KUALA LUMPUR (April 29): The High Court was told that businessman Victor Chin Boon Leong had real authority and was not just acting as an intermediary in a deal linked to the collapse of an air cargo joint venture.
Former M Jets International Sdn Bhd director Gunasekar Mariappan said Chin played a key decision-making role in negotiations involving MMAG Holdings Bhd (KL:MMAG) and M Jets International, including decisions on funding, operations, and business expansion. MJets International is now known as MJets Air Sdn Bhd.
Gunasekar's counsel Alex De Silva: It was put to you that the first defendant (Victor Chin) is not part of the joint venture to acquire M Jets and has no actual authority to instruct you, and is merely acting as a broker for the fourth defendant. Do you agree?
Gunasekar: Disagree.
De Silva: You are neither a director of M Jets nor MMAG, so there is no reason for you to trust or rely on the first defendant’s instructions. Do you agree?
Gunasekar: Disagree
De Silva: Why did you rely on him then?
Gunasekar: Because in all of our dealings, up to the time when he ghosted us, every single matter — whether related to funding or otherwise — was communicated through the first defendant.
We do not engage the other defendants directly. It was all through him, and he made the decision on the spot.
Gunasekar and another former director Philip Phang filed a counter-suit in July 2022 against Chin and eight others, seeking RM49.85 million, alleging they conspired to harm their investments in M Jets.
The other defendants are MMAG and its two directors — Kenny Khow Chuan Wah and Chong Koon Meng — as well as M Jets and JT Aerotech Solutions Sdn Bhd (JTAS), together with three JTAS shareholders — R Shanmugananthan, Anton Alex Schubert and M Saysu.
The dispute arises from a joint venture formed in November 2020 to acquire and transform M Jets — then a private jet charter company — into an air cargo operator. Under the deal arranged by Chin, MMAG Holdings was to own 80% of M Jets and invest RM46 million, while Gunasekar and Phang’s group (JTAS) would hold 20% and invest RM10 million.
The duo claim they were responsible for running the business and converting M Jets into an operational cargo airline, including securing aircraft leases, renewing licences and managing fuel arrangements.
However, both of them allege that issues arose when additional funding of about RM20 million was needed for expansion in late 2021 and early 2022, and not provided. The duo then claim Chin and MMAG reversed their position on the venture, leading to operational disruption, estimated losses of about RM16 million, and failure to scale the business as planned.
Chin 'ghosted' the duo
On Wednesday, Gunasekar told the High Court that Chin had personally assured them that funding would be arranged during a meeting in December 2021 but later became unreachable when it was needed.
“He refused to answer calls… we called, sent messages, he just ignored us,” Gunasekar said, describing the episode as Chin having “ghosted” them.
He added that there was a discussion involving a proposed RM5 million payout to certain parties, which he said was communicated via WhatsApp but later deleted before it could be recorded.
The former director said the original plan was for M Jets to run a cargo airline, but he was not told about any move to expand into cargo handling or warehousing. He added that later announcements about these new plans were made without informing him and Phang.
“Our original business was only a cargo airline… we were never meant to be a cargo-handling business,” Gunasekar said, adding that they later sought clarification after learning of the developments.
He also maintained that decisions taken during that period were based on instructions and assurances linked to Chin and the majority shareholder, MMAG.
Gunasekar also disagreed with suggestions that he failed to exercise independent judgement or due diligence, stating that decisions were made based on board approvals and representations made at the time.
Gunasekar and Phang were represented by De Silva, Teo Ju-li and Kang Zhen Leong of Messrs Alvin Tang Law Office, while Wong Kah Hui of Messrs KH Wong & Co appeared for Chin.
The case will resume on Nov 2, when the defence, including Chin, is scheduled to open its case. The High Court had earlier rejected Chin’s application to testify via remote communication technology.