Reference is made to the Company's announcement on 6 July 2018 that HCM Engineering Sdn Bhd ("HCM"), a subsidiary of the Company had received Adjudication Decision whereby HCM shall pay to Kuasatek (M) Sdn Bhd ("Kuasatek") the sum of RM2,959,490.44 within 14 days from the date of the said Adjudication Decision.
The Company wishes to announce that HCM has on 8 August 2018, filed the following applications in the High Court of Malaya at Kuala Lumpur ("KL High Court"):
(i) An application by way of Originating Summons to set aside the Adjudication Decision pursuant to Section 15(b) and Section 15(d) of the Construction Industry Payment Adjudication Act 2012 ("the Setting Aside Application");
(ii) An application by way of Originating Summons to stay the Adjudication Decision pursuant to Section 16 of the Construction Industry Payment Adjudication Act 2012 pending arbitration ("the Stay Application"); and
(iii) An ex-parte application for Fortuna Injunction ("the Fortuna Injunction Application") against Kuasatek restraining Kuasatek from enforcing and/or executing the Adjudication Decision.
It is also to inform that:
(i) HCM has served a Notice To Request For Arbitration dated 6 August 2018 to Kuasatek to refer the Claim to arbitration pursuant to Article 3, Part II of the Asian International Arbitration Rules 2018; and
(ii) Kuasatek has, on 9 August 2018, served on HCM, an application by way of Originating Summons for an order that the Adjudication Decision dated 4 July 2018 be enforced as a judgment against HCM in the High Court pursuant to Section 28(1) of the Construction Industry Payment Adjudication Act 2012 ("the Enforcement Application").