Monday, June 20, 2011

High Court dismisses Pioneer Haven's bid in Ho Hup suit

KUALA LUMPUR: The Kuala Lumpur High Court has dismissed Pioneer Haven Sdn Bhd's application for a stay of execution over the judgement on a 60-acre (24.3 ha) plot of land in Bukit Jalil, with costs in favour of Ho Hup CONSTRUCTION [] Bhd.

Ho Hup said on Monday, June 20 that the court had made the ruling on Friday, June 17 after hearing arguments by lawyers for both Pioneer Haven (which is a unit of MALTON BHD []) and Ho Hup.

It said the High Court also set several conditions, pending the disposal of the appeal by Pioneer Haven to the Court of Appeal.

The High Court had agreed to the conditions proposed by Ho Hup, wherein it would not to sell nor dispose of the land. Ho Hup had also proposed it would not enter into any joint venture for the development of the land but may self-develop the land.

The court also said Pioneer Haven's private caveat on the land shall be removed (as already ordered on June 7), and Ho Hup group may redeem the charge in favour of CIMB and charge the land in favour of the new financier.

To recap, on June 7, the High Court had delivered its judgment and declared the joint development agreement dated March 16, 2010 (JDA) between Pioneer Haven and Ho Hup's 70%-owned Bukit Jalil Development Sdn Bhd to be null and void.

The court also found that the JDA was, in substance, a disposal of Bukit Jalil's 60-acres land at Bukit Jalil'' for which shareholders' approvals had not been obtained pursuant to Section 132C of the Companies Act 1965.

The High Court also ordered that the private caveat by Pioneer Haven be expunged and/or removed.

However, on June 10 Pioneer Haven sought for a stay of execution of the judgment.

Ho Hup had confirmed that the Ho Hup group was in the process of refinancing the existing loan facilities given to Ho Hup group by CIMB Bank Bhd and redeem the charge in favour of CIMB over the land for the purpose of charging the Land as security to the new financier;

Ho Hup had also said it would ill not sell or dispose of the land, or to enter into any joint venture with third parties for the development of the land; instead, Ho Hup group would develop the land on its own.

No comments:

Post a Comment