This comes after the High Court accepted the Inland Revenue Board’s (IRB) application to wind up the company, which also owns the 1Borneo Condominiums and hotel, Warisan Square and the 1Sulaman Condominiums.

1Sulaman has been abandoned since 2011. The project, started in 2009, was to have been completed in 2012.

IRB is claiming RM8,589,950.75 in tax arrears as per a winding-up petition advertised in the Daily Express and Overseas Chinese Daily News on Feb 25 and 26 this year.

Judicial Commissioner Douglas Cristo Primus Sikayun ruled that Sagajuta was insolvent after hearing the arguments of all stakeholders.

IRB lawyers Afidah Nor Ariffin and Noor Faizah Talip argued that if it was true that Sagajuta owned a lot of assets, it should be able to pay its taxes and debts due promptly.

They were objecting to counsel Norbett Yap and Eow Ei Pei, representing Sagajuta, asking for a postponement of the order in terms of the winding-up petition on the grounds that the IRB had rejected the company’s appeal for a reduction in the tax and penalty rate.

The company’s lawyers also informed the court that it was in the process of disposing of some high-value assets to pay IRB and others, but this would take some time.

According to the facts of the case, IRB commenced its legal action against Sagajuta on Oct 3, 2013 with a summons and a statement of claim for RM28,351,418.65 being arrears in taxes for the years 2005 to 2010 and re-assessed tax penalty amounting to RM7,679,516.25.

1Borneo Hyper Mall, the largest of its kind in Borneo, is just 7km from Kota Kinabalu city and 13km from the Kota Kinabalu International Airport.

The Hyper Mall, which has a perpetual air of construction, is home to restaurants, fancy-label clothing, department stores, entertainment outlets, appliance stores and supermarkets.

It has three hotels, three apartment block towers, a cinema multiplex, night spots and a gym. A much-touted aquarium has been canned.

It often hosts exhibitions and other events.