Annual Report
2015
|
DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
141
38. Litigation
On 22 June 2011, a former associate, PPB, which is now a subsidiary, filed a suit in the High Court against
Tengku Dato’ Ibrahim Petra bin Tengku Indra Petra, Wong Fook Heng, Tiong Young Kong, Lee Mee Jiong,
TA Securities Holdings Berhad (“TASB”), Yap Hock Heng and TA First Credit Sdn Bhd (“TAFC”) to claim
for losses and damages suffered by the Company in respect of, inter alia, the divestment of 10,500,000
ordinary shares of RM0.50 each in Petra Energy Berhad (“PEB”) by PPB to the Parties on 10 September 2009
and the divestment of 48,800,000 ordinary shares of RM0.50 each in PEB by PPB as conducted by the TA
Securities Holdings Berhad and Yap Hock Heng on 11 December 2009.
This suit is mounted on several causes of action, including breaches of fiduciary and statutory duties,
accessory liability and conspiracy and PPB is seeking from the High Court, various declaratory reliefs,
damages (general and/or fiduciary and/or aggravated) to be assessed, interest, account and
disgorgement and costs.
On 7 September 2012, PPB filed notices of discontinuance pursuant to a negotiated settlement with TASB,
Yap Hock Heng and TAFC, with no admission of liability and with no liberty to file afresh. In this connection,
TASB had also agreed to discontinue their suit against PPB in relation to a claim of approximately RM2.796
million as placement fees due to them (“TASB Suit”) with no admission of liability and with no liberty to file
afresh. With the discontinuance of the TASB Suit, PPB had reversed the provisions made earlier.
The trial at the High Court ended on 26 April 2013 and oral submissions by respective counsels were made
on 21 November 2013 and 28 November 2013. On 21 March 2014, PPB announced that the High Court
gave its decision that PPB was unsuccessful in the Suit. On 17 April 2014, PPB filed a Notice of Appeal to the
Court of Appeal on the decision of the Suit.
On 9 September 2014, PPB announced that the High Court has made a decision on costs and ordered
PPB to pay the Defendant Parties, a total cost of RM841,731. The High Court has also ordered Tengku
Dato’ Ibrahim Petra bin Tengku Indra Petra to pay PPB the sum of RM192,780 with post judgement interest
calculated at 5% per annum starting from 22 March 2014 (“Judgement Sum”). The earnings of the Group
for the year ended 31 December 2014 was reduced by the differential sum of the total cost payable and
the judgement sum receivable.
On 24 September 2014, PPB announced that the Court of Appeal has fixed the hearing of the Appeal on
2 December 2014. This was subsequently adjourned and fixed to be heard on 11 March 2015.
The Appeal was heard on 11 March 2015 and 25 March 2015.
On 25 August 2015, PPB announced that the Court of Appeal has made the following judgements:-
(a) PPB’s appeal is allowed with costs against Tengku Dato’ Ibrahim Petra bin Tengku Indra Petra, Wong
Fook Heng and Tiong Young Kong;
(b) PPB’s appeal is dismissed with costs against Lee Mee Jiong; and
(c) Tengku Dato’ Ibrahim Petra bin Tengku Indra Petra’s cross appeal is dismissed with costs.
On 25 September 2015, PPB announced that PPB had on 23 September 2015 received the Notices of
Motion from the solicitors of Tengku Dato’ Ibrahim bin Tengku Indra Petra and Wong Fook Heng & Tiong
Young Kong respectively, to apply for leave to appeal to the Federal Court against the decision of the
Court of Appeal on 25 August 2015.
Notes to the
Financial Statements
(cont’d)
