Justice Collin Lawrence Sequerah said the High Court had erred in concluding that there were no triable issues.

“Several key factual and legal disputes can only be properly determined through evidence from witnesses, and the matter ought to be ventilated through a full trial,” he said in allowing AIMST’s appeal to set aside the summary judgment.

The panel, which included Justices P Ravinthran and Alwi Abdul Wahab, also ordered the case to be heard before a new judge.

The dispute stems from a July 2021 agreement in which Nugrahan was to provide United States Medical Licensing Examination (USMLE) preparation programmes for AIMST’s medical students.

Nugrahan alleges AIMST agreed to purchase the Step 1 and Step 2 programmes but later terminated the contract without justification.

AIMST, however, claims it was misled into signing the agreement.

The university says it was assured the USMLE Step 1 exam would continue using numerical scores, which are crucial for US medical residency placements.

It later discovered the scoring system had shifted to pass/fail, significantly reducing the programme’s value and suitability for its students.

AIMST is also counterclaiming for over RM2.9 million in losses, arguing the contract is voidable due to misrepresentation.

Counsel R Rishikessingam appeared for AIMST, while Vinayak Sri Ram and Chew Thean Ern represented Nugrahan.