Country Heights to ask contractor to withdraw legal action over alleged unpaid sums

• "CHHB stands firm in protecting its reputation and warns other parties considering similar legal actions to refrain from making baseless claims," the group said in a statement on Thursday.

KUALA LUMPUR (Sept 19): Country Heights Holdings Bhd (KL:CHHB) said it will request a contractor for the group's residential project in Kedah to withdraw its legal action against the group's subsidiary, Country Heights Smart Living Sdn Bhd, over alleged unpaid payments.

If the contractor, Lean Xing Construction Sdn Bhd, refuses to withdraw the petition that has been filed against the subsidiary, CHHB will proceed to inform Bursa Malaysia of the potential reputational harm caused by the legal action, the group said.

"CHHB stands firm in protecting its reputation and warns other parties considering similar legal actions to refrain from making baseless claims," the group said in a statement on Thursday.

CHHB said the dispute revolves around alleged unpaid sums related to the construction of 90 "super-linked modern contemporary houses" in the group's development project in Kolej Heights Utara in Jitra, Kedah. 

The unpaid sums, according to CHHB, are tied to the ongoing liquidated ascertained damages (LAD) and variable orders, which are yet to be finalised. As a result, the group said the accounts related to the project remain open, and no payments can be made to Lean Xing Construction at the current juncture pending the resolution and ascertainment of the LAD.

However, CHHB did not clarify the value of the alleged unpaid sums.

"Furthermore, the final construction account for the project is currently being prepared and is pending final review and sign-off by the appointed architect. This ensures that all works have been completed in accordance with the contractual scope and quality standards," CHHB said.

"CHHB remains committed to ensuring the highest level of accountability and will only settle outstanding sums upon proper validation and completion of this final step," it added.

In another case, CHHB reiterated that the group had fully settled its obligations to law firm Messrs Chellam Wong and that the matter between the two parties had been resolved.

"Despite the nature of the proceedings and the incomplete status of the corporate exercise, CHHB acted responsibly to resolve the matter, fully settling its obligations to [Messrs Chellam Wong] in accordance with the company’s principles of accountability and integrity," it said.

Last week, CHHB said it paid the RM425,060 legal fees it owed the law firm without any admission of liability. Following that, Messrs Chellam Wong agreed to withdraw the winding-up petition that the firm had filed in July at the High Court.

The dispute concerned alleged unpaid legal fees for services that the law firm had provided in relation to CHHB’s corporate exercise.

Shares of CHHB rose two sen, or 8.7%, to close at 25 sen on Thursday, with a market capitalisation of RM74.85 million.

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