A sneak peek at Scomi's MRT design at its factory.
KUALA LUMPUR: Scomi Engineering Bhd’s unit Scomi Transit Projects Sdn Bhd (STP) has failed in its legal action to stop Prasarana Malaysia Bhd from hiring another party to finish the Kuala Lumpur monorail fleet expansion project while arbitration is still ongoing.
STP had filed the action in the Kuala Lumpur High Court on July 7 after the monorail operator decided to nullify the third supplemental contract (TSC) signed on March 3 between them.
In a filing with Bursa Malaysia on Tuesday, Scomi Engineering said: “The action, instituted pending disposal of the arbitration (Enclosure 1) and including the interim injunction instituted pending disposal of Enclosure 1, were not allowed by the High Court today, with costs of RM20,000.”
Before STP sought an interim relief in court on July 7, both parties had agreed to refer their dispute on the TSC to arbitration.
The interim relief sought included, among others, an injunction to restrain Prasarana from appointing a third party contractor to complete the remaining works under the TSC pending the disposal of arbitration between them.
Under the RM494mil principal contract signed between STP and Prasarana in June 2011, STP is tasked to upgrade the Kuala Lumpur monorail stations and the electrical and mechanical system, build a new depot, and deliver 12 sets of new four-car trains.
Things went sour between them early last year after Prasarana moved to terminate the contract, saying that STP had failed to deliver trains on time and that it did not submit a plan to remedy the delay.
According to Scomi, as of March 3 this year when the third supplemental contract was inked, it had completed about 83% of the project works and had delivered six trains.
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