KUALA LUMPUR (Aug 19): Civil engineering and turnkey contractor Zelan Bhd’s wholly-owned unit Zelan Holdings (M) Sdn Bhd (ZHSB) is seeking AED452.75 million (RM495.57 million) in claims from Meena Holdings LLC for breach and defaults of contract for the Meena Plaza mixed use development project in Abu Dhabi, the United Arab Emirates.

Zelan said it has received a letter from the International Court of Arbitration, International Chamber of Commerce, which accepted ZHSB’s request for arbitration against Meena.

“Accordingly, ZHSB is claiming from Meena AED452.75 million as the loss and damage and payments it is entitled to recover from it, by consequence of ZHSB’s termination of the contract due to the defaults of Meena Holdings,” Zelan said.

In its claim, Zelan alleged that Meena Holdings failed to pay certified value for rectification of basement defects works and rejected ZHSB’s application for interim extension of time.

Meena Holdings is also alleged to have wrongfully deducted certified value of aluminium cladding panel and thermal insulation rockwool, issued non-compliance reports, deducted/reversed certified value for conveying equipment, and deducted/reversed of certified value for mechanical, electrical and plumbing works.

Zelan is also claiming from Meena, certified amounts under certificates of interim payments, its failure to pay the termination claims provided under the contract, and wrongfully liquidating bank guarantees/performance bonds provided by ZHSB.

To recap, Zelan and Meena had signed an agreement to build Meena Plaza on April 1, 2008, but due to several construction interruptions and unpaid work, Zelan terminated the contract on Sept 17, 2015.

Zelan shares fell one sen or 5.13% to close at 18.5 sen today, for a market capitalisation of RM156.3 million.