KUALA LUMPUR (April 29): Eco World Development Group Bhd’s wholly-owned subsidiary Hasrat Budi Sdn Bhd is suing Entomo Malaysia Sdn Bhd, Raveenderen Ramamoothie and MYSJ Sdn Bhd — the operator of the MySejahtera application — for allegedly failing to meet specific performance of a put option.

The property developer has filed a writ of summons and statement of claim against Entomo, Raveenderen and MYSJ at the High Court here on Friday (April 29).

In a bourse filing, EcoWorld said the claim seeks specific performance of the put option that requires Entomo and Raveenderen to purchase all of Hasrat Budi’s shares in MYSJ on or before April 28, 2022.

It added that MYSJ is named as a defendant in the suit in order to bind it and to give full effect to the specific performance sought by Hasrat Budi.

“This legal action is filed because Entomo and Raveenderen have not purchased all of Hasrat Budi’s shares in MYSJ by the due date following the put option exercised by Hasrat Budi earlier.

“This legal action is in addition and without prejudice to the existing legal actions filed by Hasrat Budi against, among others, the defendants as announced earlier and based on current assessment, it is not expected to have any material impact on the financial position and operations of the company,” EcoWorld added.

Prior to this suit, Hasrat Budi had also filed another claim against Entomo, Raveenderen and Revolusi Asia Sdn Bhd on April 18, for breach of certain representations and warranties provided by the defendants to Hasrat Budi under the share sale agreement inked on Aug 27, 2021.

Hasrat Budi is seeking to recover costs incurred totalling RM524,786.59 under the suit.

On April 5, EcoWorld announced that following the exercise of the put option, Hasrat Budi had a 10% stake in MYSJ and was entitled to one board seat in MYSJ. However, as an investor, Hasrat Budi is not involved in the management or day-to-day operations of MYSJ.

On that same day, it also announced that Hasrat Budi had filed an originating summons seeking the removal of tycoon Tan Sri Shahril Shamsuddin and Anuar Rozhan as directors of MYSJ. It said the legal action was filed to insist on Hasrat Budi's strict contractual rights pursuant to a shareholders' agreement in relation to its shareholding in MYSJ and it was not expected to have any material impact on the financial position of EcoWorld.

Responding to the suit, Shahril in an affidavit sighted by The Edge said his appointment as a director of MYSJ on Dec 6 last year was "valid and proper".

Entomo is the developer of the MySejahtera app and was formerly known as KPISoft (M) Sdn Bhd. It is 100% owned by Singapore-based Entomo Pte Ltd. Raveenderen is the co-founder and chief executive officer (CEO) of the company and Anuar its co-founder. The two of them and Shahril, the former group CEO of Sapura Energy Bhd, sit on the board of MYSJ.

Raveenderen and Anuar also hold stakes of 76% and 12% respectively in Revolusi Asia, which is the nominee of Entomo.

The company, which reportedly entered into a deal with MYSJ to transfer MySejahtera's intellectual rights and software licence to Entomo in 2020 for RM338.6 million, in turn holds an 81.43% stake in MYSJ.

Eco World closed unchanged at 96 sen on Friday, giving it a market capitalisation of RM2.83 billion.