Battling legal issues in multiple front, Country Heights Holdings Berhad was hit with another negative outcome, after its subsidiary Country Heights Smart Living Sdn. Bhd. was ordered to be wound up by the High Court of Malaya following a winding-up petition filed by Lean Xing Construction Sdn. Bhd.
The group said the Shah Alam High Court on June 18, 2026 allowed the winding-up petition under Petition No. BA-28NCC-548-09/2024 and ordered CHSL to be wound up pursuant to the Companies Act 2016.
The company said it is currently in the process of obtaining the sealed court order and seeking legal advice on the implications of the decision, including available legal options such as filing an appeal.
The winding-up petition was initially filed by Lean Xing Construction on September 5, 2024 and served on CHSL on September 12, 2024.
The petition was related to an alleged failure by CHSL to comply with a statutory demand amounting to RM3.12 million. The claim was based on an adjudication decision dated June 10, 2024 obtained by Lean Xing under the Construction Industry Payment and Adjudication Act 2012 (CIPAA), relating to construction works carried out for a residential development project in Kubang Pasu, Kedah.
The amount claimed comprised an adjudicated sum of RM2.61 million, together with accrued interest and adjudication-related costs as of July 17, 2024.
Lean Xing had sought several orders, including the winding-up of CHSL, appointment of a liquidator, and related costs arising from the proceedings.
CHHB said CHSL is not a major subsidiary of the group and does not expect the court decision to have a material operational impact on the company and its subsidiaries.
The group disclosed that its total investment cost in CHSL was approximately RM2.85 million.
The company added that CHSL’s existing assets are more than sufficient to cover the claims made by the petitioner.
