43. SIGNIFICANT EVENTS (CONT'D.) (a) Material litigation (cont'd.) (i) Gumusut-Kakap Semi-Floating Production System (L) Limited (“GKL”) and Sabah Shell Petroleum Limited (“SSPC”) (cont'd.) 3) SSPC was awarded the following sums: a. USD236,378,824.46 for defects rectification work (inclusive of USD15,000,000.00 for Liquidated Damages); b. USD88,317,146.13 as a refund for overpayment of the Additional Lease Rate originally awarded in the Adjudication Proceedings for the period of April 2014 to January 2020 due to the reduction of the Additional Lease Rate as set out in Item 2(c) above; c. Applicable interest up to the date of the Award; d. Costs of USD 12,746,570.70; e. Interest at 6.65% on the sums awarded from the date of the Award until payment. 4) SSPC is entitled to set-off the above claims against moneys owed by SSPC to GKL under the Contract, including but not limited to the lease rate. 5) Any GST payable pursuant to the Goods and Services Tax Act 2014 to be accounted by the parties. Proceedings Post the Award GKL was advised that it has legal grounds to challenge the Award and on 7 July 2020, GKL has filed the following court applications: (i) an Originating Summons dated 7 July 2020 for setting aside of parts of the Arbitral Award dated 8 April 2020 (“Setting Aside OS”); and (ii) a Notice of Application for an injunction to restrain SSPC from setting off the sums that GKL was ordered to pay to SSPC under the Arbitral Award dated 8 April 2020 (“Injunction NOA”). 43. SIGNIFICANT EVENTS (CONT'D.) (a) Material litigation (cont'd.) (i) Gumusut-Kakap Semi-Floating Production System (L) Limited (“GKL”) and Sabah Shell Petroleum Limited (“SSPC”) (cont'd.) Setting Aside OS On 7 July 2020, GKL filed an Originating Summons to set aside parts of the Arbitral Award dated 8 April 2020. The proceeding of this Setting Aside OS was delayed due to the COVID-19 situation and the various applications filed by both Parties in relation to this matter: (i) Injunction NOA On 6 October 2020, GKL withdrew the Injunction NOA on the basis that a statutory stay of enforcement is automatically imposed on SSPC upon GKL’s application to set aside SSPC’s Award enforcement. Additionally, GKL had filed an interim application preventing SSPC from enforcing the Award prior to the determination of the Setting Aside OS. This application was heard on 16 August 2021 and 1 October 2021. On 25 October 2021, the High Court dismissed GKL’s interim application and decided that SSPC has the right to set off the award against the charter hire without full grounds of judgment. GKL has since obtained the High Court’s written grounds of judgment and is of the opinion that there are grounds to appeal against the High Court’s decision in dismissing GKL’s interim application. As such, on 22 November 2021 GKL filed an appeal to the Court of Appeal against the High Court’s decision. This appeal has now been fixed for hearing on 6 July 2022 with a final case management date fixed on 22 June 2022 for any final instructions that may be required. (ii) SSPC Expungement Application SSPC filed an interim application to expunge the affidavit of GKL’s quantum expert (“SSPC Expungement Application”), which was filed by GKL to clarify certain issues in support of the Setting Aside OS. This application was heard on 9 August 2021 and 9 September 2021. On 1 October 2021, the High Court allowed SSPC’s application with costs. Although no reasons were given by the High Court, attempts are being made by GKL’s lawyers to try and secure the same. Despite the High Court’s decision in allowing SSPC’s Expungement Application, GKL’s lawyers have advised that this argument can still be shown from the records and therefore, the expungement of the quantum expert’s affidavit does not affect GKL’s arguments in the Setting Aside. GKL’s Setting Aside OS was partly heard on 20 and 25 October 2021 and 13 January 2022 where GKL’s counsel presented its case before the Judge at the High Court. The matter is fixed for continued hearing on 16 February 2022, 17 February 2022 and 4 April 2022. NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 MISC Berhad 444 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 445 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
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