PETALING JAYA: The High Court has dismissed the claim by Kamdar Group (M) Bhd’s unit Kamdar Sdn Bhd against former chairman Bipinchandra Balvantrai and two others.
Kamdar Group told Bursa Malaysia yesterday that the court dismissed on June 1 its unit’s claim against Bipinchandra, who resigned as chairman in mid-2013, as well as Jayesh R. Kamdar Rajnikant and Yap Kim Hong.
Kamdar must also pay the three defendants RM60,000 each in cost.
Bipinchandra, who is currently Kamdar Group’s single biggest shareholder with a 28.91% stake, was redesignated from chairman and executive director to non-executive director in April 2013. He was not re-elected at the AGM held on June 26, 2013.
In April last year, Kamdar Group appointed Morison Anuarul Azizan Chew as special auditor to assist the Kamdar audit committee to conduct an investigation into an alleged withdrawal of RM8.7mil from Kamdar Sdn Bhd’s account.
The auditors have found that there were four non-business withdrawals transactions amounting to RM8.84mil effected from Kamdar Sdn Bhd’s bank accounts from March 23 to 26, 2005, by “two individuals who were former officers of Kamdar Group.”
In October, Kamdar initiated legal proceedings to recover the funds that were allegedly withdrawn totalling RM8.7mil and to claim general, aggravated and exemplary damages, compound interest and such further and other relief as the court deems fit.
On the latest turn of events, Kamdar Group said its unit would decide whether to appeal the decision only after due consultation with its lawyers.
Kamdar Group closed half a sen lower at 42 sen yesterday.