29 Jul 2011

MATERIAL LITIGATION

Author: admin | Filed under: Announcement
Type

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Announcement
Subject

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MATERIAL LITIGATION

 

 
Description

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MESB BERHAD (“MESB” or “the Company”)
– Writ of Summons of Maintenance Engineering Sdn Bhd (“ME”), a wholly-owned subsidiary of the Company

 

   
 

 

Announcement Details/Table Section :Contents:

The Board of Directors of MESB wishes to announce that Maintenance Engineering Sdn Bhd (“ME”), a wholly-owned subsidiary of the Company, had been served with a Writ of Summons and Statement of Claim by the High Court of Kuala Lumpur on 27th July 2011.

 6. Steps taken and proposed to be taken by the Company in respect of the Writ of Summons

Announcement details:

 1. Date of presentation of the Writ of Summons and the date of the Writ of Summons served on ME

  ME (“Defendant”) had been served with a Writ of Summons on 27th July 2011 in relation to a claim filed by Zelleco Engineering Sdn Bhd (Co. No.:277451-U) (“ZESB / Plaintiff”) through a firm of lawyers acting on behalf of Plaintiff. The Writs of Summons was filed at the High Court of Kuala Lumpur on 5th July 2011.

  ME received the Writ of Summons on 27th July 2011.

 2. Particulars of claims under the Writ of Summons

  The Plaintiff’s claims against ME as the following amounts:

 (i) Outstanding amount of RM7,614,227.62;

 (ii) interest claimed at the rate of 1.5% per month on the principal amount of RM3,616,777.69 from 14th   December 2010 until the date of judgement;

(iii) interest claimed at the rate of 8% per month on the principal amount of RM3,616,777.69 from the date of judgement until the date of full settlement;

(iv) Cost; and

(v)  such further and/or other relief that this Honourable Court deems fit.

 3. Details of default or circumstances leading to the filing of the Writ of Summons

 (i) The Plaintiff had served a Notice dated 19 March 2010 pursuant to Section 218 of the Companies Act, 1965; whereby the announcement pertaining to the details of the Notice was released on 26th March 2010, 30th March 2010 and 1st April 2010.

 (ii) On 27th August 2010, the Company released an announcement that ME had received a letter dated 27 August 2010 from Messrs Hamzah Tan, the advocates & solicitors of ME in relation to the petition to wind-up ME, has been withdrawn by Zelleco Engineering Sdn Bhd (“Petitioner”) with no order as to costs. Consequently our application to strike out the Petition was withdrawn with no order as to costs. As such the petition is no longer valid and has been struck off by the Honourable Court and the parties are in the midst of preparing the order for the same.

(iii) On 21st January 2011, the Plaintif had sent a Letter of Demand to ME requesting for the payment of the Outstanding amount of RM7,897,450.42.

 (iv) The Plaintiff filed the Writ of Summons, after their demand for outstanding amount was rejected and denied by ME.

 4. Financial and Operational impact of the Writ of Summons on the Group

  i) Financial Impact

 There is no financial impact on the MESB Group.

  ii) Operational Impact

   The litigation will not have any operational impact on MESB Group.

 5. Expected losses to the Group, if any, arising from the Writ of Summons

 The potential losses, in the event that ME loses the case, would be RM1,400,000.00

 ME have requested for its solicitors to defend the said claim.

The Company will announce further developments on the above matter as and when necessary.

This announcement is dated 29 July 2011. 

 

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