KUALA LUMPUR: An audit firm Monday failed in its bid to strike out Maju Institute of Educational Development’s (MIED) RM100mil suit against the firm, MIED chairman Datuk Seri S. Samy Vellu and seven MIED trustees over alleged mismanagement which it claimed caused the institute to incur financial losses.

High Court Judge Datuk Abdul Aziz Abdul Rahim dismissed Kumpulan Naga’s application after hearing submissions from the firm’s lawyer Jacob Rabindran and David Gurupatham and A. Vasanthi for MIED.

David told reporters that the judge held that as the audit company, it was obliged to explain to the company (MIED) how losses and discrepancies in the MIED’s accounts were not discovered from 1995 until 2009.

Vasanthi said the court had set Jan 11 for case management for the parties to meet in court to fix a trial date.

Following the decision, Kumpulan Naga remained the ninth defendant in the suit filed by MIED against Samy Vellu, Tan Sri M. Mahalingam, Tan Sri Dr T. Marimuthu, Tan Sri Dr S.K. Ampikaipakam, Datuk G. Palanivel, Tan Sri Dr Karnail Singh Nijhar, Tan Sri K. Kumaran and Tan Sri G. Vadiveloo.

In the suit, filed on July 5, this year, MIED claimed that all the defendants had breached fiduciary and statutory duties, and failed to discharge their responsibilities as trustees and auditors, which caused MIED to suffer huge losses.

It is also seeking an injunction to restrain Samy Vellu from continuing to helm the institute, that he (Samy Vellu) be stripped of his membership in MIED and for him to return all monies or profits made from MIED either by himself or through family members and close friends.

MIED is also seeking a court order to make Samy Vellu compensate all the financial losses incurred by the institute in the time he had administered MIED as its chairman.

MIED is also seeking special and general damages over the alleged losses, which it claimed totalled RM100mil.

MIED filed the writ of summons after High Court Judicial Commissioner Mah Weng Kwai on June 14, allowed an application by former MIC Youth chief A. Vigneswaran to name MIED as the plaintiff in its proposed suit against the trustees of MIED.

Vigneswaran, who is also a member of MIED, has sought the court’s permisssion to initiate the suit under Section 181A of the Companies Act 1965.

This section of the Act requires a company seeking to be a plaintiff in a suit to first get the court’s permission to do so.