ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS ENRA Group Berhad | Annual Report 2021 182 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 41. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (cont’d) (a) Development on claim against Gemula Sdn. Bhd. (Cont’d) 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 (“Winding Up Petition”). On 25 June 2019, the Kuala Lumpur High Court granted the Winding up Petition initiated by EEFAB against Gemula together with RM15,000 costs to be paid by Liquidator out of assets of Gemula (“Winding Up Order”). On 23 July 2019, Gemula served a Notice to Appeal the Winding Up Order (“Winding Up Appeal”). On 20 January 2020, Gemula filed a Notice of Discontinuance of the CIPAA Appeals which was confirmed by the Court of Appeal on 5 February 2020 by way of e-review. The CIPAA Appeals are discontinued and withdrawn without liberty to file afresh. The written orders of the High Court for the enforcement of the Adjudication Decision is in favour of EEFAB and the winding up of Gemula has been obtained and remains valid. (b) Claim against a principal With reference to Paragraph 40 (a) above, EEFAB filed an Originating Summons in the High Court in KL pursuant to Section 30(1) of CIPAA to apply for, inter alia, an order against the Government of Malaysia (“Government”) for payment of the sum of RM3,864,055 as monies due and owing by the Government as the principal of the Project to Gemula (currently in liquidation) being the party against whom the Adjudication Decision was made, to be made directly to EEFAB only for the purpose of satisfying any amounts due and owing by Gemula to EEFAB under the Adjudication Decision. EEFAB had, on 27 August 2020, served the sealed Originating Summons on the Attorney General’s Chambers. On 8 February 2021, EEFAB received from its solicitors, a sealed consent order dated 3 February 2021 that the parties have achieved the following settlement: i. Without admission of liability, the Defendant shall pay the Plaintiff the full sum of RM3,836,454 (“Settlement Sum”). ii. The payment of the Settlement Sum by the Defendant to the Plaintiff represents the full and final settlement of the claims in this Originating Summons Application. iii. The payment of the Settlement Sum shall be made on or before 31 March 2021. iv. Upon payment of the Settlement Sum, the Plaintiff has no further claims and/or actions against the Defendant arising from this Originating Summons Application. v. The Plaintiff and the Defendant shall bear their own respective costs and expenses arising from this Originating Summons Application. The Plaintiff and the Defendant shall bear their own respective costs and expenses arising from this Originating Summons Application. By 31 March 2021, EEFAB has received the full settlement sum from Defendant. With this payment, the case is officially closed.