1. INTRODUCTION
The Company wishes to inform that Syarikat Ong Yoke Lin Sdn. Bhd. (“the Plaintiff”) had on 22 December 2022 via its solicitors, Messrs. Atma Singh Veriah & Co., filed a court action at the High Court of Malaya at Kuala Lumpur against Grand Dynamic Builders Sdn. Bhd., a wholly-owned subsidiary of the Company (“GDBSB” or “the Defendant”).
2. BACKGROUND
The Plaintiff, a company incorporated in Malaysia is the Nominated Sub-Contractor for the supply, delivery, installation, testing and commissioning of air conditioning, mechanical ventilation and building management system for the 8 Conlay project (hereinafter referred to as “the Sub-Contract”).
The Plaintiff has previously provided a bank guarantee to secure the performance of the Plaintiff under the Sub-Contract (“Bank Guarantee”).
On 22 December 2022, GDBSB has received via the Plaintiff’s solicitors a letter which enclosed the following documents:-
(a) An Originating Summons dated 21 December 2022 (“OS”);
(b) An ex-parte Notice of Application dated 21 December 2022;
(c) An Affidavit in Support affirmed on 21 December 2022; and
(d) A Court Order from Kuala Lumpur High Court for an ex-parte interim injunctions to forthwith restrain GDBSB from calling on a Bank Guarantee for the Plaintiff's performance of the Sub-Contract pending the disposal of the OS.
In this regard, the High Court of Malaya at Kuala Lumpur has fixed a hearing date on 4 January 2023 for the disposal of the OS.
3. PARTICULAR OF INJUNCTIVE RELIEF UNDER THE OS:-
The injunctive relief sought in the OS amongst others, to forthwith restrain GDBSB, whether by themselves, or the directors, managers, officers, employees, servants, agents, shareholders or otherwise from making and/or issuing and/or calling on a demand pursuant to the Bank Guarantee pending full and final disposal of the arbitral proceedings that the Plaintiff shall commence against GDBSB.
4. THE FINANCIAL AND OPERATIONAL IMPACT OF THE OS
Apart from the potential costs which may be awarded against GDBSB and the corresponding legal costs, other costs in relation thereto have yet to be determined.
5. STEPS TAKEN AND PROPOSED TO BE TAKEN BY GDBSB IN RESPECT OF THE OS
GDBSB will obtain necessary legal advice from its solicitors with regards to the above OS filed by the Plaintiff.
6. FURTHER ANNOUNCEMENT
Further announcement will be made to Bursa Malaysia Securities Berhad as and when there are material developments on the above matter.
This announcement is dated 23 December 2022.