FGV HOLDINGS BERHAD | AUDITED FINANCIAL STATEMENTS 2023 199 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 56 MATERIAL LITIGATION (CONTINUED) (iii) On 10 April 2023, Sri Kehuma Sdn. Bhd. and Yapidmas Plantation Sdn. Bhd., indirect subsidiaries of the Company, (“the Defendants”) had been served with a sealed Writ of Summons dated 13 March 2023 (“the Writ”) by Euggne Kousai (“the Plaintiff”). The plantiff, among others, is claiming for damages amounting to RM24,924,000 due to the Defendants’ alleged fraudulent transaction and the continuing trespass of forty one (41) parcels of lands under Native Title, which are under lease agreements, which the Plaintiff claims to be the registered owner. The Plaintiff had further filed an application under Order 14A of the Rules of Court 2012 to request the Court to dispose the suit without the need for full trial. The hearing before the Judge has fixed on 5 October 2023. During the e-review on 20 September 2023, the Plaintiff has agreed to withdraw the Order 14A application. Therefore Plaintiff’s Order 14A Application has been struck out by the Court with costs of RM1,000 only. Hence the hearing date on 5 October 2023 has been vacated. The application by the Defendants to amend the Defence (to plead new defences of limitation and res judicata/and or cause of action estoppel) was allowed on 18 September 2023 by the Court. The solicitors have filed the Notice of Application to strike out the Plaintiff’s claim (based on time limitation and res judicata/and or cause of action estoppel) on 31 October 2023. On 22 February 2024, the Court has been informed that that parties have exchanged their submissions for the striking out application and requested for a hearing date to be fixed. The Court has fixed 17 May 2024 for the decision of the striking out application. The Directors believe the Group has a reasonable chance of succeeding in the application to strike out the claim. Accordingly, no provision has been recognised as the cash outflow is not probable. (iv) A claim by the Euggne Kousai (Plaintiff) that the sub-leases dated 16.09.1997 and 06.07.1999 in respect of (17) parcels of land were tainted with fraud and legality. The Plaintiff also claims that there is continuing trespass by the Ladang Kluang Sdn. Bhd., indirect subsidiaries of the Company, (“the Defendants”). The Plaintiff seeks a declaration that the sub-leases are illegal and void as well as damages for the amount of RM10,310,000. On 25 January 2024, the High Court has allowed the Defendant’s application to set aside the Judgement in Default dated 13 September 2023. On 8 February 2024, the Defendant filed its Defence. The solicitors have informed the Court that the pleadings have closed. The Defendant will file a striking out application. The Court has fixed 19 April 2024 for the Defendant to file the striking out application. The Directors believe the Group has a reasonable chance of succeeding in the application to strike out the claim. Accordingly, no provision has been recognised as the cash outflow is not probable. The remaining claims are not material to be disclosed in the financial statements and deemed remote by the Directors.
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