Page 476 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Central Retail Corporation Public Company Limited and its Subsidiaries
Notes to the financial statements
For the year ended 31 December 2021

37 Contingent liabilities

Legal dispute involving the boundary of leased land

During 2019, the owner of a plot of land for which the lease had expired served the Group with a claim
amounting to Baht 3,815 million as compensation for a dispute with regard to the boundary of the plot.
On 2 February 2021, the Civil Court dismissed the case. The plaintiff has appealed against the judgment.
On 8 December 2021, the Group filed an appeal response. The case is pending before the Appeal Court.
Management believes the plaintiff’s claims are unlikely to succeed and a provision for future payments
is not necessary.

Legal dispute involving the permits issued for the store construction in Italy

The Group leases a constructed store from a related party. The related party was served with claims by
third parties regarding the permits under which it constructed the store in Italy. The Municipality of
Rome or the ad-hoc officer may order that (i) the rebuilding and reconversion works to be demolished
in whole or in part, or a demolition order could reduce the effective net selling space of the store resulting
in the temporary closure of the store, or (ii) to forbid access to the entire store, or to require the payment
of a curing fine of at least Euro 40 million and/or for payment of damages in an amount of approximately
Euro 5 million. The hearing was held on 18 June 2020. On 9 September 2020, the judgement was issued
by the Board of the Council of State which rejected the action for the nullity of the acts advanced by the
counterparties. The building permit was issued validly and legally subject to the authority of
Municipality of Rome. However, there are still pending disputes relating to the challenge against the
building permit in respect of the content of the building permit and the claim for indemnification before
the Administrative Regional Court. The hearings for these cases have not been scheduled yet and it is
impossible to reasonably estimate the potential impact. Management believes the claims are unlikely to
succeed and a provision for future payments is not necessary.

Legal dispute involving the payment of department store construction

During 2020, the contractor company served the Group with a claim amounting to Baht 95 million as
compensation for legal dispute with regard to the breach of construction contract from a modified plan
of a department store. The case is pending before the Civil Court. Management believes the claims are
unlikely to succeed and a provision for future payments is not necessary.

Legal dispute involving the permits issued for the store construction in Thailand

The Group leases a land from a related party to operate a department store. The related party was served
with claims by a third party regarding the building permits under which it constructed the department
store in Saraburi province in order to revoke the permits. In December 2016, the Central Administrative
Court issued the judgement to the related party to demolish the building within 180 days. In January
2017, the Chief Executive of the Subdistrict Administrative Organization and the related party filed an
appeal to the Supreme Administrative Court. The court has accepted the appeal. The case is pending
before the Supreme Administrative Court. Management believes the claims are unlikely to succeed and
a provision for future payments is not necessary

476 Annual Report 2021 (Form 56-1 One-Report)
86