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MATERIAL LITIGATION GDB HOLDINGS BERHAD ("GDB" OR "THE COMPANY") High Court of Malaya at Kuala Lumpur Originating Summons No. WA-24NCC (ARB) -57-12/2022 Syarikat Ong Yoke Lin Sdn. Bhd. vs Grand Dynamic Builders Sdn. Bhd., a wholly-owned subsidiary of the Company

GDB HOLDINGS BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
GDB HOLDINGS BERHAD ("GDB" OR "THE COMPANY")

High Court of Malaya at Kuala Lumpur Originating Summons No. WA-24NCC (ARB) -57-12/2022

Syarikat Ong Yoke Lin Sdn. Bhd. vs Grand Dynamic Builders Sdn. Bhd., a wholly-owned subsidiary of the Company
(The definitions used in this announcement shall have the same meanings as that used in the announcement made on 23 December 2022 (“Announcement”) unless stated otherwise.)

We refer to the Announcement and the email from Bursa Malaysia Securities Berhad (“Bursa Securities”) dated 27 December 2022 requesting for the following additional information for public release: -

Grand Dynamic Builders Sdn. Bhd., a wholly-owned subsidiary of the Company (“GDBSB”) is a major subsidiary of the Company pursuant to Chapter 1 of the Main Market Listing Requirements of Bursa Securities.

GDBSB had issued a Letter of Acceptance dated 3 February 2021 to appoint Syarikat Ong Yoke Lin Sdn. Bhd. (“the Plaintiff”) as a nominated sub-contractor for a nominated sub-contract sum of RM39,823,291.48 (“Sub-Contract”).

Under the Sub-Contract, the Plaintiff is to provide a bank guarantee as a performance bond equivalent to five percent (5%) of the Sub-Contract sum amounting to RM1,991,164.57 (“Bank Guarantee”) which the Plaintiff had provided to GDBSB the Bank Guarantee issued by Standard Chartered Bank Malaysia Berhad for a validity period until 23 December 2023.

The gross certified work performed by the Plaintiff for period ended August 2022 based on the Architect’s interim certificate dated 5 October 2022 is 41.03%.

Further information on the Originating Summons, ex-parte Notice of Application and Affidavit-in-Support mentioned under items 2(a), (b) and (c) of the announcement dated 23 December 2022 is as follows:-

(a)  Originating Summons was filed in the High Court (Commercial Division) by the Plaintiff made pursuant to the Arbitration Act 2005, Rules of Court 2012 and the Specific Relief Act 1950.

(b)  ex-parte Notice of Application was filed by the Plaintiff seeking a Court Order for an interim injunction to restrain GDBSB from calling on the Bank Guarantee for the Plaintiff’s performance of the Sub-Contract pending disposal of the Originating Summons.

(c)  the Affidavit-in-Support to the ex-parte Notice of Application with the Plaintiff’s grounds as follows:-

     (i)  GDBSB was contractually obliged to make payments under the Sub-Contract to the sum of RM8,794,676.94 and GDBSB has failed, refused and/or neglected to make such payments;

     (ii)  GDBSB without reasonable cause instructed the Plaintiff to suspend the Sub-Contract Works for more than three (3) months causing the Plaintiff to sustain recurring costs in the sum of RM20,166,695.33;

     (iii)  there is a real risk and likelihood GDBSB will call on the Bank Guarantee on the basis GDBSB is disputing the Plaintiff’s action of self-determination of the Sub-Contract;

     (iv)  the injunction sought is to maintain status quo pending full and final determination of Arbitration Proceedings;

and further the Plaintiff undertakes to file a Notice of Arbitration within fourteen (14) days from the Order of the inter partes hearing as well as the Plaintiff is prepared to provide an undertaking as to damages if the injunction is allowed.

This announcement is dated 28 December 2022.





Announcement Info

Company Name GDB HOLDINGS BERHAD
Stock Name GDB
Date Announced 28 Dec 2022
Category General Announcement for PLC
Reference Number GA1-28122022-00042