KUALA LUMPUR (Nov 3): The High Court was told today that businessman Victor Chin Boon Leong was consulted on major decisions involving cargo airline M Jets International Sdn Bhd despite having no aviation background.
Witness and second defendant Kenny Khow Chuan Wah said in his witness statement that Chin merely acted as a coordinator between the parties when negotiating the acquisition of M Jets and additional investment required.
Khow is a former executive director of logistics firm MMAG Holdings Bhd (KL:MMAG), was testifying in the legal dispute between former M Jets directors Gunasekar Mariappan and Philip Phang Kin Ming, and MMAG Holdings, M Jets, and seven others.
He said Chin had informed MMAG's directors of the opportunity to invest in M Jets, leading to the logistics firm acquiring an 80% stake in the cargo airline.
During cross-examination by Gunasekar's lawyer, Alex De Silva, Khow conceded that Chin had been involved in consulting on aviation matters.
De Silva: You are saying that you on behalf of MMAG used (Victor) Chin to communicate with the plaintiffs (Philip and Gunasekar) because this was the aviation industry that you did not have any knowledge of?
Khow: Yes, okay.
De Silva: So, are you saying Victor Chin had knowledge of the aviation industry?
Khow: I wouldn't say that he has prime knowledge of the aviation industry, but he has a vast knowledge of the logistics industry.
De Silva: He does not have any... any experience in the aviation industry, isn't that right?
Khow: Yes, he does not have.
De Silva then suggested to Khow that it would not make sense for him and MMAG directors to use Chin as an intermediary due to his lack of aviation expertise.
Khow replied that the company relied on "the people they had” and that Chin was very involved in the logistics business and that aviation part of the industry.
MMAG Holdings is suing Gunasekar and Philip for RM23.17 million for alleged breaches of fiduciary duties in M Jets.
Both men then counter-sued Chin and eight others in July 2022, seeking RM49.85 million, alleging they had conspired to harm their investments in M Jets.
The other defendants are MMAG and its two directors — Khow 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.
Gunasekar and Phang were represented by De Silva, Teo Ju-li and Siti Sarah of Messrs Alvin Tang Law Office, while Wong Kah Hui of Messrs KH Wong & Co appeared for Chin.
Chin is set to testify but had recently filed a fresh application to testify via video link from Zhuhai, Guangdong, China. He asserts he is "medically unfit to travel by air" and has offered to testify first for the defence.
Justice Leong said on Monday that he will deal with Chin’s application in January of 2027.