KUALA LUMPUR (June 21): Two indirect units of Felda Global Ventures Holdings Bhd (FGV) are being hauled to court over land-related claims.

In a filing with Bursa Malaysia today, FGV said Yapidmas Plantation Sdn Bhd (YPSB), a wholly-­owned subsidiary of Pontian United Plantations Bhd (PUP), which in turn is wholly-owned by FGV, has been served with a writ of summons and statement of claim dated Feb 3, 2016, by Euggne Kousai (plaintiff).

Euggne is seeking for a declaration that the subleasing of a 225.96-hectare land held under a native title in Tongod, Sabah to YPSB and transfer of the land from the plaintiff to Lahida Ibrahim is null and void, has no legal effect and revoked.

He is also seeking a declaration that the agreements executed by Kousai dated May 19, 2005 to sublease the land to YPSB are null and void, has no legal effect and is revoked.

Euggne is also pursuing an injunction to restrain YPSB and others from selling, charging, transferring the land or inking any deal over the land until final adjudication as well as an order for YPSB and others to vacate the land within a week from the date of the order and deliver possession of the land to Kousai.

He is also seeking an injunction to restrain YPSB and others from entering and/or interfering with Kousai’s right to enter and occupy the land as well as from claiming any rights or interests under the land.

In a separate filing, another FGV unit, Sri Kehuma Sdn Bhd (SKSB), a wholly-­owned subsidiary of PUP, has also been served with a writ of summons dated May 12, 2016 by Abdul Malik Said Omar and Fathiyah S. Abdul Salam (the plaintiffs).

The plaintiffs are seeking a declaration that the execution of the issue title deeds of the 499 acre land in Labuk/Sugut, Sabah, by SKSB dated Feb 13, 1988 is null and void; and a declaration that SKSB holds the land as constructive trustee for the plaintiffs and for the original registered proprietor of the land as stated in the land title.

The plaintiffs are also seeking a declaration that the memorandum of transfer registered to SKSB on Sept 27, 1991 on the title deeds of the land is null and void, and of no effect. They also seek an injunction to restrain SKSB and others from dealing with the land.

FGV said PUP had entered into a sale and purchase agreement dated June 8, 2015, to acquire both pieces of land owned by Golden Land Bhd and its four wholly-owned subsidiary companies, including YPSB and SKSB.

The SPA was completed on March 14, 2016, FGV said.

FGV said the transfer of the land to Lahida and the sublease of the land to YPSB were completed prior to the SPA, and no information relating to the Kousai’s claim was made known to FGV and/or PUP, prior to the signing of the SPA.

Similarly, the transfer of the land to SKSB was completed prior to the SPA and no information relating to Abdul Malik’s and Fathiyah’s claim was made known to FGVH and/or PUP, prior to the signing of the SPA.

FGV also said FGV and PUP have no knowledge of the merit of the claims made by Euggne and the other plaintiffs.

It added that Golden Land shall be required under the SPA, to indemnify and keep PUP indemnified against all losses which PUP may incur, or be liable in relation to any legal suits in connection with, among others, a breach of a warranty.

Therefore, FGV said both claims may not have any material financial/operational impact on the group.

“Pursuant to Clause 11.11 of the SPA, Golden Land shall not be liable under the SPA in respect of any losses resulting from a breach under the warranties (save and except for tax liabilities arising prior to completion date), unless PUP gives notice of the losses to Golden Land within a period of two years from completion date in respect of the warranties,” the filing stated.

Despite this, FGV said the group will be seeking legal advice to act against the claims.

FGV shares closed 6 sen or 3.77% lower at RM1.53 today, for a market capitalisation of RM5.58 billion.