KUALA LUMPUR (April 20): Tek Seng Holdings Bhd is appealing against a court decision requiring its wholly-owned subsidiary Wangsaga Industries Sdn Bhd to pay Tenaga Nasional Bhd (TNB) RM5.09 million in arrears. 

The court had judged in favour of TNB on March 22, ruling that an outstanding sum of RM4.33 million, together with an interest of 5% per annum and action costs of RM60,000, be paid by Wangsaga. 

"Wangsaga had contested and defended the case, as its solicitors are of the opinion that the claim is frivolous and vexatious," the plastic packaging and solar panel manufacturer said in a filing with the stock exchange today.

TNB had on July 14, 2014 instituted legal proceeds against Wangsaga for the sum.

Pending the outcome of its appeal, Tek Seng said Wangsaga made a provision for the material litigation, which has resulted in a deviation of 15.67% between the group's unaudited and audited financial statements for the financial year ended Dec 31, 2017 (FY17).

"There is no operational impact on the group," the group said. 

Tek Seng shares closed down one sen or 3.03% at 32 sen today, with 210,200 shares done, bringing a market capitalisation of RM111.4 million.