KUALA LUMPUR (Feb 18): Muar Ban Lee Group Bhd's (MBL) wholly-owned subsidiary MBL Plantation Sdn Bhd (MBLPSB) is being sued by privately-held Doa Huat Holdings Sdn Bhd, which is seeking RM23.9 million to be returned to the latter.

In a bourse filing on Friday (Feb 18), the palm kernel expeller manufacturer said MBLPSB had on Friday (Feb 18) received a writ of summon and statement of claim filed by Doa Huat.

According to the statement of claims, Doa Huat is also claiming from MBLPSB a declaration that the share sale agreement entered into between the two parties in April last year for the purchase of 2 million units of Sokor Gemilang Ladang Sdn Bhd for RM25 million be voided. Doa Huat also wants MBLPSB to pay interest on the sum of RM23.9 million from the date of judgment until the date of full settlement, costs and other relief that the court deems fit.

MBL said the agreement between MBLPSB and Doa Huat provides that the transaction is subject to MBLPSB obtaining approval from the state authority pursuant to the concession to plant and harvest palm oil for the transfer of ownership of its shares on/or before July 5, 2021, with an automatic extension time for a period of 24 months.

Doa Huat has so far made a payment of RM23.9 million to MBLPSB.

MBLPSB had on Feb 6 obtained a letter of approval from Perbadanan Pembangunan Ladang Rakyat Negeri Kelantan (PPLRNK) for the transfer of Sokor Gemilang shares to Doa Huat, and further demanded payment of the balance RM1.1 million from Doa Huat.

However, Doa Huat is disputing the letter of approval, citing that PPLRNK is not a “state authority” and contended, among others, that the letter of approval was not specific enough to refer to Doa Huat, and to state that consent for transfer of shares to Doa Huat is given.

Doa Huat is also disputing MBL’s failure to make a prompt announcement to Bursa Malaysia. The sale of Sokor Gemilang was undertaken in April 2021, but the announcement of the sale to Bursa was only made on Jan 21 this year — or nine months later.

MBL said the lawsuit will not have any financial or operational impact on the group. "MBLPSB will appoint a firm of lawyers to act on its behalf," it added.

In a Jan 31 report, The Edge Weekly had mentioned that Doa Huat is the vehicle of Datin Chok Chew Lan, the wife of businessman Datuk David Goh Hock Choy. Goh and the management of MBL were on good terms in April 2021, when the sale of Sokor Gemilang took place. But since then, the relationship between Goh and MBL has soured.

MBL shares closed down 0.5 sen or 1.19% at 42 sen on Friday, giving it a market capitalisation of RM103.05 million.