Hot Stock DPS Resources surges 15% on winning legal tussle

by **Cals** Thu 12 May 2016, 23:06

Hot Stock

[size=28]DPS Resources surges 15% on winning legal tussle

By Surin Murugiah / theedgemarkets.com | May 12, 2016 : 10:30 AM MYT

KUALA LUMPUR (May 12): DPS Resources Bhd shares surged 15% this morning after it won a legal tussle with Hong Leong MSIG Takaful Bhd.

At 10.10am, DPS rose 1.5 sen to 11.5 sen with 12.29 million shares done.

The company yesterday told Bursa Malaysia that on April 22, the Court of Appeal delivered its decision on the appeal filed by MSIG.

The Court of Appeal dismissed the appeal by MSIG on the issues of liability and interest and thereby affirmed the High Court decision on the said issues.

However the Court of Appeal allowed the appeal by MSIG in parton the issue of quantum; whereby the Court of Appeal directed that the matter be sent back to the High Court for a reassessment of damages.

To recap, the company’s unit Shantawood Sdn Bhd (SSB) had on Dec 29, 2012 filed a suit at the High Court in Shah Alam against MSIG to recover the loss and damages of RM24,219,074.00 ("Fire Claim") as a result of MSIG repudiating the claims made by SSB under the fire insurance policies taken up by SSB from MSIG for the Fire incidents.

MSIG had on Feb 25, 2013 filed its Statement of Defence disputing the Fire Claim.

On Sept 26, 2014, the Court had allowed SSB's claim and had awarded SSB a sum of RM19,496,398.90 ("Judgment Sum") and the cost of RM50,000.00 together with the interest rate of 5% per annum to be calculated from 14 July 2011 until the full and final settlement of the same ("Judgment").

MSIG subsequently filed a notice of appeal to the Court of Appeal against the Judgment and made an application for stay of execution of the Judgment with the High Court on Oct 20, 2014.
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