General Announcement

13/04/2006

KL HIGH COURT SUIT NO.:.D6-22-177-2006 MALAYSIA BUILDING SOCIETY BERHAD (Company No. 9417-K) V TASJAYA DEVELOPMENT SDN BHD (Company No. 405251-K)

MALAYSIA BUILDING SOCIETY BERHAD

Type

Announcement
Subject
KL HIGH COURT SUIT NO.:.D6-22-177-2006
MALAYSIA BUILDING SOCIETY BERHAD (Company No. 9417-K)

V

TASJAYA DEVELOPMENT SDN BHD (Company No. 405251-K)

Contents :



The Company has filed the abovementioned suit against Tasjaya Development Sdn Bhd (the Defendant) for the recovery of loans outstanding amounting to RM102,378,883.32 as at 30 September 2005 together with interest and cost pursuant to a breach by the Defendant of the terms of a Loan Agreement dated 20 February 1997 and entered into between the Company and the Defendant. The Writ of Summons and Statement of Claim was served on the Defendant on 8 March 2006. On 15 Mach 2006 the Defendant had entered appearance to the suit. On 13 April 2006, the Defendant had served on the Companys Solicitors their Defence to the Companys suit as well as a Counterclaim. The Counterclaim is premised upon their allegation that the Company has breached the terms of a Joint Venture Agreement dated 11 May 1999 entered into by the Company, the Defendant and the Companys subsidiary, MBSB Development Sdn Bhd. The joint venture is in respect of a proposed mixed development project on the land held under Lot 945, Mukim of Semenyih and Lots 2427, 2476, 2477, 2647, 5167, 1931 Mukim of Kajang, District of Hulu Langat, Selangor Darul Ehsan. The parties have yet to proceed with the development of the Project. The Defendant has in its Counterclaim sought for the following reliefs from the Courts:-

(a) The sum of RM52,007,000.00 being loss of profit from the Project contemplated under the Joint Venture Agreement;

(b) The sum of RM14,682.36 being part payment for the purchase of several parcels of land in Kajang and the sum of RM4,931,460.00 being the compensation paid by the State Government directly to the Company for the acquisition of a portion of the Project Land;

(c) Damages for losses suffered by the Defendant as a result of claims made by third parties, consultants and contractors involved in the Joint Venture Project;

(d) Damages for loss of reputation;


(e) Interests;

(f) The cancellation/invalidation of the Charge and for the Project Land to be freed from restrictions and encumbrances by the Plaintiff; and


(g) Costs.

As the Defendants Counterclaim principally revolves around and duplicates their earlier claim against the Company and MBSB Development Sdn Bhd under KL High Court Suit No. S7-22-922-2004, whereby the Defendants claim against the Company was subsequently struck off by the Court on 28 September 2005, the Company has instructed their solicitors to apply to the Court to strike out the Defendants Counterclaim for being frivolous, vexatious and an abuse of process.


FINANCIAL AND OPERATIONAL IMPACT OF THE COUNTERCLAIM ON THE GROUP

A. FINANCIAL IMPACT
      The Company at the moment is seeking legal advice from its solicitors and are unable to determine the financial impact arising from the Counterclaim. Details of the financial impact will be forwarded in due course.


B. OPERATIONAL IMPACT ON THE GROUP
      The Company does not foresee any operational impact on the Group arising from the Counterclaim.




    Announcement Info

    Company NameMALAYSIA BUILDING SOCIETY BERHAD  
    Stock Name MBSB
    Date Announced13 Apr 2006  
    CategoryGeneral Announcement
    Reference NoMB-060413-62500

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