Material Litigation

We refer to our announcements on 18 October 2018, 19 October 2018, 17 July 2020 and 29 March 2021 in relation to the litigation involving Boustead Holdings Berhad (“BHB”) and its subsidiary Bakti Wira Development Sdn Bhd (“Bakti Wira”).

To recapitulate, BHB and its wholly-owned subsidiary Bakti Wira were on 16.10.2018 and 18.10.2018 respectively served with a Writ of Summons and Statement of Claim by one Deepak Jaikishan A/L Jaikishan Rewachand (“Plaintiff”). BHB was named the Third Defendant and Bakti Wira the Fourth Defendant in the Writ of Summons and Statement of Claim. BHB and Bakti Wira jointly filed an application on 17.12.2018 to strike out the Plaintiff’s Writ of Summons and Statement of Claim. The High Court at Kuala Lumpur allowed BHB and Bakti Wira’s striking out application on 17.7.2020.

The Plaintiff filed an appeal to the Court of Appeal against the High Court’s decision on 17.7.2020. The hearing of the said appeal has been fixed on 8.10.2021. On 25.3.2021, the Plaintiff filed a Notice of Motion dated 25.3.2021 for an Interim Injunction against BHB and Bakti Wira :

1. to restrain BHB and Bakti Wira from dealing with the lands which are part of the subject matter in this litigation; and
2. to restrain Bakti Wira from dealing with its shares held in Astacanggih Sdn Bhd.

The hearing of this Notice of Motion at the Court of Appeal was initially fixed on 21.5.2021. This hearing date was postponed to 30.6.2021 at the request of the Plaintiff’s counsel as the Plaintiff’s counsel was under self-quarantine.

The Company wishes to inform that the Plaintiff’s Notice of Motion was heard by the Court of Appeal on 30.6.2021. The Court of Appeal made the following orders upon hearing the Plaintiff’s Notice of Motion:

1. the Plaintiff’s application for injunction to restrain BHB and Bakti Wira from dealing with the lands which are part of the subject matter in this litigation is refused;
2. Bakti Wira is restrained from dealing with 3,799,999 of its shares held in Astacanggih Sdn Bhd until the disposal of the Plaintiff’s appeal on 8.10.2021 (the said 3,799,999 shares are equivalent to 19% of the total shareholding in Astancanggih Sdn Bhd);
3. The Plaintiff is to provide an undertaking as to damages to BHB and Bakti Wira; and
4. costs of the application is in the cause of the appeal.

The directors of both BHB and Bakti Wira believe that the Court of Appeal’s decision on 30.6.2021 has no material effect to the operations of BHB and Bakti Wira.

Further announcements will be made as the appeal progresses.

This announcement is dated 1 July 2021.