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Statement Of Defence and Counter-claim Against KCSB Konsortium Sdn Bhd And Kausar Corporation Sdn Bhd

BackDec 10, 2009
Date Announced
:
10/12/2009  



Type
:
Announcement
Subject
:
MALAYSIA BUILDING SOCIETY BERHAD ("MBSB" or "THE COMPANY")
- STATEMENT OF DEFENCE AND COUNTER-CLAIM AGAINST KCSB KONSORTIUM SDN BHD AND KAUSAR CORPORATION SDN BHD

Contents
:
We wish to announce that the Company and its wholly owned subsidiary, MBSB Development Sdn Bhd ("MDSB") have filed a statement of defence and counter-claim against KCSB Konsortium Sdn Bhd ("KCSB Konsortium") and Kausar Corporation Sdn Bhd ("Kausar Corporation").

Announcement Details :

This is a dispute between the parties arising from a Joint Venture Project on a piece of land in Mukim Tebrau, Johor. An earlier suit was served on KCSB Konsortium and Kausar Corporation on 31 July 2003. The suit was subsequently withdrawn. KCSB Konsortium and Kausar Corporation have re-filed the suit against the Company and MDSB.


(a) The statement of defence and counter-claim

    The Company, in its defence and counterclaim, contends that KCSB Konsortium and Kausar Corporation have breached their contractual requirements, misrepresented material information to the Company, failed to disclose material information, and have conspired with the Company's former Chief Executive Officer, to carry out acts which are ultra vires and thus in breach of his fiduciary duties to the Company in relation to the Project. The statement of defence and counter-claim have been filed on 9 December 2009.
(b) The particulars of the claim
    The Company claims that the agreements pursuant to the transaction with KCSB Konsortium and Kausar Corporation are void and as such should be set aside and has further claimed damages amounting to RM59,449,426.20 from KCSB Konsortium and Kausar Corporation and also General Damages; interest and costs and such other relief as may be deemed appropriate.
(c) The details leading to the statement of defence and counter-claim
    On 31 July 2003, the Company had initiated a legal suit against KCSB Konsortium and Kausar Corporation. Subsequently, the parties sought to amicably resolve the matter and the suit was withdrawn. The parties however failed to agree to an amicable solution.

    KCSB Konsortium and Kausar Corporation have re-filed the suit against the Company and MDSB. They have sought judgment for the sum of RM220.4 million; general damages; an indemnity as to all costs and damages payable by KCSB Konsortium to its various sub-contractors and to the Government by way of liquidated and ascertained damages in relation to the Privatisation Agreement; that the Charges over the Johor Land executed by KCSB Konsortium in favour of the Company be discharged and the document of title be returned to KCSB Konsortium, and that the appointment of Definite Pure Sdn Bhd and its agents as the attorney for KCSB Konsortium pursuant to the Power of Attorney dated 3rd August 1999 to be revoked.
The Company has sought legal advice on the claim and the solicitors are of the opinion that the Company and MDSB have a valid defence and that there is a good chance of the counterclaim succeeding.

This announcement is dated 10 December 2009.