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KUALA LUMPUR: Grabcar is being sued for RM100 million by the Malaysian Association of Taxi, Car Rentals, Limousines and Airport Taxis, allegedly for denying its 10,000 members their livelihood and creating unfair competition.
The lawsuit of 15 association officials was filed through Messrs. R. Kengadharan & Co in the Superior Court here on December 4.
They said that the activities of the defendant, Grabcar Sdn Bhd, of operating an electronic calling service without a valid license in the country between 2014 and 2017 amounted to “stealing his business”.
In the statement of claim made available to the FMT, the plaintiffs said that Grabcar’s activities violated the Federal Constitution, the Competition Law of 2010 and the amended Road Transportation Law of 2012.
The plaintiffs said the defendant violated the provisions of the Transportation Act by submitting a misleading statement that Grabcar was qualified to operate an online public transportation service without approval from the Department of Highway Transportation.
The plaintiffs further said that the email service did not receive any exemptions under the Competition Act to carry out the service between May 16, 2014 and July 27, 2017.
“The action of the accused violates the right to subsistence, the rights and the interests of the taxi drivers,” they said.
The plaintiffs are seeking compensation for damages, general, aggravated, exemplary and punitive damages in the amount of RM 100 million under section 75 of the Contracts Act 1950.
Kengadharan, who appeared for the plaintiffs during the handling of the case today before the Deputy Clerk of the High Court, Nurliana Ismail, said the defendant was ordered to present his defense before January 14.
Attorney Kwong Chiew Ee of Messrs. Rahmat Lim & Partners appeared for Grabcar.
Kengadahran said that Nurliana also ordered the plaintiffs to submit any responses to the defense statement by January 28. She set the next case administration for February 11.
