ENRA Group Berhad Annual Report 2019

146 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 43. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (cont’d) (b) Claim against Gemula Sdn. Bhd. (cont’d) On 6 September 2018, the Adjudicator had determined in EEFAB’s favour that: (a) Gemula shall pay EEFAB the total outstanding sum of RM10.22 million; (b) Gemula shall pay EEFAB interest at the rate of 5% per annum on each invoice claimed by EEFAB from its respective due date for payment until full and final settlement; and (c) Gemula shall pay the total costs of adjudication in the amount of RM132,594. (collectively “Adjudication Decision”). On 8 October 2018, EEFAB had applied to the High Court of Malaya at Kuala Lumpur to enforce the Adjudication Decision for CIPAA Payment Claim. On 1 November 2018, a sealed Originating Summons was served on EEFAB by Gemula to set aside the Adjudication Decision on the grounds that the Adjudicator had acted in excess of his jurisdiction and had not acted impartially. On 8 January 2019, the High Court held: (a) Gemula’s application to set aside the Adjudication Decision for CIPAA Payment Claim was dismissed with costs in the sum of RM15,000; and (b) the application by EEFAB to enforce the Adjudication Decision for CIPAA Payment Claim as a judgement or order of the High Court was allowed with costs in the sum of RM10,000 to be paid by Gemula. On 29 January 2019, EEFAB received the Notice of Appeal from Gemula to appeal against the decision of the High Court dated 8 January 2019. The Court of Appeal has fixed the hearing for the Enforcement and Setting Aside appeals by Gemula to be heard together on 27 August 2019. On 4 March 2019, EEFAB, through its solicitors, served Notice of Demand to Gemula demanding payment of the sum totalling RM10.38 million. Subsequently, on 27 March 2019, EEFAB, through its solicitors, filed a winding up petition at the High Court against Gemula as they had failed to pay the sum owing set out in the Notice of Demand after the expiration of 21 days from the date of the service of the said Notice of Demand. The hearing for the winding up is fixed on 25 June 2019 at the Insolvency Courtroom in Kuala Lumpur High Court. EEFAB will continue to pursue the recovery of the full amount owed by Gemula, including the other monies instructedby theHighCourt for Gemula topay EEFABdespite the provision of impairment made on this receivable.