Friday 29 Mar 2024
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KUALA LUMPUR (April 3): The Court of Appeal today allowed Penang International Airport 2010 and 2011's upgrading works main contractor Syarikat Pembinaan Anggerik Sdn Bhd (SPASB) to continue its legal action in relation to a RM43.99 million claim against Malaysia Airports Holdings Bhd (MAHB).

In a filing with Bursa Malaysia today, MAHB said SPASB's appeal was allowed on the ground, inter alia, that there is no arbitration agreement in the contract within the meaning of section 9 of the Arbitration Act 2005 and therefore in essence, SPASB is right in commencing a legal action in court.

MAHB said the Court of Appeal further awarded costs of RM20,000 for the application at the High Court and the appeal at the Court of Appeal.

On April 19 last year, MAHB received a writ of summons from SPASB, which claimed against the former for RM43.99 million and other claims on damages and interest in respect of losses and damages pertaining to development and upgrading works at Penang International Airport.

MAHB then filed an application of "Stay of Proceedings" at the High Court, which granted such application on Aug 23 last year with costs of RM10,000 paid by SPASB.

Five days later on Aug 28, 2017, SPASB filed an appeal to the Court of Appeal in respect of the High Court's decision in granting MAHB's stay application.

MAHB's share price gained 12 sen or 1.34% to trade at RM9.04 at the market break, giving it a market capitalisation of RM15.03 billion.

 

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