An earlier Erinford injunction granted by the High Court lapsed last month.
The panel, headed by Abdul Karim Abdul Jalil, also allowed an order sought by Dhaya Maju-LTAT against Keretapi Tanah Melayu Bhd (KTMB), barring the railway operator from taking further steps in revoking its licence to occupy the Klang worksite, from Port Klang to Jalan Kastam.
The court had earlier heard arguments by the company’s lawyers as well as those for the government and KTMB.
“We take the view that there are merits in this application, and we agreed with the submission of the company’s counsel (Khoo Guan Huat),” said Karim, who sat with Hadhariah Syed Ismail and Che Mohd Ruzima Ghazali.
The government was represented by senior federal counsel Asliza Ali, Azlin Sabtu and Nurul Atiqah Azizan, while lawyer Sean Yeow appeared for KTMB.
High Court judge Lim Chong Fong had in June turned down Dhaya Maju-LTAT’s application to secure an injunction against the government and transport minister Wee Ka Siong following the government’s decision to terminate the contract.
Lim said no injunctions could be issued against the government and its officers from carrying out their duties, as stipulated in Section 29 of Government Proceedings Act (GPA).
The court, however, issued an Erinford injunction pending the company’s appeal to the Court of Appeal.
An Erinford injunction is one granted to an applicant to preserve the status quo pending the conclusion of an appeal.
Dhaya Maju-LTAT sued the government last year, seeking to declare the termination illegal, unlawful and a violation of a settlement agreement both parties had previously entered into.
They said the government had no basis to terminate the KVDT2 contract on grounds of public interest.
It alleged that Wee had an “ulterior and improper intention” to terminate the contract.
Dhaya Maju-LTAT also named consultant firm Opus Consultants in its suit.
During the hearing before the appeals court, lawyer Khoo said Section 29 does not bar any person from seeking an injunction at an interlocutory stage.
“The wording under Section 29 was drafted in the context of a final injunction,” he added.
However, senior federal counsel Asliza said Dhaya Maju-LTAT’s attempt to obtain an Erinford injunction application was rendered academic, as another High Court judge had issued a stay order against the government.
The stay order barred the government from tendering the KVDT2 project pending Dhaya Maju-LTAT’s judicial review hearing.
Yeow, meanwhile, argued that the contractor should not use an Erinford injunction against KTMB over the railway operator’s decision to revoke the licence to occupy the Klang worksite.
“What they are saying is they want to occupy our worksite, without carrying out any maintenance work and waiting for the case to be heard in court.
“The case may take about two to three years before a decision can be made,” he said.