Penang-based construction company Wabina Constructions & Engineering Sdn Bhd argued it was wrong for the government not to go through Parliament to change an existing federal law which gives 21 days before such companies have to be wound up. — Picture by Shafwan Zaidon
Wabina’s lawyer Ong Yu Shin said the High Court in Penang today allowed Wabina to proceed with its court challenge against the government, by granting the company leave for judicial review.that the Attorney-General’s Chambers’ senior federal counsel Rahazlan Affandi Abdul Rahim — who represented the government — did not object to Wabina’s application for the court’s nod to proceed for a judicial review.
Following a dispute over contract payments that Seal was due to pay to its main contractor Wabina, Wabina had obtained an adjudication award where Seal was ordered to pay over RM7.33 million on or before March 26, court documents filed by Wabina said. On April 23, KPDNHEP minister Linggi made a new written order — Companies Order 2020 — to exempt any companies that fail to pay the debt demanded in the notice of demand from the Companies Act’ Section 466 provision with the 21-day requirement, instead stating a new period of six months.