33. Contingent liabilitIES
(i) On 30 March 2011, the Company and a Subsidiary, Boustead Pelita Kanowit Sdn Bhd (BPK), were named
the 4th and 5th Defendants respectively to Sibu High Court Suit No. 21-7-2009 in relation to a claim filed
by 5 individuals suing on behalf of themselves and 163 other proprietors, occupiers and claimants of the
Native Customary Rights lands (NCR) (Plaintiffs) situated in Sg. Kelimut, Kanowit District, also known as
Block D1 in Kanowit District, described as Kelimut Estate (NCR Lands) against Pelita Holdings Sdn Bhd (1st
Defendant), the Superintendent of Lands and Surveys, Sibu, Sarawak (2nd Defendant) and the State
Government of Sarawak (3rd Defendant) for inter-alia, a declaration that the trust deed between the
Plaintiffs and the 1st and 3rd Defendants are null and void, damages and costs.
On 30 April 2012, the Sibu High Court delivered its decision on the litigation, judging in favour of the
Plaintiffs’ claim and found the Principal Deed dated 14 January 2002 executed between the 1st Defendant,
the 3rd Defendant and the Plaintiffs in relation to the development of the NCR Lands as null and void and
the joint venture agreement dated 6 May 1998 between the Company and the 1st Defendant as deemed
null and void. In the same judgment, the Sibu High Court had dismissed the Company’s and BPK’s counter
claim against the Plaintiffs with costs. The Company and BPK filed an appeal on 3 May 2012.
On 30 October 2012, the Sibu High Court granted the Company’s and BPK’s application for Stay of
Execution until after the full and final determination of their appeal. On 6 August 2014, the Court of Appeal
allowed the appeal by Defendants against the Plaintiffs. The Court had ruled in favour of BPK and the
other appellants and reversed the decision of the Sibu High Court dated 30 April 2012.
On 10 September 2015, the Federal Court heard the Plaintiffs’ Notice of Appeal against the Court of
Appeal’s decision and delivered an unanimous decision to dismiss the Plaintiffs’ motion.
(ii) The natives in the area of Sungai Lelak Estate, which is held by Boustead Pelita Tinjar Sdn Bhd (BPT), a
Subsidiary, are making claims over native customary rights (NCR) lands of the estate. The consent
judgement of the High Court of Miri dated 7 May 2009, has called for a joint survey of lands under NCR to
be carried out and for payment of compensation for such NCR lands at a rate of RM1,500 per hectare (ha).
On 26 November 2015, the Department of Land and Survey, Sarawak approved the survey plan for a total
of 1,361 ha. BPT has provided for the compensation to the natives for 1,361 ha amounting to RM2.0 million.
The natives are however, not agreeable with the above surveyed NCR area and have requested for another
joint survey to be carried out.
As the compensation provision was made on the basis of the approved survey from the relevant authority,
the Group is of the view that the amount provided is adequate and no further provision is required.
an n ual repo rt 2015
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