We refer to our announcements dated 15 May 2017, 27 November 2017, 29 November 2017, 14 May 2018 and 1 July 2019 pertaining to the defence on a Motion to Add and Correct Complaint against Narita Motorcare (Cambodia) Co. Ltd (“Narita”), Mr. Long Narith and Ms. Pich Sokhom, the representatives of Narita (collectively, the “Plaintiffs”) filed by ETCM (C) Pty Ltd (“ETCM (C)”) and Tan Chong Motor (Cambodia) Pty Ltd (“TCMC”) (collectively, the “Defendants”), both wholly-owned subsidiaries of Tan Chong Motor Holdings Berhad (“Company”).   

Background:

On 26 April 2017, Narita filed a Motion to Add and Correct Complaint and a counter claim complaint, amongst others, to order ETCM (C) and TCMC to pay damages and compensation of USD6,550,000 to Narita, USD200,000 each to Mr. Long Narith and Ms. Pich Sokhom.

On 9 May 2017, ETCM (C) and TCMC jointly filed their defence to the Motion to Add and Correct Complaint and for Narita, Mr. Long Narith and Ms. Pich Sokhom to pay ETCM (C) and TCMC damages of approximately USD33,000,000 for actual losses and emotional damages.

The Court of First Instance in Phnom Penh ruled in favour of ETCM (C) and TCMC and ordered Narita, Mr. Long Narith and Ms. Pich Sokhom to compensate ETCM (C) and TCMC approximately USD8,037,818 for actual losses and emotional damages (“Decision of Court of First Instance”). Narita, Mr. Long Narith and Ms. Pich Sokhom filed an appeal with Court of Appeal against the Decision of Court of First Instance.

On 2 May 2018, the Court of Appeal upheld the Decision of Court of First Instance which ruled in favour of ETCM (C) and TCMC but cancelled the Damages to ETCM (C) and TCMC and instead, ordered ETCM (C) and TCMC to pay USD329,208 to Narita, represented by Mr. Long Narith and Ms. Pich Sokhom (“COA’s Award”).

ETCM (C) and TCMC appealed against COA’s Award at the Supreme Court.

On 5 June 2019, the Supreme Court in Phnom Penh upheld: -

(a) the non-existence of the agreement between ETCM (C) and TCMC with Narita;

(b) Narita is to stop harassing ETCM (C) and TCMC in all manners; and

(c) Narita is to stop using the Nissan mark in all its business operations and remove the Nissan mark and stop using it in the billboards and advertisements of any kind.

However, the Supreme Court: -

(i) dismissed the Court of Appeal’s decision on the following:

a) that ETCM (C) and TCMC  were to pay damages to Narita of the amount of USD329,208 based on the reason being is that such decision is unclear; and

b) Narita should not incur the entire litigation cost based on the reason that this order is not within the provision of the Cambodian legal provisions;

(ii) considered the Court of Appeal had omitted to decide on the compensation claimed by ETCM (C) and TCMC.

As such, the Supreme Court had made a ruling to return the appeal case to the Court of Appeal to hear and make a new decision based on reasoning on the above.

Status:

The Company wishes to inform that the Court of Appeal had decided (“Decision”) as follows:

(1)        order to ETCM (C) and TCMC to pay the damages of USD3,953,130 to Narita; and

(2)        litigation cost shall be borne by each party.

ETCM (C) and TCMC have a right to file an appeal at the Supreme Court within thirty (30) days from 27 September 2021, being the date of service of the Decision. Both ETCM (C) and TCMC are discussing with the Solicitors on the same.

Further announcement will be made should there be any material development on this matter.

This announcement is dated 4 October 2021.