Syawaras sues Harvest Court over RM7.5m property

PETALING JAYA: Harvest Court Industries Bhd has received an originating summon from Messrs Wong Kian Kheong, the solicitor of Syawaras Sdn Bhd, for allegedly not acting in good faith and in the best interest of the company in the process of finalising a land acquisition.
In a filing with the stock exchange, Harvest Court said Syawaras had lodged a complaint with the Companies Commission of Malaysia, requesting an investigation on the sale and purchase agreement (SPA) signed between Harvest Court and the vendor Datuk Lim Thiam Huat.
Syawaras, which is aligned to Datuk Eddie Chai Woon Chet, is seeking an order to prohibit Harvest Court from implementing the SPA until the conclusion of the investigation by SSM and the prosecutor's decision on whether to file any charges against the board.
The originating summons and notice of application have been fixed for hearing on Aug 13 at Kuala Lumpur High Court.
The SPA involves an acquisition of a piece of land measuring 40,480 square metres together with four units of the warehouse and two units of Tenaga Nasional Bhd station for RM7.5 million.
However, Harvest Court said the summons is not expected to have any material financial and operational impact on the group, but it is seeking the necessary legal advice to resolve and/or defend against the matter.
This is the second suit against Harvest Court which can be linked to Chai. In July, Harvest Court told Bursa Malaysia Chai is suing the company for defamation over its announcements made to Bursa Malaysia on June 10 and 19 respectively and an article published by The Edge on June 20, 2014.
Chai, who is trying to convene an extraordinary general meeting (EGM) to replace four directors in Harvest Court with three others that include himself, had to call off the EGM after Harvest Court filed a suit against Zenith City Investments Limited and Syawaras to declare the notice that had been handed out by Zenith as invalid/defective.