Malaysia Stadium Corporation (PSM) has applied to strike out a RM41.6 million lawsuit by KL Karnival Sdn Bhd

PSM applies to strike out KL Carnival suit over breach of lease contract

Khairah N. Karim
New Straits Times27 September 2018



PUTRAJAYA: Malaysia Stadium Corporation (PSM) has applied to strike out a RM41.6 million lawsuit by KL Karnival Sdn Bhd over the breach of a lease contract on a piece of land at Taman Sukan Extreme for the Bukit Jalil Stadium carnival.

Lawyer Adnan Seman, who represented KL Karnival, said the application will be heard before judicial commissioner Datuk Wan Ahmad Farid Wan Salleh on Nov 26, 2018.

Adnan told reporters the application was filed by PSM on grounds that it is a statutory body under the Perbadanan Stadium Malaysia Act 2010 and is therefore protected from any law proceedings under Section 35 of the Act.

He said that PSM, which was represented by lawyers Muhammad Faisal Moideen and Priscilla Tan, filed the application on Wednesday.

On July 5, KL Carnival had, through its managing director Mohd Rustam Roshandin, filed the suit claiming that PSM had leased a piece of land measuring 123,000 sq ft, at Taman Sukan Extreme for three years, to the end on Dec 31, 2020, for the carnival.

In the statement of claim, KL Carnival stated that it had spent RM3 million to carry out land work at the site and invested a lot on advertisements in newspapers and magazines, as well as on social media to promote the event.

It also claimed that it had opened up a centre for registration, with 430 tent hawkers and 210 container hawkers signing up and paying for their spots.

However, the carnival organiser claimed that in Jan 2017, PSM wanted to reclaim a portion of the land for use as a car park.

KL Karnival is claiming RM41.6 in damages, as well as interests, cost and other reliefs deemed fit by the court. © New Straits Times Press (M) Bhd