198 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 56 MATERIAL LITIGATION (CONTINUED) On 14 March 2023, the High Court was informed that FGV Prodata and FELDA would like to oppose VDSL’s application to amend the statement of claim. On 12 September 2023 the High Court granted VDSL’s amendment application on the statement of claim. Prodata has filed Re-Amended Defence on 2 November 2023. The Court Registrar has fixed 21 May 2024 for next case management for parties to update the Court on the filing of the common bundle of documents and the list of witnesses. The Court also has fixed 16 to 19 June 2025 (4 days) for a full trial. Based on legal opinion, there is a fair chance of Prodata succeeding in defending the claim from VDSL. According, no provision has been recognised as the cash outflow is not probable. (ii) On 12 February 2019, all Defendants to the suit filed by the Company on 23 November 2018 against its former members of the Board of Directors and former employees on the acquisition of APL (“Company suit”) had filed their respective Defences except for one, who was directed by the High Court to file his Defence on or before 4 March 2019. On 11 February 2019, certain Defendants to the Company suit had filed a counterclaim (“the Counterclaim”) against the Company and the previous members of the Board of Directors of the Company (“Counterclaim Defendants”). The Counterclaim seeks reliefs, jointly and severally, against the Company and the Counterclaim Defendants for declaration that the Company and the Counterclaim Defendants were liable for the loss of RM514 million (in the Company’s suit) and for any damages, general damages and interest at 5% per annum to be indemnified by the Company and Counterclaim Defendants. On 8 November 2019, the Counterclaim Defendants filed an application to strike out the Counterclaim. The High Court after hearing both parties, had struck out the Counterclaim and dismissed the 10th to 14th Defendants’ claim with costs. The High Court also directed the Defendants to file and serve their Amended Defence. On 13 January 2020, the Solicitors of 8th Defendant updated the Court that they had filed an application to amend their Defence. On 6 September 2021, the Court of Appeal heard and allowed the 10th to 14th Defendants’ appeal and reversed the decision of the High Court. The Company filed an application for leave to appeal to the Federal Court (”Leave Application”). The Court had on 8 September 2022 informed that the case would be transferred to NCvC 12 (new civil court) and no official letter of the direction from the new judge. On 5 October 2022, the Federal Court did not allow the Plaintiff’s application for Leave to Appeal and therefore, the Main Action and the Counterclaim will proceed to trial in the High Court. The Court has fixed new trial dates on 17 to 19 April 2023 and fixed for a case management and hearing for 10th to 14th Defendants amendment application on the counter claim on 22 February 2023. On 22 February 2023, the Judge indicated that this case would be more suitable to be heard in a Commercial Court (the case was filed in a Civil Court). Hence, the case management and hearing of 10th to 14th Defendants amendment application on the counter claim could not proceed. Additionally, the 1st Defendant has filed an application to amend his defence. The case has been transferred to the Commercial Court. On 31 March 2023, the Court has fixed the 1st Defendant’s Amendment Application and 10th to 14th Defendants Amendment Application for Hearing on 27 November 2023. On 27 November 2023, the Court has allowed both Applications with costs of RM5,000.00 to be borne by the 1st Defendant and 10th to 14th Defendants. The Court had granted a further extension for the Defendants to file the amended pleadings. Hence the Court has yet to fix the hearing date. Parties are still at the stage of finalising the filing of pleadings. Hence, the High Court will only fixed the next Case Management after pleadings are exhausted. As the court hearing dates are yet to be fixed, no provision has been recognised as the filing of the pleadings has yet to be completed.
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