11 hours ago
- Business
- New Straits Times
T7 Global takes legal steps to secure RM22.9mil from VME Process Systems
KUALA LUMPUR: T7 Global Bhd's unit Tanjung Offshore Services Sdn Bhd (TOS), is stepping up efforts to recover RM22.88 million awarded by the court by going after funds owed to VME Process Systems Malaysia Sdn Bhd and its Singapore-based affiliate.
The move comes after the Kuala Lumpur High Court, in a judgment dated July 5, 2024, ruled in favour of TOS in its legal suit against both VME entities.
In an update to Bursa Malaysia, T7 Global said that VME has since appealed the decision to the Court of Appeal. The hearing for the appeal has been scheduled for October 21.
"In the meantime, TOS has initiated garnishee proceedings to enforce the judgment," the company said in a bourse filing today.
TOS filed two garnishee applications, the first on March 19, against Standard Chartered Bank Malaysia Bhd, and the second on June 20, against MTC Engineering Sdn Bhd.
The application against Standard Chartered Bank is premised on the belief that VME maintains a bank account with the financial institution. The hearing has been fixed for August 14.
As for the application against MTC, TOS is seeking to redirect funds owed by MTC to VME pursuant to a separate High Court case, where VME had successfully sued MTC for unpaid invoices totalling over US$25.6 million related to a terminated contract with Sandakan Offshore (M) Sdn Bhd.
The High Court held that MTC's obligation was a direct principal obligation and not a conditional guarantee, making it liable to pay VME directly.
"Based on this, TOS is seeking to recover its judgment sum by way of garnishee proceedings against MTC," the company said.
TOS's is currently awaiting a sealed notice of application and the case management date for the garnishee action against MTC.
