KUALA LUMPUR (April 21): Jiankun International Bhd said the notice of demand for RM12.98 million that its wholly owned JKI Development Sdn Bhd (JKID) received last December from its joint venture partner has been declared "an abuse of court's process" by the court here.

The JV partner is Fivestar Development (Puchong) Sdn Bhd, who issued the notice in relation to a residential development in Petaling, Selangor, that the entities were jointly developing.

In a bourse filing Thursday (April 20), Jiankun said JKID also obtained a declaration from the court that there were "bona fide issues" in its dispute with Fivestar, as well as a declaration that Fivestar's notice of demand was "not bona fide but an act to apply undue pressure on JKID to pay sums that are disputed and not due and owing from JKID".

The unit also successfully obtained from the court a prohibitory injunction against Fivestar from filing any winding-up petition against JKID, together with general damages to be assessed from Fivestar.

Last December, Jiankun said FiveStar was seeking the payment of RM12.98 million in unpaid sums due and owed by JKID pursuant to a JV agreement inked between them that was dated July 28, 2015, and a supplementary agreement dated Oct 5, 2016.

Later that month, Jiankun said JKID, via its solicitor Messrs Arnold Andrew & Co, filed an injunction to prohibit and restrain Fivestar from filing and presenting a winding-up petition against JKID.

According to Jiankun’s filings, JKID entered into the JV deal with Fivestar to develop a 377-unit service apartment on a 8,132-square meter freehold land in Petaling, Selangor, owned by Fivestar. At the time, it said the project's estimated gross development cost was RM147.2 million, and that it carried an estimated gross development value of RM180 million.

Under the JV deal, JKID was to pay Fivestar RM36 million or 20% of the GDV less the Bumiputera discount, sales rebates and sales packaging cost — whichever is higher.

Jiankun shares closed unchanged at 20.5 sen on Thursday, giving the company a market capitalisation of RM72.15 million.