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Oxley Holdings provides further information on lawsuits
OXLEY Holdings has provided further information on lawsuits involving four of its entities, in an exchange filing on Monday afternoon. This follows a commentary by The Business Times earlier this month in relation to Oxley's disclosure practices.
In relation to a claim against its wholly-owned subsidiary Oxley Gem by Gracious Land, Oxley said Oxley Gem had in January 2019 accepted a letter of intent from Gracious Land for the purchase of the Novotel and Mecure hotels at Stevens Road for S$950 million. Gracious Land also paid a S$9.5 million deposit.
Gracious Land later decided not to proceed with the purchase, and Oxley Gem rejected its request for the deposit to be returned. Gracious Land thus commenced arbitration to recover the deposit.
Oxley Gem has filed a counterclaim against Gracious Land for GST output tax in the sum of S$665,000 or damages to be assessed, plus interest. These legal proceedings are ongoing, Oxley said on Monday.
Another of its units, Oxley Jasper, is facing legal proceedings relating to an agreement signed in March 2018 when it had planned to buy all units in Ampas Apartment for S$95 million. Oxley Jasper had paid deposits amounting to nearly S$4.8 million and stamp duty totalling close to S$3.8 million.
However, as a condition precedent in the agreement was not been met, Oxley Jasper rescinded the agreement and claimed the refund of the deposits. The sellers commenced legal proceedings to seek, among other things, a declaration that the deposits had been forfeited.
Oxley Jasper has filed a counterclaim for the refund of the deposits and applicable interest, with the case ongoing in the High Court, Oxley said on Monday.
Oxley Jasper will also claim from the Inland Revenue Authority of Singapore a refund of the stamp duty paid, once the legal proceedings are finalised.
Meanwhile, a third Oxley unit, Oxley Consortium, had been in a dispute with Geetex Enterprises Singapore, and is going through the legal process to appeal against the arbitration award in favour of the latter. The case is ongoing in the Court of Appeal, Oxley said on Monday.
Geetex had terminated the agreements for purchase of two units at Oxley Tower and sought a refund of the payments it made to Oxley Consortium.
The dispute was referred to arbitration, and an arbitration award in favour of Geetex was issued in October 2018. Oxley Consortium paid S$29.5 million to Geetex in February 2019 pursuant to this arbitration award.
A fourth entity facing legal proceedings is Oxley's 55 per cent-owned subsidiary Oxley Sanctuary, which is being sued by owners of 43 units at KAP Mall for allegedly misrepresenting that McDonald's and Cold Storage would be enchor tenants there. Oxley Sanctuary has refuted the owners' claims and joined the marketing agent as a third party in the suit.
Oxley said on Monday that the owners have not quantified their claim, and the case is in the High Court.
Oxley noted that its board is of the view that these litigation cases will not have a material impact on the group's financial position for its current financial year ending June 30, 2021.
Oxley shares were trading at 22.5 Singapore cents as at 4.44 pm on Monday, up 0.5 cent or 2.3 per cent.