Page 239 - EXIM_AR2021

ANNUAL REPORT 2021 237

Notes to the fiNaNcial statemeNts

46. material litigatiOn

On 31 August 2010, EXIM Bank (“Plaintiff”) filed an action against a group of three individuals and a company incorporated
in Malaysia (collectively the “Defendants”) at the Seremban High Court (“the Court”) and inter alia claimed for special
damages sum USD37,081,271 (“EXIM Bank’s Claim”). The Defendants counterclaimed by alleging inter alia that EXIM Bank
breached its duty of care by not obtaining a proper valuation prior to the sale of the Secured Property and hence, the sale was
undervalue and the Defendants suffered damages (“the Counterclaim”). On 27.01.2014, the Court allowed the EXIM Bank’s
claim and granted the judgment sum of USD1,294,154 (as at 22.03.2013) in favour of EXIM Bank. Pertaining to the Defendants’
counterclaim, the High Court allowed the Counterclaim and inter alia held that (a) a fresh valuation to be conducted on the
Secured Property to determine the direct loss due to the undervaluation of the Secured Property at the time of the sale,
(b) EXIM Bank is to release and discharge all Third Party Legal Charges listed in Schedule 3 of Facility Agreement
dated 19.01.2004, (c) general damages to be assessed. EXIM Bank has instructed its solicitors and now in the midst of
proceeding to (i) lodge an appeal against the Court’s decision on 03.03.2022 and (ii) to apply for a stay against the Court’s Orders
dated 03.03.2022.