Federal Court: No more excuse

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Property development company JAKS Island Circle Sdn Bhd (JIC) has no more excuse to stop the release of RM50mil in bank guarantees to Star Media Group (SMG). The Federal Court had shut down the developer’s final avenue to appeal yesterday when it dismissed its application for leave to appeal against previous court orders which were in favour of the media group.

 JIC had for almost a year prevented 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.

In a unanimous judgment, Chief Judge of Malaya Justice Zaharah Ibrahim, who chaired a three-man panel, said JIC did not meet the threshold requirement to have the review application granted.

The court ordered JIC to pay RM30,000 in costs to Star Media Group.

It also ordered for JIC to pay RM10,000 in costs to AmBank (M) Bhd and United Overseas Bank (Malaysia) Bhd each.

The media house was represented by lawyers Datuk Cyrus Das, Tharminder Singh and Wong Guo Bin.

Former Federal Court judge Datuk Seri Gopal Sri Ram represented JIC.

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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 agreed between Star Media Group and JIC.

However, JIC launched a series of appeals and applications for 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 Star Media Group 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.

The apex court however later granted an interim injunction to JIC pending the hearing of its application for leave to appeal, which took place yesterday.

source: TheStar

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