sales and purchase agreements purportedly signed by the smallholders between 2006 and 2007 were prepared by the woman lawyer based on her unilateral legal opinion that the joint venture agreement had allegedly been breached or terminated and that the smallholders were entitled to sell their respective lots.

In his ruling, Justice Chew held that the woman Liew’s role in the scheme was not merely to give advice to the smallholders but had taken active steps to get the smallholders to sell their lots to her employee knowing full well that the land had been pledged with BSSB through the joint venture deal.


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