PETALING JAYA: Property development company JAKS Island Circle Sdn Bhd (JIC) has missed the STAR MEDIA GROUP BHD’s (SMG) deadline for payment of over RM1.5mil in regard to a legal dispute, after failing to stay a court order to pay.
Back on June 19, High Court judge Justice Lee Swee Seng ordered JIC to pay interest totalling RM1,515,068.49 to SMG plus RM10,000 in costs.
This followed the successful application by SMG to enforce the undertaking issued by JIC filed early last year to stop the media group and the banks from accepting and releasing bank guarantees of RM50mil.
SMG was represented by counsel Wong Guo Bin while Datuk Wong Rhen Yen represented JIC.
JIC attempted to stay the order on July 12. However, the court dismissed the application on Nov 6. It also awarded RM8,000 to SMG.
In response, SMG issued a demand that the company pay the amount in seven days. This meant its deadline to pay the sum was Nov 13, which has passed.
SMG had been in a legal tussle with JIC for almost a year, with the latter attempting to prevent the release of the RM50mil bank guarantees to SMG following its failure to complete and deliver ownership of a building in Section 13, Petaling Jaya.
But on Jan 7, the Federal Court unanimously decided to shut down the developer’s final avenue of appeal, dismissing its application for leave to appeal against previous court orders which were in favour of the media group.
The Federal Court panel was chaired by Chief Judge of Malaya Justice Zaharah Ibrahim, and included fellow judges, Chief Judge of Sabah and Sarawak Justice David Wong and Federal Court judge Justice Alizatul Khair Osman Khairuddin.
The court ordered JIC to pay RM30,000 in costs to SMG and to pay RM10,000 each in costs to AmBank (M) Bhd and United Overseas Bank (M) Bhd.
On Feb 20 last year, SMG informed Bursa Malaysia that the deadline for delivery of ownership of Tower A in Section 13 in line with a sale and purchase agreement dated Aug 19,2011, made with JIC had expired on Feb 15,2018.
This followed the fourth extension granted by SMG to JIC.
However, JIC launched a series of appeals and applications for an injunction to stop the release of the money.
The High Court, in its decision on July 12,2018, dismissed the two originating summonses filed by JIC against SMG to restrain the two banks from releasing the bank guarantees to the group.
The decision was later affirmed by a three-man panel at the Court of Appeal, which also refused an interim injunction to JIC pending further proceedings in the Federal Court.
But the apex court later granted an interim injunction to JIC pending the hearing of its application for leave to appeal, which took place on Jan 7 but which was ultimately dismissed by the Federal Court on the said date.