Widad Group appealing court decision on payments claims tied to Langkawi project

KUALA LUMPUR (March 12): Widad Group Bhd (KL:WIDAD) said the group is appealing against the High Court’s dismissal of its application to set aside an adjudication decision relating to payments claims linked to the Langkasuka development in Langkawi.

The Court of Appeal will hear the appeal against subcontractor Menta Construction Sdn Bhd on July 30, said Widad in an exchange filing on Wednesday.

The dispute stems from a subcontract awarded in 2022 for site clearance, earthworks, retaining wall and environmental protection works at the Langkasuka project, the group said.

Towards the end of 2024, the adjudicator ruled in favour of Menta and awarded it RM3.46 million in outstanding payments, along with interest, RM35,000 in adjudication costs, and RM48,585 in adjudicator and administrative fees.

Widad — whose largest shareholder is Hextar Technologies Solutions Bhd (KL:HEXTECH) — subsequently applied to set aside the adjudication decision, while Menta sought to enforce it through court. The High Court dismissed Widad's applications in August 2025, and allowed Menta to enforce the decision.

Menta has since initiated garnishee proceedings to recover about RM4.28 million, the filing noted, adding that the High Court has fixed April 21 to decide whether to grant the garnishee order.

Widad said the legal action is not expected to have any material adverse impact on the group’s financial position, liquidity, gearing or operations, aside from legal costs and interests.

Shares of Widad Group closed flat at 1.5 sen on Wednesday, valuing the group at RM46.8 million.

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