KUALA LUMPUR: Former 1Malaysia Development Bhd (1MDB) top executive Tan Sri Mohd Irwan Serigar Abdullah failed to haul six individuals into the US$6.59 billion lawsuit filed against him by the sovereign wealth fund.
They are 1MDB former board members Datuk Kamal Mohd Ali and Datuk Seri Norazman Ayob; former 1MDB chief financial officer Azmi Tahir; former 1MDB chairmen Tan Sri Lodin Wok Kamaruddin and Datuk Seri Asri Hamidon; and its current chairman Datuk Seri Johan Mahmood Merican.
High Court judicial commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan made the decision today.
Third-party proceedings in civil lawsuits are employed as a legal method to involve an additional party who was not initially part of the litigation but may bear responsibility for either some or all of the plaintiff's allegations or the defendant's counterclaims.
Irwan, who is also the 1MDB former advisor filed a third-party notice on May 30 to seek compensation from the six individuals involved, should he be found liable in the lawsuit brought against him and the company former chief executive Arul Kanda Kandasamy.
Meanwhile, lawyer Rahmat Hazlan, who appeared for Azmi, when contacted, said the court found there was an excessive delay by Mohd Irwan in initiating third-party proceedings, as 1MDB had already filed the lawsuit in 2021.
He said the court found the third-party notice was filed just four months before the trial began.
"Therefore, the court ruled that it was an abuse of the court process and dismissed Mohd Irwan's claim against all third parties," he said.
The hearing is slated to commence on Monday (Sept 9).
Several high-profile figures are expected to testify, including former DAP national publicity secretary Tony Pua and Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
On Aug 23, the same court ruled that the lawsuit would proceed to trial after dismissing the duo's application to have it dismissed.
Mohzanuddin, in his judgement, said arguments and allegations raised in this suit cannot be decided and resolved merely by affidavits.
He said issues raised by the plaintiff merit further and thorough investigation by the court via a trial process.
In May 2021, 1MDB filed a suit against Arul Kanda and Irwan over an alleged breach of trust and conspiracy, which caused 1MDB to suffer losses amounting to US$1.83 billion in relation to its investment in 1MDB-Petrosaudi Ltd.
1MDB also claimed that the two defendants committed a breach of trust and conspiracy by misappropriating 1MDB money, amounting to US$3.5 billion, paid to Aabar Investments and US$1.265 billion, paid to International Petroleum Investment Company (IPIC), on May 9, 2017.
1MDB alleged that Irwan also conspired with Arul Kanda to cause the company to implement the Employment Extension Agreement, and made a substantial payment of RM2,905,200 to Arul Kanda as per the agreement, regardless of 1MDB's interests, causing the company to suffer losses and damage.
In this regard, 1MDB, among others, demanded that the two defendants pay US$6.59 billion for the breach and an additional RM2.9 million from Irwan in relation to the Employment Extension Agreement.
Irwan and Arul Kanda filed separate applications to strike out the suit on Feb 18 and June 2 last year, respectively.