Two Penang Turf Club members, Tan Sri Tan Kok Ping and Dato’ Lee Ah Hoe, on behalf of the other members, are suing the Club’s 12-person committee for substantial damages over various issues pertaining to the sale of the Batu Gantong land.
The civil suit summons comes up to over 30 pages so I will spare you the detailed grievances.
Basically, they are arguing that the three agreements signed with Abad Naluri were not in the best interests of the Club and its members.
The three agreements are the:
- Preliminary Agreement dated 21 March 2003;
- Restructured Agreement dated 12 May 2004;
- Supplemental Agreement dated 1 April 2008.
In particular, they argue that the first two agreements had already lapsed and the Committee should not have entered into the Supplemental Agreement to try and revive the earlier agreements – especially when the value of the land had soared to RM2 billion following rezoning (compared to the agreed price of RM488 million).
They argue that the Committee had earlier failed to require Abad Naluri to pay a 10 per cent deposit as is the common practice in Malaysia. And they point out that the Preliminary Agreement was aimed at allowing Abad Naluri to proceed with the sale of the Batu Gantong Land even though the firm was not in any position to perform its obligations.
They contend that at the time the Supplemental Agreement was signed, the Committee should have known that Abad Naluri had not yet entered into any Sale and Purchase Agreement with the PDC for the purchase of the Batu Kawan land and therefore could not complete their part of the deal.
They point out that no diligent care was taken in ascertaining the exact nature, location, valuation and the precise details of the alienation of the Batu Kawan land.
The crux of their contention is that the Committee entered into various agreements that were “designed and calculated to benefit Abad Naluri in a phenomenal profit”. It was “a scheme put into place by the Committee Defendants in total disregard of the interest of the Plaintiff and the other members of the PTC”.
Update: The defendants named are Turf Club committee members Ong Eng Khuan, Robert Chan Woot Khoon, Dr Henry Ooi Kwee Lim, Oon Chong Kie, John Alexander Rodgers, Seow Chin, Tan Phaik Guan, Teh Choon Beng, and Ch’ng Chin Ghee as well as club consultant Muhammed Rizal Abdullah, club financial controller Tan Hock Lim and club assistant general manager and secretary Leow Khin Ming.
They are being sued for “damages equivalent to the difference between the value of the Batu Gantong Land as on the date of the Extraordinary General Meeting of 25 November 2002 and as on the date of execution of the Supplemental Agreement on 1 April 2008” . That works out to some RM1.5 billion plus other damages.
Alternatively, they are being sued for aggravated and exemplary damages, interest, costs and other reliefs.