Justice Arik Sanusi Yeop Johari held that the court was not bound by Section 29 of the Government Proceedings Act 1956, which limits the court’s power in granting injunctions against the government in civil suits.

“I am of the view that Section 29 of the Government Proceedings Act does not strictly prohibit the granting of an interim injunction. I am satisfied that such relief may be granted,” he said in allowing Aerotree’s application.

The interim injunction will remain in force until the disposal of Aerotree’s RM353 million lawsuit against the government and defence ministry over the termination of the five-year lease agreement worth RM187.5 million involving four US-made Black Hawk UH-60A helicopters.

According to the suit filed through Messrs Hafarizam Wan and Aisha Mubarak, Aerotree wants the court to order the government to proceed with the lease deal based on the acceptance letter dated April 17, 2023, or pay RM353 million in damages and additional compensation.

It is also seeking a declaration that the government’s termination of the agreement on Oct 31, 2024 is null and void.

The termination letter was issued after Aerotree purportedly failed to deliver two helicopters within six months of receiving the acceptance letter, and the remaining two within nine months.

The defence contractor had cited technical modifications, pilot training, and the Russia-Ukraine conflict as reasons for the delay, and purportedly requested three extensions up to Oct 30, 2024.

Lawyer Hafarizam Harun represented Aerotree while senior federal counsel Nik Noor Nik Kar appeared for the government.

The court set Jan 27 for case management.