KUALA LUMPUR (July 24): The highest civil appeal court in Dubai has ruled in favour of WCT Holdings Bhd in a civil suit brought against it by Dubai-based Meydan Group LLC.

Meydan had filed the suit against WCT Bhd (Dubai Branch), as well as Arabtec Construction LLC, for a sum of 3.5 billion UAE dirham (RM3.89 billion).

WCT said the Dubai Court of Cassation (COC) has dismissed the appeal filed by Meydan in respect of the earlier Court of First Instance and Court of Appeal’s rejections of the civil suit.

Following the decision by COC, the long standing suit has now concluded, WCT said in a filing with Bursa Malaysia today.

WCT added however, that efforts to ratify and thereafter enforce an arbitral award, remains ongoing.

WCT (Dubai) had initiated the arbitration proceedings against Meydan in 2009, with regards to the cancellation of the Nad Al Sheba race course project in Dubai.

In July 2015, WCT (Dubai) received an award of 1.15 billion dirham (RM1.2 billlion), after the tribunal passed judgment in favour of the company.

The award comprised claims for work done, repayment of performance bond, loss of profit, damages and interests; arbitration costs; and legal costs.

The arbitration proceeding was initiated by WCT (Dubai) over the cancellation of a RM4.6 billion contract to build the race course. The project was awarded to a 50:50 joint venture between WCT (Dubai) and Arabtec Construction.

Meydan had cancelled the contract on the basis of alleged breach in the form of non-adherence to the agreed construction schedule. Meydan had also called on the performance and advance payment bonds.

The tribunal found Meydan’s cancellation and purported termination of the contract to be unlawful and of no effect. It also found that Meydan was not entitled to call on the joint-venture’s performance bond.

Following that, Mayden counter claimed against the joint venture with the civil suit, claiming that the tribunal brought forward by the joint venture against it, had expired due to “effluxion of time”.

WCT Holdings’ share price was up by 3.66% or 4 sen to 99 sen today, with about 25.9 million shares traded, giving it a market capitalisation of RM1.37 billion.