MTDACPI

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MATERIAL LITIGATION MTD ACPI ENGINEERING BERHAD ("MTD ACPI" or the "Company") (1) SHAH ALAM HIGH COURT ORIGINATING SUMMONS NO. BA-24C-36-05/2020; AND (2) SHAH ALAM HIGH COURT ORIGINATING SUMMONS NO. BA-24C-41-05/2020 BY SN AKMIDA HOLDING SDN BHD AGAINST MTD CONSTRUCTION SDN BHD

MTD ACPI ENGINEERING BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
MTD ACPI ENGINEERING BERHAD ("MTD ACPI" or the "Company")
(1)	SHAH ALAM HIGH COURT ORIGINATING SUMMONS NO. BA-24C-36-05/2020; AND
(2)	SHAH ALAM HIGH COURT ORIGINATING SUMMONS NO. BA-24C-41-05/2020
BY SN AKMIDA HOLDING SDN BHD AGAINST MTD CONSTRUCTION SDN BHD

We refer to our announcement dated 21 July 2020 in relation to the above matter.

 

For consistency, the abbreviations used hereinafter throughout this announcement shall have the same meaning as defined in the preceding announcement unless stated otherwise.

 

MTD ACPI wishes to announce that the Court had on 1 September 2020 ordered as follows:-

 

(1) Both the Suit No. 36 and Suit No. 41 for injunction by the Plaintiff are dismissed;

(2) Costs of RM18,000.00 are awarded in favour of MTDC; and

(3) An ad interim Erinford Injunction is granted pending the filing of a formal notice of application for the same by the Plaintiff,

 

(“Order”).

 

The effect of the Order is that MTDC’s calls on the Performance Bond and Advance Payment Guarantee are valid and not unconscionable.

 

The Plaintiff has expressed its intention to appeal against the Order, hence the Court granted an ad interim Erinford Injunction, temporarily staying the Order pending the hearing and disposal of the Erinford Injunction application.

 

The Court further gives directions as follows:-

 

(a) Plaintiff to file its notice of appeal and notice of application for Erinford Injunction by 1 October 2020;

(b) MTDC to file its application for assessment of damages by 1 October 2020; and

(c) Case management / hearing of the Erinford Injunction is fixed on 1 October 2020.

 

The Court has, in rendering the Order, found that the interim injunction was wrongly granted against MTDC and therefore MTDC is entitled to damages, due to the non-payment by Alliance Islamic Bank Berhad against the calling of the Performance Bond and the Advance Payment Guarantee.

 

MTDC is assessing with its solicitors the damages to be submitted in its application for assessment of damages for the non-payment of the Performance Bond and the Advance Payment Guarantee due to the interim injunction.

 

MTD ACPI is of the view that save for the damages which will be assessed and awarded by the Court in favour of MTDC, the litigation will not result in any immediate material financial impact on the Company and the Group as at the date of this announcement. 

 

MTD ACPI will make further announcement as and when there is any material development on the above matter.

 

This announcement is dated 2 September 2020.






Announcement Info

Company Name MTD ACPI ENGINEERING BERHAD
Stock Name MTDACPI
Date Announced 02 Sep 2020
Category General Announcement for PLC
Reference Number GA1-02092020-00076