KUALA LUMPUR (Jan 28): TH Plantations Bhd’s (KL:THPLANT) said its 60%-owned unit TH Pelita Simunjan Sdn Bhd is being sued for RM230.25 million for allegedly trespassing on native land.

Nine individuals are suing TH Pelita Simunjan on behalf of themselves and other owners of native customer rights (NCR) land in Simunjan, Sarawak, said TH Plantation, the plantation arm of Lembaga Tabung Haji, in a bourse filing on Tuesday.

The area involved in the suit spans 1,321.6ha out of TH Pelita Simunjan’s total 9,629.6ha. The suit named TH Pelita Simunjan, the unit’s remaining 40% shareholder Sarawak state government-owned LCDA Holdings Sdn Bhd, and Mohd Najib Arbi @ Nigel Anak Abi.

The plaintiffs are seeking court declarations that the native groups are the customary owners of the land; their rights to the NCR land had been impaired; TH Pelita Simunjan's act of clearing and allegedly destroying native properties on the land is void and wrongful; and that the company is trespassing on the land.

The plaintiffs are also seeking special damages for trespassing and loss of profits of RM184.2 million and aggravated and/or exemplary damages of RM46.05 million.

They are also seeking a mandatory injunction for TH Pelita Simunjan to remove its equipment and structures from the NCR land.

It is understood the case was filed in the Kuching High Court in November 2023 based on the suit's case number provided in the bourse filing.

TH Plantations noted the native groups had back in November 2021 alleged that TH Pelita Simunjan committed encroachment on the NCR land and demanded compensation and vacation from the land.

The company said the native’s demand was disregarded by TH Pelita Simunjan on the advice of solicitors.

The solicitors' advice was on the basis that the NCR is within the NCR Land Development Area declared under the Land Custody and Development Authority Ordinance 1981, and a similar suit had previously been filed at the Kuching High Court pertaining to the same NCR land and been struck out.

According to TH Plantations, the solicitors further supplemented that TH Plantations, as a joint venture partner of the Sarawak state government agency Land Custody and Development Authority, was legally entitled to develop the NCR land free from any interference.

TH Plantations said it remains committed to defending its position and noted that based on the facts of its case, it is of the view that it has a good defence to the claims of the native groups.

Shares in TH Plantations closed half a sen or 0.83% lower at 60 sen, valuing the company at RM530.31 million.