Tuesday, December 27, 2011

Mah Sing takes legal action to stop sale of Jln Tun Razak land

KUALA LUMPUR (Dec 27): MAH SING GROUP BHD []'s unit has taken legal action to stop Asie Sdn Bhd and Usaha Nusantara Sdn Bhd from transacting in the 4.08 acres of land along Jalan Tun Razak following a dispute in the joint venture agreement (JVA).

Mah Sing said on Tuesday Grand Pavilion Development Sdn had filed a summons in chamber in the High Cout of Malaya to seek an interlocutory injunction over the land, known as Parcel K.

The legal action was to restrain Asie and Usaha Nusantara from transferring, assigning, selling, parting, disposing and/or dealing with the leasehold land.

'The plaintiff also seeks to restrain the defendants from granting to any party other than the plaintiff any right to deal with and/or develop Parcel K,' it said.

To recap, The Edge Financial Daily reported on Dec 14 that Mah Sing was informed by Asie that the JVA for the development of a tract of land has lapsed following the failure to meet an outstanding condition.

It said that Asie and its subsidiary Usaha Nusantara Sdn Bhd, through their solicitors, have taken the position that the JVA has lapsed and was of no effect from Dec 2, 2011.

However, Mah Sing maintained the JVA had not lapsed and issued a letter to Asie and Nusantara's solicitors maintaining this position.

A deposit comprising 10% of the total cash payment payable to Nusantara, amounting to RM6.4 million with interest, was refunded to Mah Sing. However, Mah Sing returned the money, saying it was unable to accept the refund.

According to a previous announcement to Bursa, Grand Pavilion, Mah Sing's wholly-owned unit and representative in the JVA, is entitled to proceed with the agreement by waiving any of the conditions if they are not fulfilled within the entitlement period.

The disagreement comes after both parties mutually agreed to extend the original deadline by a month and waive four out of five of the conditions in the JVA.

The remaining condition is the receipt by Grand Pavilion of the original issue documents of the title to the JV land with Nusantara endorsed as the legal and registered owner or an alternative arrangement accepted by Grand Pavilion.

Mah Sing announced in August it had secured the land, which formerly housed the Pekeliling flats, to develop a project called M Sentral that had a potential gross development value (GDV) of RM900 million.

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