MATERIAL LITIGATION NESTCON BERHAD ("NESTCON" OR "THE COMPANY") - MATERIAL LITIGATION: CIVIL SUIT NO: NA-23NCVC-3-08/2024

NESTCON BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
NESTCON BERHAD ("NESTCON" OR "THE COMPANY") - MATERIAL LITIGATION: CIVIL SUIT NO: NA-23NCVC-3-08/2024
1. INTRODUCTION

The Board of Directors of the Company wishes to inform that Nestcon Infra Sdn. Bhd. (“Nestcon Infra”), a wholly-owned subsidiary of the Company, was served on 2 August 2024 with a copy of the sealed Writ and Statement of Claim both dated 25 July 2024 filed by Ong Nai Loo (“Plaintiff”), as one of the defendants, through a firm of lawyers acting on his behalf. The matter is fixed for case management on 19 August 2024.


2. PARTICULARS OF CLAIM OF THE WRIT AND STATEMENT OF CLAIM

According to the Statement of Claim, the Plaintiff’s complaint was that around 1 October 2018, Nestcon Infra, in the course of completing its project, allegedly trespassed on the Plaintiff’s land with machineries to carry out earthworks, thereby depriving the Plaintiff of the use and enjoyment of his land.

The Plaintiff seeks against Nestcon Infra and other defendant for injunction, general damages, exemplary or aggravated damages, indemnity and special damages of RM1,825,288.20.


3. FINANCIAL AND OPERATIONAL IMPACT

We wish to inform that Nestcon Infra’s works for the project in question was completed on 12 December 2018 and the Certificate of Practical Completion was issued on the same day.

Nevertheless, given the varying nature and outcomes of legal disputes, we are unable to provide any assurances or predict the potential impact to our operations, financial performance, or future prospects at this stage. However, we would like to assure our shareholders, stakeholders, and investors that we remain committed to conducting our business in an efficient and responsible manner.


4. EXPECTED LOSSES TO THE GROUP, IF ANY

Nestcon Infra is exposed to the claims as stated above and legal expenses. However, Nestcon Infra believes it has a good defence against the claims, and any potential losses thereof are not expected to be significant to the Group.


5. STEPS TAKEN BY THE COMPANY

The Company has sought legal advice and Nestcon Infra is being legally represented in the suit.  

We will make further announcement as and when deemed appropriate if there are any further developments on this matter.

This announcement is dated 16 August 2024.





Announcement Info

Company Name NESTCON BERHAD
Stock Name NESTCON
Date Announced 16 Aug 2024
Category General Announcement for PLC
Reference Number GA1-16082024-00018