KUALA LUMPUR (July 25): The High Court has dismissed the suit filed by Scomi Transit Projects Sdn Bhd (STP), a unit of Scomi Engineering Bhd, against Prasarana Malaysia Bhd over Prasarana’s termination of a contract between the two parties.

In a filing with Bursa Malaysia today, Scomi said the court however, granted an injunction preventing termination of the contract by Prasarana until tomorrow, when the court will hear arguments as to whether the injunction should be further extended, pending appeal.

The dispute between the two parties arose in relation to a notice of termination dated June 9 issued by Prasarana, which gave STP 14 days to renew a performance bond connected with the contract, failing which the contract, dated June 3, 2011, would be terminated.

Under the contract, STP was to deliver 12 sets of new four-car monorail trains, construct a new depot, install a new signalling system and upgrade the KL Monorail stations, including the electrical and mechanical system, for a total of RM494 million.

Prasarana, however, claimed that only six sets of new four-car trains had been delivered to date — five sets of which are currently in revenue service. Both parties are in dispute over the delay of the train delivery.

On June 21, Scomi said the suit was a step taken in an ongoing effort by STP to ensure that the project was completed and to prevent Prasarana from unfairly terminating the contract.

It claimed that it had as of that day, completed about 83% of the project works and would be able to complete the project within the time it was entitled to, under the contract.

Scomi’s share price closed unchanged at 21.5 sen today, for a market capitalisation of RM73.5 million.