Scomi withdraws suit against Prasarana


KL Monorail - Filepic

KUALA LUMPUR: Scomi Engineering Bhd’s subsidiary Scomi Transit Projects Sdn Bhd (STP) has withdrawn its legal suit and injunction against Prasarana Malaysia Bhd over the KL Monorail expansion contract.

Scomi said on Friday that Prasarana had given an undertaking to the court on Friday morning that it would not be relying on its two notices (Jan 4 and Feb 18, 2016) to terminate the KL Monorail expansion contract.

“Accordingly, the legal suit and injunction were withdrawn without prejudice to STP’s rights to commence other legal actions or to apply for another injunction or other relief against Prasarana whether in relation to the Prasarana’s notice dated March 8, 2016, the KL Monorail expansion contract and/or the Kuala Lumpur Monorail fleet expansion project or otherwise,” it said.

To recap, on March 1, STP had obtained an ex parte injunction against Prasarana restraining it from wrongfully terminating a RM494mil contract to, among others, deliver 12 sets of new four-car monorail trains. This injunction was extended by the court to March 4 and subsequently to Friday.

On March 8 Prasarana said it had issued a notice of remedy to Scomi, giving it 60 days from March 8, 2016 to comply.

If Scomi fails, Prasarana said it “would be at liberty to terminate the principal contract dated June 3, 2011, the supplemental agreement dated April 16, 2014, and the second supplemental contract dated April 15, 2015.”

A week later, Scomi announced to Bursa Malaysia that Prasarana had said it would not rely on its Jan 4 and Feb 18 notices to STP to terminate the Kuala Lumpur Monorail expansion contract.


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