Lawyer Mohamed Haniff Khatri Abdulla said Justice Hue Siew Keng dismissed the applications as Najib, the federal government and 1Malaysia Development Bhd (1MDB) would not suffer any prejudice by filing their defence.
Haniff, who represented a group of opposition youth members, said Hue remarked that the plaintiffs had filed their suit six months ago but the three had yet to file their defence.
“The judge also stated that there was no statement under oath that the consent award between IPIC and 1MDB in London was protected under the Official Secrets Act (OSA) or any other law to restrict the trio from filing their defence,” he told reporters of the ruling made in Hue’s chambers this afternoon.
Haniff was assisted by Muhammad Rafique Rashid Ali, while Mohd Hafarizam Harun represented Najib, federal counsel Shaiful Nizam Shahrin appeared for the government and Cairns Tan for 1MDB.
The defendants have now been given up to Feb 9, the date of case management, to file their defence.
On Jan 9, Hue had dismissed applications by Najib and the two to strike out the suit, stating that the plaintiffs had an arguable case and the matter must go for trial.
The trio then applied for a stay and also filed an appeal in the Court of Appeal.
On July 11, the group, calling itself Gerakan Anakmuda Tolak Najib (Ganti), comprising opposition youth members, sought a court order that the settlement agreement between IPIC and 1MDB at the London International Court of Arbitration on May 11 be declared invalid.
Ganti also sought to compel Najib, the government and 1MDB to provide detailed accounts of all money paid to IPIC and its subsidiary, Aabar Investment PJS.
It claimed the consent award agreed on between IPIC and Aabar Investment PJS in London was wrong and fraudulent.
The group said it was forced to sue Najib and the other two as no action had been taken against those who made the “fraud payments” to the British Virgin Island-registered Aabar Investment PJS Limited, or Aabar BVI, which IPIC claimed was not its subsidiary.
IPIC’s subsidiary is Aabar Investment PJS (without the Limited).
As per the settlement, 1MDB said it would, among others, make certain payments to IPIC and would assume responsibility for all future interest and principal payments for two bonds issued by the 1MDB group of companies, due in 2022.
1MDB previously claimed it had paid IPIC’s subsidiary, Aabar BVI, a total of RM3.51 billion between 2012 and 2014.
However, IPIC disputed this in 2016, claiming it never received the money.
According to filings with the London Stock Exchange, IPIC said it would receive US$1.2 billion in two equal payments on July 31 and Dec 31.
The state investment fund has already settled these amounts.
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