
SRC International’s lawyer Razlan Hadri Zulkifli said senior figures on both sides have been in talks to resolve the case.
“We are cautiously optimistic following this new development,” he told Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan.
Lawyers Shahrul Fazli Kamarulzaman and Hasnal Rezua Merican, appearing for Umno’s headquarters and Selangor Umno respectively, confirmed the negotiations.
The judge adjourned proceedings to Nov 27 to allow negotiations to continue.
“I wish the parties fruitful working days ahead,” he added.
Trial had been scheduled to take place over two weeks beginning Nov 18.
On Monday, Shahrul and Hasnal told the judge that they were “working extensively” with SRC International to explore the possibility of a settlement.
The judge then fixed for trial to commence today.
SRC International and its two subsidiaries, Gandingan Mentari Sdn Bhd and Jendela Pinggiran Sdn Bhd, filed the lawsuit to recover RM16 million and RM3.5 million from Umno and its Selangor chapter respectively.
They claimed the entities received the respective sums between April and June 2015 despite knowing they were not entitled to them.