Bina Puri to appeal summary judgment in RM28.2 mil suit from Wisma Majujaya

• The suit revolved around an alleged RM28.17 million sum in returns Wisma Majujaya purports to have been owed as stipulated in a joint venture agreement (JVA) plus interest Bina Puri failed to pay it.

KUALA LUMPUR (Feb 4): Bina Puri Holdings Bhd (KL:BPURI) said the company is appealing against the summary judgment obtained by Wisma Majujaya Sdn Bhd in the RM28.17 million suit filed against it, its wholly owned unit Bina Puri Properties Sdn Bhd, and deputy executive chairman Tan Sri Tee Hock Seng.

The summary judgment, which was granted in the Shah Alam High Court on Monday, also ordered Bina Puri and the other defendants to pay the judgment sum of RM28.17 million with 8% interest within 14 days.

In filing with the local bourse on Tuesday, the property developer said it had directed its lawyers to file an appeal and a stay (halt the execution) of the summary judgment.

The suit revolved around an alleged RM28.17 million sum in returns Wisma Majujaya purports to have been owed as stipulated in a joint venture agreement (JVA) plus interest Bina Puri failed to pay it.

The relevant JVA was allegedly inked in November 2017 and pertained to a development in Johor Bahru called Puri Residence.

Wisma Majujaya claimed to have contributed RM10 million for the development under the JVA. Bina Puri then purportedly agreed to pay Wisma Majujaya up to RM26 million in return for the amount of investment with 8% interest per annum in the event of late payment. 

Bina Puri said it maintains there is no “valid and enforceable” JVA or joint venture development with Wisma Majujaya.

“The RM10 million advance by the plaintiff was an unlicensed money lending transaction. In light of the above, the company opined that disclosing the details of the JVA and making any related announcement would be inappropriate,” it said.

The company also said the JVA makes no provision for roles and responsibilities of parties, equity interest or progressive/stage payment in relation to the purported JV development.

“The RM28.17 million sought by the plaintiff consists substantially of interest charges, following Bina Puri Properties' repayment of RM7 million,” it also noted.

Served with winding-up petition from EXIM Bank

Meanwhile, in a separate bourse filing, Bina Puri said it has been served with a winding-up petition dated Nov 25, 2024, from Export-Import Bank of Malaysia Bhd (EXIM Bank).

Bina Puri said EXIM Bank served the winding-up petition on the basis the company failed to pay sums of US$4.9 million (RM21.75 million) and RM17,253.47.

“The company remains in discussions with the petitioner [EXIM Bank] to resolve the matter amicably,” it noted. 

Addressing the delay in making the announcement on Bursa Malaysia, Bina Puri said it believed that making any announcement prior to this would have been premature, reasoning the company is still in negotiations over the disputed sum.

The date of hearing for the winding-up petition has been fixed on Feb 26, 2025.

Shares in Bina Puri ended unchanged at 30.5 sen, valuing the company at RM245.82 million.

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