MySJ’s counsel Razlan Hadri Zulkifli, who confirmed the matter, said the decision was delivered by Judge Ahmad Fairuz Zainol Abidin via email.
He said the court had dismissed applications by the three companies (Entomo, Revolusi and MySJ) to strike out P2’s application.
He said an appeal would be filed.
P2’s claim, says that, around 2020, Entomo had submitted a proposal for a mobile application-based solution to the ongoing Covid-19 crisis, using its software to develop a mobile application known as MySejahtera.
Due to the success of the application, Entomo no longer wished to offer the software and application on a CSR (charitable) basis, and instead was determined to make business profits through the software and the application.
P2 said that on Oct 6 that year MySJ entered into an agreement with Entomo, in which Entomo was to transfer the intellectual property of the application to MySJ and grant MySJ the licence for the software. MySJ was to pay Entomo a total of RM338.6 million for the intellectual property and licensing fees.
Between November and December 2020, Entomo submitted a proposal to the government, and wrote letters pleading with the government to agree to a commercial model for the continued use of the MySejahtera app, either through a public-private partnership, or a service contract between the government and MySJ, the statement said.
P2 said the government did not respond to the proposal at the time, and contended that MySJ would generate no income at all in the event that the government disagreed with the proposal.
“On Dec 31, 2020, Revolusi entered into a share sale agreement with P2 Asset Management in which Revolusi would sell MySJ shares to P2. Among the terms of the agreement were that P2 represented to Revolusi that it would facilitate in obtaining a letter of award from the government to MySJ for the continued use of the application.
“Revolusi will also transfer an additional 3,579,237 units of MySJ ordinary shares, representing a 10% equity interest in MySJ, in favour of the plaintiff provided the plaintiff is not in material breach of any of the terms and conditions,” according to the statement of claim.
However, P2 claimed that Entomo and Revolusi had conspired to cause Revolusi’s breach of the share sale agreement, to P2’s detriment.
P2 sought a declaration that Entomo and Revolusi had committed a breach of contract and were liable to pay RM5 million as damages, with other general damages to be assessed by the court.