180
ANNUAL REPORT 2016
NOTES TOTHE FINANCIAL STATEMENTS
30 JUNE 2016
(Continued)
39. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
(a)
Investments in subsidiaries during the financial year ended 30 June 2016 are disclosed in Note 10 to the financial statements.
(b)
Material litigation
The 60% owned subsidiaries of the Company, AMSB and Mcore had filed a civil suit on 3 August 2011 against Leong Tat Yan. AMSB
and Mcore claimed against Leong Tat Yan for a sum of RM946,000 and RM2,250,000 respectively, being the proceeds of sale from
the joint venture business owed by Leong Tat Yan.
Leong Tat Yan owns 40% of the equity interest in AMSB and he is also a controlling shareholder of 388 Venture Corporation Sdn. Bhd.
which owns 40% of the equity interest in Mcore.
There are losses of RM5,389,000 arising from the dispute of which management had made the necessary impairment in the previous
financial year. The losses includes impairment loss of trade receivables amounted to RM3,196,000 and inventories written off of
RM2,193,000 (before non-controlling interest’s share of loss).
The Plaintiffs filed a Notice of Appeal on 9 April 2013 against part of the decision of the High Court dated 27 March 2013 in
connection with the service of Writ of Summons and Statement of Claim on the Defendant. The Defendant also filed a Notice of
Appeal against part of the decision of the High Court dated 27 March 2013 in connection with jurisdiction and forum.
On the hearing date of 8 July 2013, the Court of Appeal allowed the Defendant’s appeal with costs of RM10,000 and the Plaintiffs’
appeal was accordingly withdrawn with no order as to costs as it was no longer sustainable.
After discussing with their legal advisors, the Plaintiffs (also referred to as ‘Applicants’) had on 7 August 2013, filed a Notice of Motion
in the Federal Court for the following orders:
(i)
the Applicants be granted leave to appeal to the Federal Court against the whole of the decision of the Court of Appeal given on
the 8 July 2013 in Civil Appeal No. W-02(IM)(NCVC)-797-04/2013 pursuant to Sections 96 and 97 of the Courts of Judicature Act,
1964 read with Rules 55, 107 and/or 108 of the Federal Court Rules, 1995 and/or the inherent jurisdiction of the Federal Court.
(ii)
in the event that leave to appeal is granted by the Federal Court, the Applicants be granted leave to file and serve a Notice of
Appeal to the Federal Court within 7 days from the date of the order pursuant to Rule 108 of the Federal Court Rules, 1995.
(iii) the costs of the application filed by the Applicants be costs in the cause.
(iv) such further or other relief of the Federal Court may deem fit.
Leave to appeal to the Federal Court was granted on 29 January 2015.
On the hearing date of 9 November 2015, the Federal Court allowed the Applicant’s appeal and set aside the Court of Appeal’s Order
dated 8 July 2013 in whole, thereby reversing the Court of Appeal’s decision that the High Court has no jurisdiction over Leong Tat Yan.
(c)
Trademark dispute
The 70%-owned subsidiary of the Company and brand representative of the Braun Buffel brand in the Asia Pacific region, Jeco Pte Ltd.
(“Jeco”), has been engaged in court proceedings in the People’s Republic of China (“PRC”) for matter pertaining to PRC Trademark
No. 1992120 for Bull Device Mark. The Bull Device Mark is owned by Wise Luck International Ltd. (“Wise Luck”). The litigation
arose in 2008 when Jeco lodged a cancellation action against the registration of the Bull Device Mark with the Trademark Review
and Adjudication Board (China) (“TRAB”). After the TRAB decision was issued of which in favour of Jeco in 2010, Wise Luck filed an
appeal to the Beijing 1
st
Intermediate Court and succeeded in the appeal. The appeal outcome was upheld by the Beijing Higher Court
in 2012.
Jeco had applied for a re-trial of the matter at the PRC Supreme Court and in October 2015, it was notified that the application for
re-trial had been rejected by the PRC Supreme Court. Jeco does not have to pay any damages to Wise Luck.
