Page 260 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

5.3.2 Dispute over Parking Space for 5.3.3 Disputes Relating to the
Central Chidlom Department Construction of the Robinson
Store Saraburi Project

A land plot located adjacent to Central Chidlom Robinson is a land tenant from an associated company of
department store that the Group had rented to be used as HCDS (lessor) to operate the Robinson Department Store
parking space for the mall has come under a legal dispute Project, Saraburi Branch. It has been operating for
in Thailand. The owner of the land plot filed a lawsuit the public since 22 November 2013, until the present
against the Group and an HCDS associated company (building permits issued on behalf of HCDS associates).
in a civil case involving damages of Bt3,815 million. During the construction of the building (as of 11 October
The Group was accused of breaching the land lease for 2013), an owner of a land plot next to the land of the
failing to return the rented land plot when the lease Robinson Project Saraburi Branch claimed to have
expired on 31 December 2018. The plaintiff argued that suffered damage from the construction, and filed
due to the fact, its auction to find a new tenant failed to a lawsuit against the president of the Subdistrict
attract any interest. The dispute also involves claims over Administrative Organization and associates of HCDS to
the boundary line of the rented land plot that must be the Central Administrative Court, requesting the revocation
returned after expiry of the land lease and a question of the construction and prohibition to the Company and
whether the structures built before or during the lease whoever from entering the building, and to demolish
extend beyond the boundary line. The land owner the entire building immediately, claiming that
requested a court order for the Group to return the Robinson Saraburi Branch was constructed in
the rented land plot in accordance with the boundary violation of the Ministerial Regulation to enforce
line claimed by the land owner (or the Group may the Saraburi Total City Plan 2011 (Town Planning Law).
purchase the disputed section from the land owner). Also, The plaintiff claimed that Robinson Saraburi Branch is
the plaintiff asked the court to rule that the Group a large building with a combined area of more than

dismantle part of the structures that the land owner 2,000 square meters, but did not produce an environmental
claimed to have intruded beyond the rented land impact assessment report (EIA), with construction in violation
plot’s boundary line and that the Group pay a fine of of the land allocation law, namely the Announcement of
Bt22.6 million and an additional daily fine of 200,000 the Revolutionary Council No. 286 (partial construction
baht until a complete return of the rented land and overlaps the original entrance and exit servitude), etc.
demolition of the structures, in addition to damages of
Bt3,581.2 million jointly responsible by the Group and Later on 22 December 2016, the Central Administrative
the HCDS associated company. Court ruled that the construction of the building violated
the law, and is a case that cannot be corrected.
As of 31 December 2020, the case was being tried by The Court assessed that the president of the Sub-District
the Civil Court of Southern Bangkok. The court called Administrative Organization has neglected his/her duties
hearing of the plaintiff’s witnesses on 14 and 15 July, and as required by law, therefore adjudicated the President of
2 November 2020 and hearing of the defendant’s witnesses the Sub-district Administrative Organization an order to
on 9 and 23 November 2020. On 2 February 2021, force the HCDS associates to demolish the building
the Civil Court of Southern Bangkok dismissed the case within 180 days from the date of the final judgment of
and ordered the plaintiff to return the rental surety bond the Court. Subsequently, the president of the Sub-district
in full amount to the Group, plus interest of 7.5 per cent per Administrative Organization and HCDS’s associates
annum (in accordance with the Group’s countercharge). filed an appeal against the case with the Supreme
The court ruled that the Group did not breach the land Administrative Court on 20 January 2017. The court has
lease or commit any infringement against the plaintiff. issued an order accepting the appeal.
During the production of this publication, the plaintiff
has the right to appeal the court’s verdict.

Note: The exchange rate between the euro and the baht
mentioned in this part refers to the official rate of
37.2578 baht for one euro announced by the Bank of
Thailand as of 31 December 2020.

260 Annual Report 2021 (Form 56-1 One-Report)