Judge Lee Swee Seng, who headed the three-man panel, dismissed the government’s appeal to quash an order for contractor Dhaya Maju LTAT Sdn Bhd to commence a judicial review challenging the Perikatan Nasional-led government’s decision to terminate their contract to manage the double-tracking line.

“The respondent (Dhaya Maju LTAT) has satisfied the threshold test to initiate a judicial review proceeding on grounds that they were adversely affected by a decision of the government in exercising its public function.

“The termination of a construction contract is usually a private law matter but, in this case, there is a public element as the government cited the termination was done on the grounds of ‘national interest’,” he said when delivering the court’s unanimous decision.

The other judges who presided were S Nantha Balan and Mohd Sofian Abd Razak.

Lee also said there is no reason to interfere with the High Court judge’s powers to exercise her discretion to allow a stay against the government’s decision to call for a public tender on KVDT2 pending Dhaya Maju LTAT’s hearing.

The court also ordered the government to pay RM15,000 in costs.

The company was represented by lawyers Cyrus Das and Lim Chee Wee while senior federal counsels Ahmad Hanir Hambaly @ Arwi and Nor Atikah Zainal Abidin appeared for the government.

The company is seeking a court declaration that transport minister Wee Ka Siong’s decision to cancel its KVDT2 contract, as well as to reopen the tender, are null and void.

Dhaya Maju LTAT also wanted the court to quash the decision and to compel the government to execute all documents and agreements.

The case is fixed for mention on Aug 5 before the High Court.