MySejahtera: Court grants P2 Asset Management's bid to amend statement of claim

KUALA LUMPUR - The High Court here today granted P2 Asset Management Sdn Bhd’s request to amend its statement of claim in its suit against Entomo Malaysia Sdn Bhd, Revolusi Asia Sdn Bhd and MYSJ Sdn Bhd over a dispute on the share sale agreement pertaining to MySejahtera application.

MYSJ counsel Razlan Hadri Zulkifli, who confirmed the matter, said the decision was delivered by Judge Datuk Ahmad Fairuz Zainol Abidin via email.

He said, the court also had dismissed the three companies (Entomo Malaysia, Revolusi Asia and MYSJ) applications to strike out P2 Asset Management’s application to amend the statement of claim.

"MYSJ has instructed us to appeal to the Court of Appeal,” the counsel said.

Based on the statement of claim, circa April 2020, Entomo Malaysia had submitted a proposal for a mobile application based solution to the ongoing Covid-19 crisis, using its software KPISOFT Software to develop a mobile application known as 'MySejahtera'.

The plaintiff (P2 Asset Management) said due to the success of the application, Entomo Malaysia no longer wants to offer the software and application on a CSR basis, and instead, it was determined to make business profits through the software and application.

The plaintiff said that on Oct 6, 2020, MYSJ entered into an agreement with Entomo Malaysia, which among others stated that Entomo Malaysia is to transfer the intellectual property of the application to MYSJ, would grant MYSJ the license for the software and for MYSJ to pay Entomo Malaysia sums totalling RM338.6 million, being the aggregate fees for the transfer of intellectual property of the App and the licensing fees for the software.

According to the plaintiff, circa November to December 2020, Entomo Malaysia had submitted a proposal and had written letters to the government, pleading the government to agree to a commercial model for the continued use of the App, by way of either a Public-Private partnership, or a service contract between the government and MYSJ.

The plaintiff added that at that material time, the government did not respond to the proposal and MYSJ would generate no income at all in the event that the government disagreed with the proposal.

"On Dec 31, 2020, Revolusi Asia entered into a share sale agreement (SSA) with the plaintiff where Revolusi would sell MYSJ shares to the plaintiff based on the terms of the agreement, among which the plaintiff has represented to Revolusi that it will facilitate to obtain a letter of award from the Government to MYSJ in respect of the Public-Private Partnership or the service contract commercial model for the continued use of the application.

"Revolusi Asia will also transfer an additional 3,579,237 units of MYSJ ordinary shares, representing a 10 per cent equity interest in MYSJ in favour of the plaintiff provided the plaintiff is not in material breach of any of the terms and conditions,” according to the statement of claim.

However, the plaintiff claimed that Entomo Malaysia and Revolusi Asia had wrongfully and with intent to injure the plaintiff by unlawful means, conspired and combined together to cause Revolusi’s breach of the SSA to the plaintiff’s detriment.

As such, the plaintiff, among others, is seeking a declaration that Entomo Malaysia and Revolusi Asia have committed a breach of contract and according to the plaintiff, Entomo Malaysia and/or Revolusi are jointly and/or severally liable to pay to the plaintiff a global sum of RM5 million as special, aggravated and/or exemplary damages, general damages to be assessed, interest, costs and other relief deemed fit by the court. - BERNAMA