Thursday 01 Jun 2023
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KUALA LUMPUR (March 22): Parkson Retail Asia Ltd (PRA) on Wednesday (March 22) announced that the Court of Appeal has allowed the appeal by PKNS Andaman Development Sdn Bhd against the decision given by the High Court of Malaya on Jan 29, 2021 allowing its subsidiary Parkson Corporation Sdn Bhd’s (PCSB) application to strike out a suit brought against it by PKNS.

This means that the suit brought by PKNS Andaman against PCSB in regards to the company allegedly failing to pay rent for retail space in EVO Shopping Mall in Bangi back in December 2019, will continue for trial at the High Court.

“The Board wishes to update that on March 21, 2023, the Court of Appeal allowed PKNS’s appeal against the decision given by the High Court of Malaya on Jan 29, 2021 allowing PCSB’s application to strike out the Suit, with costs of RM10,000 (approximately S$2,985) and had ordered for the matter to continue for trial at the High Court of Malaya.

“The Company will make further announcements as and when there are any material developments,” said PRA’s executive chairman Tan Sri William Cheng in a statement filed with Bursa Malaysia.

PRA is listed on the Singapore Exchange, with Bursa Malaysia-listed Parkson Holdings Bhd being its largest shareholder with approximately 68% shareholding. PRA operates the Parkson-branded stores in Malaysia and Vietnam.

PKNS Andaman is owned by the Selangor State Development Corp (PKNS) and Andaman Group, a property development company.

On Dec 29, 2019, PRA announced on Singapore Exchange’s website and carried by Parkson on Bursa Malaysia that PKNS Andaman, in its statement of claim dated Sept 13 and served on Dec 23 of the same year, accused PCSB of failing to pay the rent as provided for in a tenancy agreement dated Oct 2, 2017.

PCSB said PKNS Andaman is claiming from the company RM3.66 million in accrued monthly rental for the period from April 2, 2018 to Dec 2, 2019, as well as RM182,958 per month until the return of the retail space to PKNS Andaman.

Alternatively, PCSB can also pay PKNS Andaman RM3.84 million — which represents the accrued rental from Feb 27, 2017 till Nov 27, 2019. This option also includes PCSB paying PKNS Andaman RM182,958 a month until PCSB delivers the retail space to PKNS Andaman.

Additionally, PKNS Andaman is also claiming RM1.86 million from PCSB as compensation for PKNS Andaman’s contribution to the department store’s renovation costs.

PKNS Andaman also wants PCSB to deliver the retail space in original condition within 14 days from the judgment and pay for PKNS Andaman’s court and legal costs.

PCSB has rejected PKNS Andaman’s claims, saying no rental is payable as the latter “has failed to satisfy the conditions precedent as set out in the tenancy agreement for rental commencement to be triggered”.

PCSB is also of the view that PKNS Andaman’s act of backdating the commencement date of rental in the commencement notice “without satisfying the conditions precedent”, is unlawful.

Parkson closed 3.57% lower at 14 sen on Wednesday, for a market capitalisation of RM155.1 million.

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