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- Ireka is required to pay UEM Land about RM3.04 million before taxes.
KUALA LUMPUR (Dec 30): UEM Sunrise Bhd (KL:UEMS) has won its counterclaims in a long-running arbitration against the main contractor of the Imperia mixed development in Puteri Harbour, Johor.
An arbitral tribunal dismissed claims brought by Ireka Corporation Bhd’s (KL:IREKA) unit Ireka Engineering & Construction Sdn Bhd and allowed counterclaims sought by UEM Sunrise, through its subsidiary UEM Land Bhd, the property developer said in an exchange filing.
Ireka is required to pay UEM Land about RM3.04 million before taxes.
The arbitration began in April 2019 to resolve disputes over the finalisation of a construction contract for the Imperia project. Ireka was appointed as the main contractor in 2012 and sought RM29.25 million from UEM Land, along with other outstanding payments.
UEM Land had rejected the demands and filed for counterclaims including liquidated damages of RM27.29 million and defect rectification costs of RM2.86 million, and fixed the project’s final contract sum at RM265.30 million.
After offsetting the amounts payable under the final account, the tribunal decided that Ireka is required to pay UEM Land about RM2.10 million. Ireka was also ordered to pay RM0.7 million in arbitration costs and RM0.24 million for the arbitrator’s fees and administrative expenses.
The tribunal also ruled that interest at 5% per year will accrue on any outstanding sums if payment is not made within 21 days from the date of the final award.
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