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Sabah Air to pay RM2.45mil

Published on: Friday, January 24, 2014

Kota Kinabalu: The Court of Appeal in a judgement here, Thursday, ordered Sabah Air Aviation Sdn Bhd (Sabah Air) to pay RM2,453,266 to Borneo Helicopters Sdn Bhd (Borneo Helicopters) over an outstanding management fee claim for year 2008, besides damages to be assessed by the Court Registrar for unlawful termination of management contract.

Court of Appeal Justices Dato' Azahar bin Mohamed, Datuk David Wong Dak Wah and Datuk Linton Albert unanimously rejected any contention that there was any fraud and conspiracy over the management agreement entered into between Sabah Air and Borneo Helicopters, Sunildeep Singh Dhaliwal and law firm Messrs Ronny Cham & Co.

With this verdict, the Court overturned High Court Judge Dato' Abdul Rahman bin Seblie's findings on March 23, 2012, which saw the dismissal of Borneo Helicopters' claims against Sabah Air for management fees amounting to RM2,453,266 for 2008 and for damages for unlawful termination of a management agreement dated 29.04.2008 by Sabah Air under a new chairman.

The High Court had also allowed Sabah Air's counter claim that the said management agreement was null and void and that it had been duly terminated by Sabah Air.

The High Court had further allowed the counter claim of fraud and conspiracy against Borneo Helicopters, Sunildeep Singh Dhaliwal and Ronny Cham & Co. with damages to be assessed.

A spokesman for the appellants indicated that the damages to be assessed could amount to RM24.5 million. Ronny Cham, when contacted, said "Truth and justice had prevailed.

The Court of Appeal had vindicated our firm."

Sabah Air has a paid up capital of RM41 million. Borneo Helicopters Sdn Bhd and Sunildeep Singh Dhaliwal were represented by Counsels Norbert Yapp and Eow Ee Pei.

Messrs Ronny Cham & Co. was represented by Datuk Wong Kian Kheong and SabahAir Aviation Sdn Bhd by Mau Kam Peng.

Sabah Air provides air transportation of passengers, cargo and aviation-related services in Malaysia, with Kota Kinabalu as its headquarters. It is a Malaysian-owned helicopter and fixed wing charter and leasing company established in 1975 to provide air transportation of passengers, cargo and aviation-related services in Malaysia.

Sabah Air has an unrestricted Malaysia-wide Air Operator's Certificate (AOC) to provide unscheduled air services.

The company has been the recipient of the Helicopter Association International Safety Awards and an "Accident Free" award from Petronas Carigali.