Bursa
Announcements

We refer to the previous announcements dated 9 October 2019 and 6 February 2020 in relation to the above matter. Unless otherwise stated, all terms used in this announcement shall have the same meaning as defined in the said announcements.

Following the Claim, Ekovest Construction Sdn Bhd ("ECSB") had on 13 February 2020 filed an application for stay of proceedings (“ECSB’s Stay Application”) to refer the Plaintiff and ECSB to arbitration, on the grounds that ECSB had on 3 July 2018 already commenced arbitration proceedings against the Plaintiff at the Asian International Arbitration Centre (“Arbitration”).

On 14 February 2020, the Company had also filed an application for stay of proceedings (“Company’s Stay Application”) pending the Arbitration and ECSB’s Stay Application, on the grounds that the Arbitration together with the earlier Third Party Proceeding commenced by the Plaintiff against ECSB would unduly cause confusion and unfairness in the event that the decisions of these on-going proceedings are contradictory.

On 30 July 2020, the Court had allowed ECSB’s Stay Application on condition that the Arbitration only be proceeded with after the resolution of the Plaintiff’s Claim against the Company. The Court decided that ECSB’s Stay Application must be allowed as the agreement between ECSB and the Plaintiff is not null, void, inoperative or incapable of being performed. However, the Court dismissed the Company’s Stay Application on the ground that there is no rare and compelling circumstances to warrant the Company’s Stay Application.

On 25 August 2020, the Company has filed its notice of application to appeal against the decision of the Court to dismiss the Company’s Stay Application, and ECSB had also filed its notice of application to appeal against the condition imposed by the Court in allowing ECSB’s Stay Application. The Company and ECSB have been advised that the Company’s Stay Application and also the ECSB’s Stay Application should be allowed given that the matters to be decided in the aforementioned proceedings are one of the same and that any contradiction in the decisions arising therefrom would unfairly prejudice the Plaintiff’s Claim against the Company and/or ECSB.

Further updates in respect of material development in relation to the matter above will be made from time to time.

 
This announcement is dated 26 August 2020.