The Board of Directors of Ireka Corporation Berhad ("ICB") wishes to inform that on 6 May 2024, United Time Development Sdn Bhd (“UTD”), a wholly owned subsidiary of ICB, was served with a copy of Originating Summons (“OS”) by Leow Peng Seow (“the Plaintiff”) through his solicitors, Messrs. Jeffery Wong, Noorul, Ho & Lim.

The Plaintiff is a director of Quality Parts Sdn Bhd (“QPSB”), a supplier of Ireka Engineering & Construction Sdn Bhd (“IECSB”), a wholly owned subsidiary of ICB which is currently under liquidation. Between 2018 to 2021, QPSB sold and delivered goods to IECSB and there was an outstanding amount owing by IECSB to QPSB (“Principal Outstanding Sum”).

The OS is premised on one (1) unit of service apartment (“the Property”) at KaMi Mont’ Kiara, which was purchased by the Plaintiff by way of contra arrangement whereby the consideration of the Property was fully offset by the Principal Outstanding Sum owed by  IECSB to QPSB. IECSB then undertook to successively pay the stage progress billing of the Property to UTD, the developer of KaMi Mont’ Kiara as and when they become due.

However, since IECSB was placed into a creditors’ voluntary winding up on 11 May 2023, UTD had requested the Plaintiff to directly settle the remaining stage progress billing amounts, taking into consideration that IECSB is no longer in a position to make the required payment to UTD.  

The subsequent failure by the Plaintiff to adhere to the payment request resulted in the termination of the SPA, which consequently prompted the commencement of the OS.

Under the OS, the Plaintiff is seeking from court, among others, the following reliefs:

1.     A declaration that the termination of the SPA by UTD is invalid and ineffective;

2.     A declaration that the SPA is still valid and enforceable; and

3.     An order from court enforcing UTD to perform the terms and conditions of the SPA.

UTD is now in the midst of appointing its solicitors to resist the matter. 

There is no major financial impact from the OS as the unpaid amount of the remaining stage progress billing of the Property as indicated above is not substantial.

This announcement is dated 7 May 2024.