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Monday, May 9, 2011

RM1.2 billion suit against Malayan Banking

Bistari Land Sdn Bhdis claiming that the appointment of two persons as the receivers and administrators for the company's takeover by the bank had caused losses to it.

KUALA LUMPUR: A RM1.28 billion suit filed by a developer against Malayan Banking Berhad over the appointment of two individuals as the receivers and administrators for the company’s takeover will be heard at the High Court on Sept 21 and 22.

Judge Datin Zabariah Mohd Yusof set the date upon meeting parties in chambers when the case came up for management today.

On March 21, Bistari Land Sdn Bhd, filed the suit against the bank and the bank’s agents Gan Ah Tee and Mok Chew Yin, claiming that the appointment of the two as the receivers and administrators for the company’s takeover by the bank had caused losses to it.

Counsel Sng Eu Kim is representing the company while the bank is represented by Lim Siew Ming. Lee Shih appears for the two individuals. Sng told the media that the court had also set May 27 for case management.

In its statement of claim, the company, which was involved in a mixed development known as the Bandar Bistari Perdana in Johor Baru, said that although it had filed an application to stop the bank from appointing receivers and administrators, at the Johor Bau High Court, the bank went on making the appointment.

The application was made pending the disposal of a suit filed on April 8 last year at the Johor Baru High Court by the developer against the bank for alleged breach of agreement.

On Nov 23 last year, the Johor Baru High Court allowed an injunction application and ordered that Gan and Mok be disallowed from becoming the receivers and administrators for the company’s takeover.

In the suit, the company is seeking RM680 million in damages, RM400 in general damages, RM200 million in exemplary damages as well as costs and interests.

- Bernama

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