The Federal Court’s three judges—Datuk Seri Hasnah Hashim, Datuk Zabariah, and Datuk Hanipah—unanimously dismissed two leave-to-appeal applications filed by the applicant, GTM Land & Property Sdn. Bhd.

The two applications challenged the Court of Appeal’s ruling on September 6, 2024, which upheld the Penang High Court’s judgment on December 4, 2023. The High Court had ordered GTM Land & Property Sdn. Bhd. to repay Global Tobacco Manufacturers (International) Sdn. Bhd. a total of RM14,471,137.44, along with interest and legal costs. Additionally, the applicant’s request to stay the entire legal proceedings under Section 470 of the Companies Act 2016 was also dismissed.

Global Tobacco Manufacturers (International) Sdn. Bhd. and GTM Land & Property Sdn. Bhd. had signed a Memorandum of Understanding (MoU) on January 11, 2011, followed by a Joint Venture Agreement (JVA) on November 26, 2012. The agreement aimed to jointly develop land owned by Global Tobacco Manufacturers (International) Sdn. Bhd. in the Central Seberang Perai district of Penang (Geran No. Hakmilik 19153, 19154; Geran Mukim No. 14 & 15; Lot No. 1112, 1113, 1205, and 1207). The project, named “Tropicale Residency,” sought to transform the land into a residential and commercial development.

According to the agreement, Global Tobacco Manufacturers (International) Sdn. Bhd. was to receive RM25,454,660 as consideration along with designated plots of land. However, financial records showed that GTM Land & Property Sdn. Bhd. had only made partial payments, leaving an outstanding balance of RM14,471,137.44.

With the Federal Court dismissing the two leave-to-appeal applications today, the Penang High Court’s ruling by Judge Datuk Anand on December 4, 2023, remains in effect, requiring the defendant to repay RM14,471,137.44 to Global Tobacco Manufacturers (International) Sdn. Bhd.

Chen Yong Liang and Zhong Mei Zhu are the current directors of Global Tobacco Manufacturers (International) Sdn. Bhd. Given the Federal Court’s unanimous dismissal, the applicant is also required to pay RM30,000 in legal costs to Global Tobacco Manufacturers (International) Sdn. Bhd., along with certification fees.

Meanwhile, Global Tobacco Manufacturers (International) Sdn. Bhd. has filed a winding-up petition against GTM Land & Property Sdn. Bhd. to recover RM14,471,137.44 plus interest. The hearing for this petition is scheduled for April 16, 2025. On the same date, GTM Land & Property Sdn. Bhd.’s application to stay the winding-up petition will also be heard.

The legal team representing the plaintiff consists of Lin Ai Qing, Chen Wei Jie, Liu Kai Xin, Liang Jun Hui, and Chen Hong Kai. The defense team includes Roparajah, Dayalan, Zhong Jun Ming (transliterated), and Siva..

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