KUALA LUMPUR (Oct 4): OCR Group Bhd (KL:OCR) said the group is suing Kumpulan Jetson Bhd (KL:JETSON) over alleged breaches of a RM88.03 million contract to build four blocks of serviced apartments in Jalan Yap Kwan Seng, Kuala Lumpur.
In a filing with Bursa Malaysia on Friday, the property developer said the lawsuit was filed at the High Court on Thursday by its 50.01%-owned unit O&C Makok Isola Sdn Bhd (OCMI) against Kumpulan Jetson and and its wholly owned subsidiary Jetson Construction Sdn Bhd (JCSB).
OCR said OCMI decided to file the suit after terminating the arbitration launched against JCSB on Sept 10 as JCSB failed to pay its share of requisite deposits to the Malaysian Institute of Architects, the governing body for engineers that appoints arbitrators to settle disputes.
“The first defendant [JSCB] was in breach of the contract due to, inter-alia, its inability to proceed with and complete the works in accordance with the terms of the contract,” according to the statement of claim sighted by The Edge.
Kumpulan Jetson was named as the second defendant as it has provided JSCB with a corporate guarantee.
JCSB was awarded the contract in July 2018, and OCMI issued a notice of termination four years later in September 2022.
In March this year, OCMI initiated the arbitration against JCSB to claim RM30.88 million, or a sum to be assessed by the tribunal, for the additional costs relating to the appointment of a replacement contractor to complete the works.
Shares of OCR finished 22.22% or one sen lower at 3.5 sen on Friday, valuing the company at RM105.24 million. The counter has declined 41.67% year-to-date.
Kumpulan Jetson closed unchanged at 22 sen, with a market capitalisation of RM82.79 million. The stock has fallen 15.38% year-to-date.
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Source: EdgeProp.my
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