Pursuant to Paragraph 9.04(f) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Company wishes to announce that its wholly-owned subsidiary, Jetson Construction Sdn. Bhd. (“JCSB”) has taken legal proceedings against Skyscape Industries Sdn. Bhd. (“Skyscape”) vide an originating summons no. WA-24C-266-12/2019 dated 6 December 2019 (“Originating Summons”) filed at the High Court of Malaya at Kuala Lumpur.
2. Circumstances leading to the filing of the Originating Summons against Skyscape
By a contract in writing entered into by JCSB and Skyscape (collectively referred to as “the Parties”) on 2 June 2017, JCSB engaged Skyscape as a second tier sub-contractor for the construction and completion of the site clearing works, earthworks, drainage works, roadworks and RC structural works (“the Works”) for Project Penswastaan Lebuhraya Bertingkat Sungai Besi-Ulu Kelang Package CB5 - Construction and Completion of the Mainline and other associated works from CH21200 to CH24000 (“the Project”) in consideration of a contract sum of RM91,900,000/- (“Sub-Contract”).
JCSB had earlier entered into a sub-contract with the main contractor for the Project, BBSB Holdings Sdn. Bhd. as a first-tier sub-contractor for the Project.
Skyscape’s Claim under CIPAA
Skyscape served a payment claim on JCSB pursuant to Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) wherein Skyscape claimed for a sum of RM478,959.33 which Skyscape alleged to be payments due pursuant to two (2) payment certificates under the Sub-Contract.
Pursuant to the adjudication decision by Ms. Low Pei Voon dated 14 October 2019 under Adjudication Reference No. AIAC/D/DJ-2570-2019 (“Adjudication Decision”), JCSB is to pay the following sums to Skyscape on or before 28 October 2019:-
i) Adjudicated sum in the sum of RM478,959.33;
ii) Total adjudicated proceeding costs in the sum of RM70,370.75; and
iii) 5% interest in the sum of RM23,882.35.
Notice of Application to Stay the Adjudication Decision dated 14 October 2019
JCSB had on 6 December 2019 filed an Originating Summons to set aside the Adjudication Decision. The matter has been fixed for case management on 23 December 2019.
JCSB had on 10 December 2019 filed an application to stay the Adjudication Decision with a certificate of urgency with the following orders and the matter is now pending for a hearing date to be fixed:-
i) JCSB be granted leave by the High Court to stay the Adjudication Decision;
ii) Costs; and
iii) Such further order or relief as the High Court shall deem fit and proper.
3. Financial and Operational Impact of the Originating Summons
The Company does not anticipate any significant financial and operational impact to the Company and its subsidiaries subsequent to the filing of the Originating Summons.
4. Expected Losses, if any, arising from the Originating Summons
The Company is of the view that there will not be any losses arising from the Originating Summons save for the legal fees that may be incurred in relation to legal representation for JCSB in the immediate future.
The Company will make the necessary announcements once there is any material development in relation to the above.
This announcement is dated 11 December 2019.