Boustead Plantations takes SP Setia unit to court

08 Jan 2019 / 20:42 H.

PETALING JAYA: Boustead Plantations Bhd is taking legal action against SP Setia Bhd’s Setia Fontaines Sdn Bhd for breach of a sale and purchase agreement (SPA) involving a land deal in Penang.

In a filing with Bursa Malaysia, Boustead Plantations said it had filed a writ of summons and statement of claim on Setia Fontaines on Dec 28, 2018, which was served on the defendant on Jan 3.

Boustead Plantations is claiming for relief against the defendant on account of the breach of the SPA dated Dec 22, 2016. The claims are related to a refund under the Goods and Services Tax Act, 2014 owing to Boustead Plantations.

The claims include a declaration that goods and services tax is chargeable in the sum of RM37.2 million on the sale of lands by Boustead Plantations to Setia Fontaines and damages amounting to RM37.2 million to be paid by Setia Fontaines.

Boustead Plantations is also claiming interest at the rate of 8% per annum (or a rate deemed fit by the court) computed from Oct 31, 2017 until full settlement by Setia Fontaines as well as costs and further or other relief deemed fit by the court.

Setia Fontaines has 14 days from the date of receipt of the writ of summons to enter its appearance in the suit. The matter has been fixed for case management on Jan 28, 2019.

“In consultation with Boustead Plantations’ solicitors, the board is of the view that Boustead Plantations has a good cause in this suit and are therefore positive of the outcome of this litigation,” the company said.

To recap, SP Setia acquired five parcels of land measuring a total of 677.8ha in Seberang Perai Utara in Penang from Boustead Plantations for RM620.12 million cash, following a successful bid by the property developer under a tender exercise.

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