KUALA LUMPUR: CIMB Group Holdings Bhd, the parent company of Touch 'N Go Sdn Bhd, is taking PLUS Malaysia Bhd to court a day after it filed for an arbitration to stop the highway concessionaire from launching its own toll collection system.
The originating summons was filed at the High Court of Kuala Lumpur (commercial division) on Dec 18.
CIMB, in a filing with Bursa Malaysia today, said the legal proceeding was initiated following disputes that have arisen between the CIMB and its wholly owned unit CIMB SI 1 Sdn Bhd on the one hand and PLUS on the other in connection with and/or under the joint venture agreement dated May 12, 1998.
The JVA resulted in the setting up of Touch 'N Go Sdn Bhd (TNG).
PLUS, in a response to CIMB's move on Dec 17 to initiate the arbitration process, said today that it is not backing down.
"PLUS firmly believes that the recent launch of PLUS RFID targeted pilot will promote choices to the rakyat as it offers options and convenience for customers," it said.
The PLUS RID system is an open payment platform, which also allows the use of Touch N' Go's e-wallet and prepaid payment, as well as debit and credit cards.
"PLUS believes that it is not a breach of any agreement,' it said.
Meanwhile, CIMB said today the legal action aims to restrain PLUS from commencing, carrying out, utilising, developing and/or operating the business and implementation of the PLUS radio frequency identification (RFID) system for the purpose of toll transactions on Malaysian highway systems.
It is also trying to block PLUS from carrying out any sales, marketing and/or promotional activities to secure and/or approach customers or potential customers from purchasing and/or utilising the PLUS RFID system.At the same time, CIMB wants to ensure that PLUS does not interfere in the sales, marketing and/or promotional activities conducted by TNG for the Touch 'N Go radio frequency identification (RFID) system and/or to cause any disruptions in these activities conducted by TNG.