PETALING JAYA: The Phnom Penh Court has granted a judgement against Parkson Holdings Bhd’s Cambodian unit, Parkson (Cambodia) Co Ltd (PCCO), to pay damages amounting to US$144.50mil (RM630mil) for terminating a lease agreement with Hassan (Cambodia) Development Co Ltd (HCDC).
In a filing with Bursa Malaysia, Parkson said PCCO would also have to forfeit the security deposit and all advanced rental payments amounting to US$4.49mil (RM20mil) that were made to HCDH under the agreement.
“PCCO is currently seeking advice from its Cambodian lawyers whether to petition to set aside the judgement, to appeal to the Cambodian Appellate Court or if other forms of recourse are available.
“The board wishes to highlight that the judgement is only applicable against PCCO and does not extend to the company, the company’s other subsidiaries nor its holding companies, ” Parkson said.
In November 2018, PCCO initiated arbitration proceedings under the Singapore International Arbitration Centre (SIAC) against HCDC for prolonged delays in handing over new store premises in Phnom Penh.
According to reports, HCDC was supposed to have completed and handed over the premises in a new building that was supposed to be constructed by Dec 31,2016.
Following the alleged failure by HCDC to remedy its breaches, PCCO terminated the lease agreement by notice to the lessor.
On Dec 12,2018, HCDC filed a petition in the Phnom Penh Court for the termination of the lease agreement.
Prior to the judgement, Parkson said PCCO had filed an appeal motion to the Cambodian Appellate Court to transfer the jurisdiction of the Phnom Penh Court to hear Case No. 2577 to SIAC Arbitration jurisdiction. “The appeal motion is currently pending in the Cambodian Appellate Court, ” Parkson said.
Did you find this article insightful?
100% readers found this article insightful