Newsroom
Material Litigation
Type | Announcement |
Subject | MATERIAL LITIGATION |
Description |
KUALA LUMPUR HIGH COURT CIVIL NO. BA-22NCVC-128-03/2021 1, APPLE RAINBOW SDN. BHD. |
Hua Yang Berhad (“HYB”, the “Company” of the “Defendant”) wishes to announce that it had received a Writ of Summons and Statement of Claim (“Claim”) on 6 April 2021, served by the solicitors for Apple Rainbow Sdn Bhd, E-Hong Holdings Sdn Bhd, Wong Yoon Tzy and Bio-Energy Technology Sdn Bhd (the “Plaintiffs”). The Plaintiffs are seeking for the following reliefs:
- Special damages amounting to RM11,042,725.52;
- General damaged to be quantified by the Court;
- Interest of 5% per year on the said sum of RM11,042,724.52 to be calculated from the date of filing of the Claim until the date of full settlement;
- Cost; and
- Exemplary damages to be assessed by the Court.
As a background, HYB had on 27 December 2017 entered into an agreement Wong Ko Seen @ Wong Kow, Wong Yoon Tsy, Bio-Energy Technology Sdn Bhd, Ria Ketara Development Sdn Bhd, Apple Rainbow Sdn Bhd and E-Hong Holdings Sdn Bhd (the “Vendors”) to acquire 3,000,000 ordinary shares being 100% of the entire paid-up share capital of Kajang Heights Development Sdn Bhd (“KHDSB”) for a total cash consideration of RM70,000,000.00. The Company had given an undertaking to bear Real Property Gain Tax (“RPGT”) liabilities, if any that may be imposed on the Plaintiffs. On 11 September 2020, the Plaintiffs received an Assessment Notice from Inland Revenue Board on the outstanding RPGT of RM11,042,724.52 inclusive of penalty as regard to the Plaintiffs disposal of their shares in KHDSB to HYB.
Upon receiving the Claims, the Company had appointed Shearn Delamore & Co. (“SD”) to defend the Company. The Company has submitted its Defence and Counterclaim on 4 May 2021. The next case management has been fixed on 9 June 2021. SD opine that it was a misrepresentation by the Plaintiffs. Based on the legal advise, the Company will contest this Claims.
The Company will make further announcements from time to time in respect of any material development of this matter.
This announcement is made on 21 May 2021.
Announcement Info
Company Name | HUA YANG BERHAD |
Stock Name | HUAYANG |
Date Announced | 21 May 2021 |
Category | General Announcement for PLC |
Reference Number | GA1-21052021-00050 |