PUTRAJAYA (May 26): Bank Pembangunan Malaysia Bhd has obtained a stay of a High Court hearing on a counterclaim filed by Aries Telecoms (M) Bhd, Zavarco Bhd and Zulizman Zainal Abidin, which is linked to its 2018 lawsuit that the bank won.

The hearing, originally scheduled for next month, has been paused while the bank appeals the counterclaim stay which was dismissed in an April 10 decision.

Bank Pembangunan had sought to stay the counterclaim proceedings as it appeals the striking out of its June 2022 fraud suit involving its RM400 million loan to Aries Telecoms.

The counterclaim is linked to Bank Pembangunan’s 2018 lawsuit against Aries Telecoms, Zavarco (the corporate guarantor) and Zulizman (the personal guarantor), in which the bank obtained summary judgment in its favour that was upheld by both the Court of Appeal and the Federal Court.

In the 2022 fraud suit, the bank sought at least RM564.99 million from 30 defendants, including Aries Telecoms and Zavarco. The case was struck out in February on grounds including lack of locus standi or legal standing, but the bank is appealing the decision. This is its second suit involving the loan it provided Aries Telecoms in 2012.

A three-judge panel led by judge Datuk Azizul Azmi Adnan granted a consent order sought by Bank Pembangunan after Aries Telecoms, Zavarco and Zulizman — represented by counsel Bryan Goh from Messrs Bryan Goh Advocates and Solicitor — agreed to pause proceedings while the bank appeals the earlier decision to dismiss its application for a stay of the counterclaim hearing. The panel also included judges Datuk Ismail Brahim and Datuk K Muniandy.

The counterclaim was scheduled for a five-day hearing before Datuk Quay Chew Soon starting June 15, but has now been stayed.

The bank argued that continuing the counterclaim would be unfair as it is closely connected to the fraud suit that was struck out and is now under appeal.

Case management for the bank’s appeal against the April 10 dismissal of its stay application for the counterclaim has been fixed for July 13.

Bank Pembangunan filed a notice of appeal on March 3 against Quay’s Feb 23 decision to strike out its June 2022 fraud suit, on grounds of lack of locus standi and res judicata (the matter had already been decided in a previous case).

The bank is seeking at least RM564.99 million in damages, alleging that the defendants conspired to defraud it in relation to a RM400 million loan to Aries Telecoms in 2012, including claims that funds were misused through inflated invoices and directors’ fees and that the fraud was concealed.

Among the defendants is former Aries Telecoms managing director Datuk Ranjeet Singh Sidhu, who was allegedly involved in a scheme involving payments to the then president and managing director of Bank Pembangunan to waive loan disbursement conditions.

Quay ruled that any alleged misuse of the loan should be addressed by Aries Telecoms as the borrower, and noted that the bank’s earlier suit did not challenge the use of the loan.

Case management is scheduled next week at the Court of Appeal.

Besides the civil suit, three key individuals were charged earlier this year with regards to the RM400 million loan from Bank Pembangunan, namely Ranjeet, businessman Shailen Popatlal and former Silver Ridge director Wong Chee Keong.

Ranjeet, a former Aries Telecoms director, was charged in February with graft and using forged documents. He is also accused of offering an RM8 million bribe to help secure the loan.

Shailen, also known as Shailen Gajera, faces charges of money laundering and using forged documents. He is accused of moving over RM128 million and using fake documents to secure the RM400 million loan.

Wong, 73, was charged with allegedly submitting a false declaration to deceive an officer of Bank Pembangunan. He is accused of cheating an assistant manager in the bank’s technical services division by submitting a fake declaration form related to Silver Ridge’s independent checking engineer project, in order to mislead the bank.

Silver Ridge’s role was to independently verify that the fibre routes were actually being built.

Read also:
High Court strikes out Bank Pembangunan’s second lawsuit over RM400 mil loan to Aries Telecoms
Special Report: What happened at Aries Telecoms? A RM400 million loan for an incomplete fibre-optic project
Three individuals charged in relation to RM400 mil loan granted by Bank Pembangunan in 2012, who are they?