“Country Heights seeks withdrawal of legal action over unpaid payments, emphasizing accountability and reputation protection amidst a dispute with Lean Xing Construction.”
Kuala Lumpur, 19th Sept 2024, 01.46pm – Country Heights Holdings Bhd announced that it will urge the contractor for its residential project in Kedah to retract its legal action against the group’s subsidiary, Country Heights Smart Living Sdn Bhd, over alleged unpaid payments.
Should the contractor, Lean Xing Construction Sdn Bhd, decline to withdraw the petition filed against the subsidiary, CHHB plans to notify Bursa Malaysia about the potential reputational damage caused by the legal action, the group stated.
“CHHB is committed to protecting its reputation and cautions other parties against pursuing similar legal actions based on unfounded claims,” the group emphasized in a statement on Thursday.
CHHB stated that the dispute concerns alleged unpaid amounts related to the construction of 90 “super-linked modern contemporary houses” in its development project at Kolej Heights Utara in Jitra, Kedah.
According to CHHB, these unpaid amounts are associated with ongoing liquidated ascertained damages (LAD) and variable orders, which have yet to be finalized. Consequently, the group explained that the project’s accounts remain unsettled, and no payments can be made to Lean Xing Construction until the LAD is resolved and determined.
However, CHHB did not disclose the specific value of the alleged unpaid amounts.
CHHB stated that the final construction account for the project is currently being prepared and awaits the final review and sign-off by the appointed architect. This step is crucial to ensure that all work has been completed according to the contractual scope and quality standards.
CHHB emphasized its commitment to accountability, stating that any outstanding payments will only be made once this final review is properly validated and completed.
In a separate matter, CHHB confirmed that it had fully settled its obligations to the law firm Messrs Chellam Wong, resolving the issue between the two parties.
“Despite the ongoing nature of the proceedings and the incomplete status of the corporate exercise, CHHB responsibly addressed the matter, fulfilling its obligations to [Messrs Chellam Wong] in line with the company’s principles of accountability and integrity,” the company added.
Last week, CHHB announced that it had settled the RM425,060 in legal fees owed to the law firm without admitting any liability. As a result, Messrs Chellam Wong agreed to withdraw the winding-up petition they had filed in July at the High Court.
The disagreement stemmed from claims of unpaid legal fees for services the law firm provided during CHHB’s corporate exercise.
On Thursday, CHHB’s shares increased by two sen, or 8.7%, closing at 25 sen, giving the company a market capitalization of RM74.85 million.
