CABNET

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MATERIAL LITIGATION (1)Shah Alam High Court (Construction Court)Suit No. BA-24C-5-01/2019 between Cabnet Systems (M) Sdn Bhd (Cabnet Systems)(Plaintiff),Dekad Kaliber Sdn Bhd (Dekad Kaliber)(1st Defendant) and Rimarisan Sdn Bhd (Rimarisan)(2nd Defendant)(Construction Court Suit);and (2)Shah Alam High Court (Civil Division)Suit No. BA-22NCvC-28-01/2019 between Cabnet Systems (Plaintiff), Dekad Kaliber (1st Defendant) and Rimarisan (2nd Defendant)(Civil Court Suit)

CABNET HOLDINGS BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
(1)Shah Alam High Court (Construction Court)Suit No. BA-24C-5-01/2019 between Cabnet Systems (M) Sdn Bhd (Cabnet Systems)(Plaintiff),Dekad Kaliber Sdn Bhd (Dekad Kaliber)(1st Defendant) and Rimarisan Sdn Bhd (Rimarisan)(2nd Defendant)(Construction Court Suit);and

(2)Shah Alam High Court (Civil Division)Suit No. BA-22NCvC-28-01/2019 between Cabnet Systems (Plaintiff), Dekad Kaliber (1st Defendant) and Rimarisan (2nd Defendant)(Civil Court Suit)

We refer to the announcements issued on 25 February 2019, 6 March 2019, 9 April 2019, 18 April 2019, 3 May 2019, 23 May 2019, 3 June 2019, 21 June 2019, 31 July 2019, 20 August 2019, 8 October 2019, 20 December 2019, 21 January 2020 and 17 February 2020 in relation to the abovesaid Construction Court Suit and Civil Court Suit (“Announcements”). Unless otherwise stated, the terms used herein shall have the same meanings stated in the Announcements.

 

The Company wishes to announce the following updates based on the decision held on 26 February 2020 for the Construction Court Suit and case management held on 24 February 2020 for the Civil Court Suit.

 

Construction Court Suit

 

The case managements were held on 5 March 2019, 29 March 2019, 4 April 2019, 17 April 2019, 2 May 2019, 23 May 2019, 31 May 2019, 20 June 2019, 20 August 2019, 20 January 2020, 17 February 2020 as well as 26 February 2020 and the hearings were held on 31 May 2019, 19 June 2019, 7 October 2019 and 18 December 2019.

 

1. The 1st Defendant (i.e. Dekad Kaliber) had filed for Extension of time (“EOT”) to allow its out of time affidavit to be accepted. In order to save time and cost, the Plaintiff had decided to request for cost instead of replying affidavit before the judge at the date of the hearing of the matter. On 2 May 2019, the Plaintiff had no objection on the EOT subject to cost which will be ventilated before the Judge. The Court then directed for the application for EOT to be heard on the same date as the hearing of the Originating Summons (“OS”), i.e. on 20 August 2019. The said hearing had changed to case management due to change of Judge and the new Judge will hear the matter. The Court has directed the parties to file in further submissions in reply by 10 September 2019. Following the hearing on 7 October 2019, the Court has decided that the Letter of Undertaking given by the 1st Defendant is a sufficient undertaking under the law and creates a separate and independent obligation on the 1st Defendant to make direct payments to the Plaintiff. On 18 December 2019, the Court ruled that the 1st Defendant was liable for the undertaking and is to pay a cost amounting to RM5,000 with the interest of 5% from the date of the Order until full and final settlement to the Plaintiff due to its failure to provide a copy of the Novation Agreement when requested by the Plaintiff's solicitors. 

 

2. The 2nd Defendant (i.e. Rimarisan) had filed for striking out and EOT applications to reply the Plaintiff’s affidavit. On 19 June 2019, the 2nd Defendant has withdrawn its striking out application and the Court has allowed 2nd Defendant to file an affidavit in reply to the Plaintiff’s OS with no order to cost.

 

3. By way of OS, the case management for Construction Court Suit was conducted on 31 May 2019. Considering the fact that the 2nd Defendant’s striking out and EOT application have not been heard, the Court was unable to fix a hearing date for the Plaintiff’s OS. On 16 August 2019, the hearing for the OS which was initially fixed on 20 August 2019 is now changed to case management due to change of Judge and the new Judge will hear the matter. The Court has directed the parties to file in further submissions in reply by 10 September 2019. Following the hearing on 7 October 2019, the Court has decided the Plaintiff’s application under Section 30 CIPAA was successful and the 2nd Defendant has a mandatory obligation to pay the Plaintiff. Further to the hearing on 18 December 2019, the Court has ruled that the 2nd Defendant, as the principal of Synergycentric, is liable by virtue of the Novation Agreement and that the 2nd Defendant has a mandatory obligation to pay the Adjudicated Sum of RM1,077,326.36 and cost of RM5,000 with interest of 5% from the date of the Order until full and final settlement. During the hearing on 18 December 2019, the 2nd Defendant applied for an interim stay pending the filing of its application and the High Court granted an interim stay that the deadline will lapse on 20 January 2020. On 15 January 2020, the 2nd Defendant made a formal application to stay of execution for its appeal. On 20 January 2020, the Judge has granted extension of the interim stay until 26 February 2020. Further to the extension of the interim stay, on 26 February 2020 the Judge decided to grant a conditional stay until the disposal of 2nd Defendant’s appeal. The condition was to 2nd Defendant to open a joint solicitors account and deposit the sum of RM1,204,547.60 into the said account on or before 8 April 2020. In the event such sum has not been deposited, the conditional stay will lapse on 8 April 2020. 

 

4. On 20 December 2019, the 2nd Defendant proceeded to file an appeal on the decision ruled by Judge on 18 December 2019 and the case management for the said appeal is fixed on 17 February 2020. On 17 January 2020, the Plaintiff then filed an appeal on the part of the Judge’s decision where only the Adjudicated Sum is to be paid excluding the Adjudication cost of RM44,000.90 and the case management is fixed on 2 March 2020. Following the case management held on 17 February 2020, the Court then set a further case management date on 31 March 2020 for the 2nd Defendant’s filing of the Record of Appeal.

 

 

Civil Court Suit

 

The case managements were held on 18 February 2019, 4 April 2019, 17 April 2019, 8 January 2020 and 24 February 2020, the hearings were held on 21 May 2019 and 29 July 2019 as well as the trial was held on 16 August 2019.

 

1. The hearing for the 1st Defendant's Striking Out for the Writ Action was held on 21 May 2019. On 16 August 2019, the Court decided that the 1st Defendant's application to strike out was dismissed with cost of RM5,000.00 to be paid by the 1st Defendant. Further to the Court decision on 16 August 2019, the 1st Defendant appealed on the said decision by way of Notice of Appeal dated 4 September 2019 and parties attended the online e-review for case managements. On 18 October 2019, the Record of Appeal was filed and the Supplementary Record of Appeal was filed on 12 November 2019.The case management held on 24 February 2020, the Court has directed parties to file the following by 8 July 2020:-

  • Common Core Bundle
  • Common Chronology of Facts
  • Written Submission and Bundle of Authority
  • Executive Summary of maximum 5 pages

A further case management date is fixed on 9 July 2020 to ensure compliance with the above and the hearing for the appeal is fixed on 22 July 2020..

 

2. The Plaintiff had filed its reply to oppose the 2nd Defendant's amendment application on 3 May 2019 and the 2nd Defendant had then filed its Amendment of Defence on 24 May 2019. The hearing was fixed on 29 July 2019. The Plaintiff had agreed to the 2nd Defendant’s amendments with request for cost. The Court has allowed the 2nd Defendant’s amendments and cost amounting to RM2,000.00 to be paid by the 2nd Defendant to the Plaintiff within thirty (30) days.

 

3. The trials which was initially fixed on 8 January 2020 is now changed to case management due to change of Judge and the interlocutory applications filed by both the Defendants. On 3 January 2020, the 1st Defendant had filed for a stay pending appeal application, whereas the 2nd Defendant filed a striking out application on 24 December 2019. In light of the 1st Defendant's stay pending appeal application and the 2nd Defendant's striking out, the Court has fixed a hearing on 6 April 2020 to determine both the 1st and 2nd Defendant's applications. After which, the Court will only determine the trial dates after the hearing on 6 April 2020.

 

Any further material developments to the abovementioned Construction Court Suit and the Civil Court Suit will be announced as and when these developments materialise.

 

This announcement is dated 28 February 2020.






Announcement Info

Company Name CABNET HOLDINGS BERHAD
Stock Name CABNET
Date Announced 28 Feb 2020
Category General Announcement for PLC
Reference Number GA1-28022020-00077