We wish to announce that Mudajaya Corporation Berhad (“MCB”), a wholly-owned subsidiary of the Company, has been served with a Writ of Summons and Statement of Claim, both dated 22 October 2021, and which have been filed in the High Court of Kuala Lumpur by Crest Worldwide Resources Sdn Bhd (“CWRSB”) (in liquidation).  The said Writ of Summons together with the Statement of Claim, were served on MCB’s solicitors on 27 October 2021.

A.    SALIENT BACKGROUND FACTS

1. By way of a Letter of Award dated 19 July 2007, CWRSB engaged MCB to construct 1 block of 44-Storey Service Apartment (278 units), 1 block of 26-Storey Office Tower with 5-Storey Podium and 3 Levels of Basement Car Park on Lot 134, Section 44, Off Jalan Ampang, Persiaran Sultan Ismail, Kuala Lumpur known as the Crest Jalan Sultan Ismail (“the Project”).
2. Subsequently, the parties entered into various agreements, the main purpose of which was to enable MCB to assist CWRSB with its financial difficulties and to extend the relevant completion date of the Project.
3. These ultimately culminated in the execution of the Final Settlement Agreement dated 6 April 2016 (“FSA”), the purpose of which was to complete the construction of the Project.  Pursuant to Clause 6 of the FSA, it was agreed between CWRSB and MCB that the Project was to be completed by 6 December 2016 (“Final Completion Date”).
4. By way of Certificate of Practical Completion dated 11 November 2016, CWRSB’s Architect certified that the works for the Project were practically completed on 11 November 2016, that is, before the Final Completion Date.
5. Subsequently, the Certificate of Completion and Compliance dated 16 October 2017 was issued by the Kuala Lumpur City Council certifying that the building was fit to be occupied.

B.   CLAIMS UNDER THE CIVIL SUIT

       Amongst others, the main claims by CWRSB are as follows:-

      (a) Judgement in the sum of RM31,680,000.00 being liquidated damages payable from 7 December 2016 to 1 November 2017;

      (b) Judgement in the sum of RM4,604,067.40 being the amount to be refunded to the Plaintiff (CWRSB); and

      (c) Any further or other relief that is deemed fit and proper to be awarded by the Honourable Court.

 C.   CASE MANAGEMENT

       This case was fixed for e-review on 5 November 2021 and the Court has given the following directions:-

       (i) Defendant (MCB) to file its Defence by 24 November 2021;

      (ii) Plaintiff (CWRSB) to file its Reply to Defence by 8 December 2021; and

     (iii) The next case management (e-review) is fixed on 9 December 2021.

D.    CONCLUSION

The solicitors of MCB consider that MCB has a reasonably good prospect of successfully defending this civil suit filed by CWRSB.   Accordingly, the Company envisages this civil suit filed by CWRSB will have minimal impact to the financial position of the Group. 

The Company will make the necessary announcement to Bursa Malaysia Securities Berhad as and when there is a material development on the matter.

This announcement is dated 10 November 2021.