44. COMMITMENTS AND CONTINGENCIES (CONTINUED) b) Contingent liabilities On 18 October 2021, Perbadanan Harta Intelek Malaysia (“Plaintiff”) filed a civil suit against BIMB Investment Management Berhad (“First Defendant”), a wholly owned subsidiary of the Bank and Ahmad Azwan Bin Aboo Mansor (“Second Defendant”). Plaintiff pleaded that the Defendants are liable for loss and damage caused by the Defendants fraudulent misrepresentation, negligent misrepresentation, negligence and breach of statutory duty on the placement of deposit in the sum of RM85,530,000.00 by Plaintiff to First Defendant upon representation made by Second Defendant to Plaintiff. The sealed Writ and Statement of Claim dated 18 October 2021 was served to Messrs Ganesan & Irmohizam (“First Defendant’s Solicitors”) on 25 October 2021. The Plaintiff claimed for the following: 1) RM43,958,509.29 being the difference between the balance sum and total principal sum deposited; 2) RM15,910,619.62 for loss of profit on deposit sum; 3) Alternatively, RM11,443,914.00 for lost of profit on deposit sum; 4) General damages; 5) Exemplary damages; and 6) Interest. The First Defendants Solicitors had entered Appearance on 8 November 2021 and has requested for an extension of two weeks from 24 November 2021 to file Defence. The Court fixed for next Case Management on 24 November 2021. On 24 November 2021, the Court directed First Defendant to file Defence on 8 December 2021 and Plaintiff to file Reply to Defence by 5 January 2022. During the case management held on 18 July 2022, the Court made the following directions in relation to Enclosure 32 (First Defendant’s Notice of Application seeking original documents for forensic examination: 1) Plaintiff shall file and serve its Affidavit in Reply on or before 29 July 2022; 2) First Defendant shall file and serve its Affidavit in Reply on or before 12 August 2022; 3) Both Parties shall file respective written submissions simultaneously on or before 23 August 2022; 4) Both Parties shall file respective written submissions in reply simultaneously on or before 30 August 2022. The next Case Management is fixed on 26 April 2024, where the full trial of this suit has been scheduled on 27th, 28th and 29th of May 2024. The potential liability of BIMB Invest if there was an adverse decision related to the claim is estimated to be approximately RM59.8 million. The possible obligation towards BIMB Invest to settle the litigation claim are subject to decision by the court and as the case are still preliminary, the settlement to the litigation claim may not be probable at this juncture and therefore no provision is recognised in the financial statements. 399 1 2 3 4 5 6 7 8 9 www.bankislam.com FINANCIAL STATEMENTS
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