A monorail train travelling along an elevated beam in Brickfields.
KUALA LUMPUR: Scomi Engineering Bhd’s unit Scomi Transit Projects Sdn Bhd (STP) has failed to launch court proceedings against Prasarana Malaysia Bhd for giving it a notice to terminate the RM494mil Kuala Lumpur Monorail expansion contract, but the contract remains in effect for now.
In a filing with Bursa Malaysia on Monday, Scomi Engineering said the High Court had dismissed last Friday the originating summons that STP filed to start legal proceedings against the KL Monorail operator, which issued the notice of termination on June 9.
At the same time, the court gave an injunction preventing the contract’s termination until Tuesday, July 26, at which time it would hear arguments as to whether the injunction should be further extended pending appeal.
In its notice on June 9, Prasarana gave STP 14 days to renew a performance bond connected with the Kuala Lumpur Monorail expansion project, failing which it would terminate the principal contract dated June 3, 2011, which was supplemented by two subsequent agreements in April 2014 and April 2015.
The following day, STP served four payment claims amounting to RM365mil on Prasarana, saying that the project was “already 83% completed”.
“STP intends to fully enforce its rights under the contract in respect of the notice (from Prasarana), including taking all necessary legal actions acting on the advice of its solicitors,” it declared on June 10.
Scomi shares closed unchanged at 21.5 sen on Monday with 185,400 shares changing hands. Prior to STP obtaining the first injunction to restrain Prasarana from cancelling the contract, its shares were hovering at the 25 to 28 sen level.
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