KUALA LUMPUR (July 31): Zelan Bhd is set to receive 264.6 million dirhams (RM297.6 million) from Meena Holdings LLC after the International Court of Arbitration, International Chamber of Commerce (ICC) ruled that its wholly-owned subsidiary Zelan Holdings (M) Sdn Bhd's (ZHSB) termination of contract is valid.
ZHSB had on Aug 18, 2016 initiated arbitration proceedings against Meena over breaches and defaults of the latter under a contract for the development of the Meena Plaza project in Abu Dhabi, the United Arab Emirates.
In an exchange filing today, Zelan said ZHSB had on July 29 received the decision from the International Court of Arbitration, ICC declaring ZHSB's termination of contract is valid.
It also ruled that Meena's deduction of sums in respect of obsolete cladding and thermal insulation material, conveying materials and MEP material was wrongful.
The court added that Meena's reversal of an interim payment certificate (IPC) and several non-compliance reports (NCRs) were also invalid and wrongfully issued, and that ZHSB is due an extension of time to Oct 1, 2015, for basement rectification works with no prolongation cost.
Zelan said it is in the process of seeking advice from its solicitors on the enforcement of the arbitration award with the purpose of recovering the awarded sums.
The Arbitral Tribunal of the International Court of Arbitration, ICC has awarded Zelan a total sum of 256.14 million dirhams, which includes interest up to June 1.
Zelan will also receive pre-award interest from June 1 to July 25 amounting to 52,963 dirhams, parties' costs of 8.4 million dirhams, as well as ICC costs of arbitration totalling US$585,000.
At 4.09pm, Zelan shares were up one sen or 13.33% at 8.5 sen, with 8.23 million shares done, bringing a market capitalisation of RM71.82 million.