RHB confirms named as defendant in RM313m Taman U-Thant suit, to contest claims

• The lawsuit centres on the sale of a luxury condominium site in Taman U-Thant for RM145 million in December last year, which belonged to the plaintiff and charged to RHB as security for banking facilities, according to RHB in a bourse filing on Tuesday.

KUALA LUMPUR (April 15): RHB Bank Bhd (KL:RHBBANK), the country's fourth-largest lender by assets, has been named as the third defendant in a RM313.08 million lawsuit filed by Prismaworld Embassyview Sdn Bhd in the High Court here.

The lawsuit centres on the sale of a luxury condominium site in Taman U-Thant for RM145 million in December last year, which belonged to the plaintiff and charged to RHB as security for banking facilities, according to RHB in a bourse filing on Tuesday.

Also named as defendants are Paramount Corp Bhd's (KL:PARAMON) 70%-owned unit, Tanah Bayumas Sdn Bhd, along with Datuk Adam Primus Varghese Abdullah and Macpherson Simon of Adamprimus & Co as the second defendants.

RHB said that Prismaworld is seeking several declarations, including that the agreement on the sale and purchase of the land is null and void, and that RHB breached its duty of care.

Prismaworld is also pursuing an injunction to prevent all the three defendants from dealing with the land pending a proposed sale to Al Shamal L.L.C-FZ, and also requests a redemption statement from RHB to facilitate the transaction.

The suit includes a demand for RM313.08 million in damages, along with rectification of land title records to restore Prismaworld as the registered proprietor.

RHB clarified that land was sold by the owner plaintiff (Prismaworld) in receivership, and not by the bank.

“In any event, the property remains charged in favour of RHB Bank until and unless the redemption sum is paid to discharge the charge irrespective of whom the purchaser is,” RHB said.

Therefore, RHB has appointed solicitors to take the necessary steps to defend the suit.

“The solicitors are of the view that RHB Bank has a good defence to the plaintiff’s claim and the application for an interim injunction,” it added.

The bank also does not expect any financial or operational impact arising from the proceedings.

The interim injunction application is scheduled for hearing on May 20.

RHB shares closed up five sen or 0.76% at RM6.64 on Tuesday, valuing the bank at RM28.95 billion.

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