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MATERIAL LITIGATION IKHMAS JAYA GROUP BERHAD ("IJGB" OR "THE COMPANY") KUALA LUMPUR HIGH COURT SUIT NO: WA-22C-111-12/2019 IKHMAS JAYA SDN BHD vs ASM DEVELOPMENT SDN BHD

IKHMAS JAYA GROUP BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
IKHMAS JAYA GROUP BERHAD ("IJGB" OR "THE COMPANY") 

KUALA LUMPUR HIGH COURT SUIT NO: WA-22C-111-12/2019
IKHMAS JAYA SDN BHD vs ASM DEVELOPMENT SDN BHD

1.         INTRODUCTION

 

Further to the announcement dated 15 November 2019, the Board of Directors of IJGB wishes to announce that the Company was informed by the Solicitors of Ikhmas Jaya Sdn. Bhd. (“IJSB”), a wholly owned subsidiary of the Company that they had served a sealed copy of the Writ of Summons (“Writ”) and Statement of Claim (“SoC”) amounting to RM2,942,704.15 to ASM Development Sdn Bhd (“the Defendant”).

 

2.          DETAILS OF THE CIRCUMSTANCES LEADING TO THE FILING OF THE WRIT AND SOC

 

The Plaintiff had been appointed the Contractor via the Letter of Intent dated 28 November 2015 by the Defendant, for the project known as “Cadangan Pembangunan 39 Tingkat yang mengandungi 7 blok pangsapuri servis (4214 unit) iaitu : Blok A-29 Tingkat (678 unit), Blok B-29 Tingkat (618 unit), Blok C-29 Tingkat (560 unit), Blok D-29 Tingkat (678 unit), Blok E-29 Tingkat (618 unit), Blok F-29 Tingkat (560 unit), Blok G-29 Tingkat (502 unit), 8 Tingkat Podium Tempat Letak Kereta, 7 Tingkat Ruang Perniagaan (Aras 1-7), 1 Tingkat Aras Kemudahan (Aras 9), 4 Tingkat Tempat Letak Kereta (Aras LG1, basement 1, basement 2 dan basement 3) di atas Lot 36190, Mukim Petaling, Kuala Lumpur (“the Maju KL Project”).

 

The Plaintiff had also been appointed the Contractor via the Letter of Intent dated 14 December 2015 by the Defendant for the project known as “Cadangan Merobohkan Tempat Bangunan Tempat Letak Kereta 4 tingkat sedia ada dan Membina Semula Bangunan Perniagaan yang terdiri daripada Fasa 1, Pembangunan 9 Tingkat Podium yang mengandungi (I) 1 Tingkat Basement, (II) 2 Tingkat Ruang Perniagaan (Aras 1-2), (III) 6 Tingkat Podium Tempat Letak Kereta, (IV) 1 Tingkat Ruang Kemudahan (Aras 9), Fasa 2, Pembangunan 8 Tingkat (Aras 10-17), Fasa 3, Pembangunan 9 Tingkat Hotel yang mengandungi 198 bilik (Aras 10-18), di atas PT. 3824, Metro Centre, Bandar Tasik Selatan, Mukim Petaling, Batu 7 ½, Jalan Sungai Besi, Bandaraya, Kuala Lumpur (“The Station Hotel Project”).

 

One of the terms as contained in the Letter of Intent dated 14 December 2015 states that if the acceptance letter for the Station Hotel Project could not be issued and a formal contract could not be concluded between IJSB and the Defendant, IJSB would be required to complete the work at an agreed amount and the Defendant would have to pay for the work completed based on Quantum Meruit. IJSB will adopt the entire terms of the Letter of Intent in the interlocutory application and/or the full trial.

 

The Defendant had via their letter dated 15 December 2015, confirmed IJSB's appointment as Contractor and accordingly, IJSB had performed their work for the Station Hotel Project.

 

IJSB had presented to the Defendant, the valuation for the work carried out by IJSB for the Station Hotel Project which amounted to RM2,942,704.15.

 

The Quantity Surveyor appointed by the Defendant had via a letter dated 7 July 2017, certified that the work done by IJSB was amounted to RM29,583,764.69 which comprised of RM26,641,060.54 for the Maju KL Project and RM2,942,704.15 for the Station Hotel Project.  

 

Despite the certification made by the Quantity Surveyor that the value of the work done for the Station Hotel Project amounted to RM2,942,704.15 and the repeated demands made by IJSB, the Defendant had failed to pay IJSB.

 

3.        DETAILS OF THE CLAIM

 

IJSB made the following Claim against the Defendant:-

 

a)         the amount of RM2,942,704.15;        

b)         interest at the rate of 5% per annum on the amount of RM2,942,704.15 from the date of the action up to the date of judgment and interest at the rate of 5% per annum on the                  judgement sum from the date of judgement until the full and final settlement;

c)         costs; and

d)         such further or other relief as the Honourable Court may deem fit.

 

4.         FINANCIAL AND OPERATIONAL IMPACT

 

There is no significant financial and operational impact on the Group for the financial years ending 31 December 2019 and 31 December 2020.

 

5.          DIRECTORS’ AND MAJOR SHAREHOLDERS INTEREST

 

None of the Directors and/or Major Shareholders of IJGB and/or persons connected to them have any interest, direct or indirect in the Writ and SoC.

 

6.         STEPS TAKEN IN RESPECT OF THE WRIT AND SoC

 

Solicitors of IJSB have been instructed to take all the necessary steps to ensure that the rights and interests of IJSB is protected.

 

This announcement is dated 20 December 2019.






Announcement Info

Company Name IKHMAS JAYA GROUP BERHAD
Stock Name IKHMAS
Date Announced 20 Dec 2019
Category General Announcement for PLC
Reference Number GA1-20122019-00031