Victor Chin Renews Bid to Testify by Video from China in RM49.85m M Jets Lawsuit

Businessman Victor Chin Boon Long has renewed his application to give evidence remotely from China in a RM49.85 million lawsuit over the management and control of air cargo operator M Jets International Sdn Bhd. The application, citing medical grounds, was filed on Thursday (Oct 29), ahead of the resumption of the defence's case on Monday (Nov 2).

Filed through Messrs KH Wong & Co, it asks the Kuala Lumpur High Court for permission to testify by video conference from Zhuhai, Guangdong, on the claim that he is medically unfit to travel. It also proposes that Chin testify first rather than last, as originally planned.

This is Chin's second attempt. His earlier request in April was rejected by High Court judge Leong Wai Hong, who ruled that a letter from his lawyers was insufficient and that a formal application supported by a sworn affidavit was required. That application cited concerns for Chin's safety if he returned to Malaysia, which the court found insufficiently substantiated.

Chin is the first defendant in a countersuit filed in July 2023 by former M Jets directors Gunasekar Mariappan and Philip Phang Kin Ming. It followed an April 2023 lawsuit by MMAG Holdings Bhd against the pair, seeking RM23.17 million in damages over alleged breaches of fiduciary duties. Gunasekar and Phang completed presenting their case in April; Gunasekar maintained that Chin exercised decision-making authority over the venture, though the defence challenged his account of Chin's role. Mediation talks on Aug 24 failed to resolve the dispute because several parties were absent.

The dispute stems from a joint venture formed in November 2020 to turn M Jets from a private jet charter company into an air cargo operator. MMAG Holdings was to acquire an 80% stake and invest RM46 million, while the group of Gunasekar and Phang, through JT Aerotech Solutions Sdn Bhd, would hold 20% and invest RM10 million.

The pair say they were responsible for running the business, including securing aircraft leases, renewing licences and managing fuel arrangements. They allege that about RM20 million in additional funding needed for expansion in late 2021 and early 2022 was not provided.

Conversions of charter operators into cargo carriers depend on capital arriving on schedule, because leases, licence renewals and fuel arrangements all need funding before revenue appears. When the investor holds the majority stake and the operating partners hold the minority, a funding gap can turn into a fight over who was running the company. That is the question both sides in this case are contesting.

Chin's evidence matters because Gunasekar has testified that Chin held decision-making authority, and the defence disputes that account. A witness who gives evidence remotely, and who has so far been absent from the Malaysian proceedings, changes how directly his version can be tested in court.

The next milestone is the defence case resuming on Nov 2, when the court's handling of the video-testimony application, and the proposed change to the order of witnesses, should become clear.