KUALA LUMPUR (April 20): Former Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah's application to strike out the US$6.59 billion 1Malaysia Development Bhd (1MDB) suit against him and the company's former president Arul Kanda Kandasamy will be heard on July 1.

The case will be heard before Judicial Commissioner Datuk Amarjeet Singh.

The date in the High Court was fixed by senior assistant registrar Azlinda Ahmad Sharif during case management on Wednesday (April 20). Irwan's counsel Lavinia Kumaraendran confirmed this when contacted by theedgemarkets.com.

In 1MDB's suit filed in May last year, the strategic investment fund accused Irwan Serigar and Arul Kanda of breach of fiduciary duty, fraud, conspiracy, breach of trust and dishonest assistance.

1MDB alleged that Arul Kanda and Irwan Serigar are liable for fraudulent breach of duties and fraudulent breach of trust, which resulted in the company paying a sum of US$1.83 billion to 1MDB PetroSaudi Ltd, which was converted into stakes in a company called Brazen Sky and then converted into an investment in Bridge Global Fund.

1MDB is also claiming that the duo committed fraudulent breach of duties and breach of trust against International Petroleum Investment Corporation (IPIC) and Aabar Investments PJS, which resulted in a payment of US$1.265 billion to IPIC on May 9, 2017 as part of a consent award and US$3.5 billion being misappropriated from the company to Aabar Investments PJS Ltd, also known as Aabar BVI or the fake Aabar.

In total, 1MDB is claiming US$6.59 billion from the duo as a result of the purported breach and an additional RM2.9 million from Irwan Serigar for fraudulent breach of duties and trust that resulted in an extension of employment agreement.

In filing his striking out application last Feb 18, along with his defence and counter-claim, Irwan Serigar argued that 1MDB's claim against him on Brazen Sky (2009-2012) and the US$3.5 billion payment to Aabar BVI that occurred prior to February 2015 should be barred under Section 6 of the Limitation Act 1953, as the suit filed against him and Arul Kanda last May fell outside the six-year limitation period.

The former treasury secretary-general also contended that the federal government had full control or exercised absolute control of 1MDB's affairs, where all approvals were brought to the Cabinet for deliberation, and to then prime minister Datuk Seri Najib Razak, who also held the finance portfolio, for approval.

Irwan Serigar argued that Article 117 of 1MDB's Memorandum of Articles stipulated that key decisions regarding the company require written approval and consent from Najib, and this includes any financial commitment (including investment) restructuring or any other matters likely to affect the guarantee given by the federal government for the company's benefit.

Following the Public Accounts Committee (PAC) report on 1MDB, Irwan Serigar said he was appointed chairman of the company sometime on May 31, 2016, where he was involved in the company's restructuring, appointing an auditor and raising revenue and inviting investors to settle 1MDB’s debts.

Until Irwan Serigar's resignation as 1MDB chairman on May 23, 2018, he claimed he had done all that was reasonably necessary to ascertain and investigate the financial standing of 1MDB and its subsidiaries, including 1MDB’s investment in Brazen Sky.

He further contended that in the losses 1MDB suffered in the Brazen Sky investment, the proper parties that should be held responsible were 1MDB's senior management, which comprised seven individuals, namely: Tan Sri Che Lodin Wok Kamaruddin, Tan Sri Ismee Ismail, Datuk Shahrol Azral Ibrahim Halmi, Azmi Tahir, Tan Sri Ong Gim Huat, Ashwin Jethanand Vikran and Terence Geh Choh Heng.

On IPIC, Irwan Serigar claimed it was a collective decision by 1MDB's board to pursue any impending arbitration, and defended 1MDB's position in regard to the US$3.5 billion payment.

He also maintained that the recording of the settlement deed, supplemental deed and consent award with IPIC was done at the express instruction of Najib.

“This was in spite of the then board that included him (Irwan Serigar) taking the view that the arbitration should be defended,” he said.

In his counterclaim, Irwan Serigar said the suit filed against him is an abuse of process. “The filing of the action is politically motivated against me, seeing that it only commenced after the change in federal government after the 14th general election," he said.

Arul Kanda, who filed a separate defence to the suit, denied he had breached his duties and said he had not committed fraud or fraudulent breach of trust. He did not file a striking out application.

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Irwan Serigar applies to strike out 1MDB suit; Arul Kanda denies breach of duty