MATERIAL LITIGATION - PESTECH INTERNATIONAL BERHAD - In the High Court Malaya at Shah Alam Originating Summons No. BA-24NCC-133-10/2023 served on CRSE Sdn. Bhd.

MATERIAL LITIGATION - PESTECH INTERNATIONAL BERHAD (PESTECH or the Company)
In the High Court Malaya at Shah Alam Originating Summons No. BA-24NCC-133-10/2023 served on CRSE Sdn. Bhd., an indirect wholly-owned subsidiary of PESTECH by Universal Cable (M) Berhad (Joint and Several Interim Liquidators appointed)

PESTECH INTERNATIONAL BERHAD

The Board of Directors of PESTECH wishes to announce that CRSE Sdn. Bhd. (“CRSE”), an indirect wholly-owned subsidiary of PESTECH, had on 23 October 2023, issued demands to Bangkok Bank Berhad (“BBB” or “2nd Defendant”) (“the Demand”) on both the Performance Bond in the sum of RM9,500,013.78 and the Retention Bond in the sum of RM4,750,006.89 (collectively referred to as “the Bonds”). The Bonds were issued in favour of CRSE pursuant to a Sub-Supply Contract entered into between Pembinaan Tajri Sdn. Bhd. and Universal Cable (M) Berhad (“UC”) dated 15 May 2018 (“Sub-Supply Contract”).  

The Demand was made on the ground that UC had breached its obligations under the Sub-Supply Contract.

CRSE had on 31 October 2023 received an Originating Summons No. BA-24NCC-133-10/2023 in the High Court of Malaya at Shah Alam dated 26 October 2023 filed by UC against CRSE as the 1st Defendant and BBB as the 2nd Defendant.

UC by way of the Originating Summons is seeking for the following orders and reliefs (“the Originating Summons”) against CRSE:-

1. A declaration that the Demand on the Performance Bond and Retention Bond are null and void;
2. An injunction that CRSE and/or its employees, servants, agents and nominees or otherwise howsoever be restrained from calling on the Performance Bond and/or the Retention Bond or receiving any monies thereunder from BBB;
3. General damages to be assessed; and
4. the cost to be borne by CRSE; and
5. Any such further or other orders deemed fit and appropriate by the Honourable Court.

Simultaneously, UC also filed an Ex-parte Injunction Application to:

1. Restrain CRSE from calling on the Performance Bond and/or the Retention Bond and/or receiving any monies from the 2nd Defendant pending determination of the Originating Summons;
2. That the 2nd Defendant be restrained from releasing any monies under the Performance Bond and/or the Retention Bond.
3. the cost to be borne by CRSE; and
4. Any such further or other orders deemed fit and appropriate by the Honourable Court.

(collectively referred to as “Ex-Parte Injunction Application”)

On 30 October 2023, the High Court allowed the Ex-Parte Injunction Application and the inter-parte hearing was fixed on 14 November 2023 (“the Ex-Parte Injunction Order”).   

On 14 November 2023, the hearing was converted to a case management. The Court has directed that parties are to file and exchange affidavits and fixed the matter for further case management on 7 December 2023. In the meantime, an ad-interim injunction has been granted by Court so that the Ex-parte Injunction Order will remain in effect pending the disposal of the inter-partes Injunction Application.

This announcement is dated 23 November 2023.