KUALA LUMPUR: The Court of Appeal has fixed Nov 14 to hear an appeal by a property development company that has for almost a year refused to release some RM50mil bank guarantees to Star Media Group Bhd.
The guarantees were for failing to hand over in time the vacant possession of a building in Section 13, Petaling Jaya.
Star Media Group’s lawyer Wong Guo Bin said the court’s registrar fixed the date to hear the appeal by JAKS Island Circle Sdn Bhd (JIC). JIC is a 51% subsidiary of JAKS Resources Bhd (JRB).
The appeal filed was in relation to a July 12 High Court decision that dismissed its two originating summons against Star Media Group to restrain two banks from releasing RM50mil in bank guarantees to the group.
Earlier on Wednesday, JIC’s counsel told the court that the firm was not comfortable with the panel that was set to hear the case. One of the judges, Court of Appeal judge Justice Stephen Chung, had also heard the Erinford injunction.
JIC previously failed in its attempt to obtain an Erinford injunction to restrain the banks from releasing the money.
The Erinford injunction refers to an application to maintain the status quo pending an appeal.
Star Media Group counsel Datuk Dr Cyrus Das had then informed the Court of Appeal that the media group had no objection to this as Justice Chung had only heard the interlocutory application.
Dr Das, however, said the company would leave the matter to the court’s discretion.
On Feb 20, Star Media Group informed Bursa Malaysia that the deadline for delivery of vacant possession of Tower A, in accordance to a sale and purchase agreement (SPA) dated Aug 19, 2011, made with JIC, expired on Feb 15.
This followed a fourth extension agreed between Star Media Group and JIC. The delay in delivering Tower A as at Feb 15 stands at 26.5 months.
On Feb 23, JIC filed two originating summonses in the Kuala Lumpur High Court, among others, to restrain the banks from releasing payment to Star Media Group.
On July 12, the High Court dismissed the two originating summons and ordered, among others, the banks to make the payment on or before July 19.
Following this, JIC on July 13 filed an appeal against the High Court’s decision in dismissing both the originating summonses and stay of execution of the High Court’s order on July 12 pending hearing and resolution of JIC’s appeals.
JIC also filed for an Erinford injunction at the High Court to prevent the company from receiving the payment pending the full and final disposal of JIC’s appeals.
JIC subsequently withdrew their application for stay of execution during the case management on July 17.
On July 23, the High Court dismissed JIC’s Erinford injunction and ordered that the banks make payment under some bank guarantees on or before July 30. But on July 24, JIC filed for a fresh Erinford injunction at the Court of Appeal.
It was dismissed on July 27 and the court ordered the banks to pay by July 30.
JIC subsequently filed an application at the Federal Court for leave to appeal against the Court of Appeal’s decision and applied for a fresh Erinford injunction.
The Federal Court then granted an interim stay/Erinford injunction until Sept 26.
On Sept 26, JIC sought an adjournment of the hearing for leave application and the Federal Court granted the interim stay/Erinford injunction to be continued until disposal of the leave application or JIC’s appeals to the Court of Appeal against the dismissal of both the originating summonses, whichever is earlier.