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Annual Report 2020

218

Notes to the Financial Statements

As at 31 March 2020

kumpulan Fima Berhad

(197201000167)(11817-V)

46. Material litigation (cont'd.)

Hak Guna Usaha No. 01/Nunukan Utara (cont'd.)

PTNJL subsequently filed a further application for judicial review against the JR Decision (“2

nd

JR Application”).

PTNJL’s application for the 2

nd

JR Application is made on grounds that the JR Decision contradicts some aspects of

other established cases and the discovery of new material evidence that was not previously available. As at today,

the Supreme Court has not issued any decision in respect of the 2

nd

JR Application.

(b)

On 28 November 2019, PTNJL has filed a civil suit in the State Administrative Court ("the Court") against the NLB

and a Third Party (collectively, Defendants"). The President Republik Indonesia and Minister of Environmental Affairs

and Forestry of Republic of Indonesia ("Ministry") have been named as co-defendants in the said suit.

PTNJL is seeking legal recognition of its rights over HGU; an injunction to:

(i)

order NLB and Ministry to issue permit, recommendation, or approval for PTNJL to undertake its plantation

activities;

(ii)

bar the Third Party from preventing PTNJL from undertaking its plantation activities within the HGU areas

which overlap with the Third Party's operating permits/interests; and

(iii) restrain the Minister from issuing any new licences permits or approvals to any parties on or within the

HGU.

PTNJL is also seeking an order from the Court to stay the enforcement of the Ministerial Order dated 25 July 2016

pending full and final determination of the matter by the Indonesian Courts.

On 6 May 2020, the mediation held between PTNJL, Defendants and Co-defendants has failed. Accordingly, the

matter will now proceed to Court for determination.

Legal action against Datasonic Technologies Sdn. Bhd.

On 30 July 2018, Percetakan Keselamatan Nasional Sdn. Bhd. (“PKN”), a wholly-owned subsidiary of the Company’s

subsidiary, Fima Corporation Berhad (“FimaCorp”), has on the same day, commenced a High Court action against

Datasonic Technologies Sdn. Bhd. ("DTSB").

The claim is for a sum of RM24,975,000 (excluding interest and cost), being the amount due and owing by DTSB to PKN

for 1.5 million Malaysian passport booklets which were supplied by PKN to DTSB.

At the request of DTSB during the case management on 3 October 2018, PKN agreed to attempt mediation with the aim

of arriving at an amicable resolution. The mediation took place on 17 October 2018 and 19 October 2018. However, the

parties could not reach a resolution.

The matter has been fixed for trial on 13, 14, 27 and 28 August 2020.

This civil suit is not expected to have any material impact on the financial and operational position of the

Company.