Umno succeeds in setting aside RM218mil default judgement

(Bernama) — Umno today succeeded in its bid to set aside a judgment in default obtained by a merchandise supplier against the party in relation to the provision of RM218 million worth of election merchandise.

High Court deputy registrar Ahmad Faizadh Yahaya made the order with costs in chambers after allowing Umno's application to set aside the judgment, issued on July 17 last year, ordering the party to pay Elegant Advisory Sdn Bhd RM218 million, interest and costs.

The company sought the judgment after Umno failed to respond to its suit.

Datuk Mohd Hafarizam Harun, counsel for Umno, told reporters that he would file a conditional memorandum of appearance to enable him to apply to strike out the company's writ of summons and statement of claim.

Elegant Advisory filed the civil suit in June 23 last year naming Umno treasurer Datuk Seri Abdul Azim Mohd Zabidi and the party as defendants.

Mohd Hafarizam said the deputy registrar had accepted Abdul Azim's claim, enclosed in his application to set aside the judgment in default, that the writ of summons and statement of claim were initiated without complying with Order 10 Rule 1 of the High Court Rules 1980 and Section 9 (c) of the Societies Act.

He said the documents were not personally served on the defendants, he said.

Moreover, Elegant Advisory had named the wrong party as defendant, he said, adding that it should have named the party's public officer and not the Umno treasurer.

In its writ of summons filed via Messrs Termizi & Co, the company said it was involved in supplying election merchandise, transport service and publications and had supplied Umno with the items for the 11th general election in 2004 upon the request of Abdul Azim.

It claimed that that since Abdul Azim had requested for supply in large quantities and within a short period of time, this resulted in the company appointing third parties (printing companies and other suppliers) to deliver the items on time and Abdul Azim had full knowledge of this.

The company had sent invoices for a sum of RM218,013,475 to Abdul Azim for payment and on May 22, 2004, a letter was sent to the defendant but it still failed to obtain payment, it said.

Besides the RM218 million, Elegant Advisory is also seeking 8% annual interest from the date of filing of the writ until settlement of the case.

Elegant Advisory was represented by counsel Mohd Nazruddin Abdullah. — The Sun