KUALA LUMPUR: CB Industrial Product Holding
Bhd’s palm oil mill construction unit, Modipalm Engineering Sdn Bhd, is taking TDM Bhd’s subsidiary PT Rafi Kamajaya Abadi (PT RKA) to court following a dispute over RM8.4mil in payment obligation.
TDM, which is majority owned by the Terengganu government’s investment arm Terengganu Inc, told Bursa Malaysia that Modipalm had made an application for suspension of debt payment obligations (PKPU) against its 93.7% subsidiary, PT RKA, in a Jakarta district court.
Modipalm claimed that the sum of US$1.63mil (RM7.24mil) (import portion) and RM3.58bil rupiah (RM1.19mil) (local portion) was due and payable to it.
PT RKA, meanwhile, argued that the amount claimed by Modipalm was not yet due, as there were outstanding works at the site of the palm oil mill that it commissioned.
“Hence, for Modipalm to claim the whole amount, they must complete all outstanding works subject to verification by a consultant. As such, Modipalm’s application is premature and yet to meet the requirement under the law for filing such an application,” said TDM.
Furthermore, the plantation and heathcare firm said, the parties had agreed to refer such a dispute to the Kuala Lumpur Regional Centre for Arbitration (KLRCA) based on their contract dated June 16, 2014.
PT RKA will, therefore, issue a notice to arbitration to Modipalm, in accordance with the KLRCA rules of arbitration, to tell Modipalm that the right forum to settle their dispute was KLRCA.
To recap, PT RKA gave a letter of award worth about RM50.3mil to Modipalm in September 2013 for the construction of a 60-tonnes-per-hour continuous sterilisation palm oil mill in West Kalimantan, Indonesia. The environmentally-friendly mill, which includes a bio-composting plant, was targeted for completion by end of last year.
