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Author: tanhakka   |   Latest post: Tue, 12 Mar 2019, 1:50 PM

 

Protasco Bhd pattern of turbulence. Sues sub-contractor, seeks refund of RM2.97m. The Sun Daily | 富达公司多灾多难,天天上法庭问题接二连三,再添一宗法律诉讼案。

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11 March 2019. Troubled construction company Protasco Bhd’s wholly owned subsidiary HCM Engineering Sdn Bhd has filed a legal suit at the Kuala Lumpur High Court against its mechanical and electrical works sub-contractor Kuasatek (M) Sdn Bhd for breach of contract.

HCM’s claim against Kuasatek is premised on breach of contract by Kuasatek pursuant to a letter of appointment for mechanical and electrical works packages dated March 15, 2016, a work package under a project previously awarded to HCM, which was the design and built contract for the proposed additional of a four-storey office building with basement car park to the existing facilities in Bukit Jalil for the Asian Football Confederation.
 
“The legal proceeding is to finally determine the liability of Kuasatek under the contract and for the refund of the adjudicated sum paid to Kuasatek pursuant to the adjudication decision dated July 4, 2018,“ Protasco said.
 
HCM’s claims against Kuasatek include a declaration that the contract dated May 13, 2016 between the plaintiff and the defendant is for the sum of RM9.5 million; the defendant has breached the contract dated May 13, 2016; the plaintiff is allowed to set off the sum of RM288,204.76 as the costs to rectify the defectives works and /or work done on behalf; the plaintiff is allowed to set off the sum of RM930,000 as liquidated ascertained damages; the plaintiff is allowed to withhold the sum of RM475,000 as the performance bond until the issuance of the Certificate of Making Good Defects by Asian Football Confederation.
 
In addition, the defendant shall pay the sum of RM12,889.25 to the plaintiff; refund the sum of RM2.97 million to the plaintiff being the excess payment paid by the plaintiff to the defendant for work done; refund the sum of RM106,571.60 to the plaintiff forthwith being the sum paid by the plaintiff to the defendant for legal costs, adjudication costs and expenses; general damages to be assessed by the Court; interest at the rate of 5% per annum on the amount above from the date of judgment until date of full payment; and costs.
 
HCM had previously appealed to the High Court after its originating summons to set aside the adjudication decision dated July 4, 2018 obtained by Kuasatek was dismissed with costs.
 
Protasco Bhd is facing series of problems since last 4 years, which saw December 2018 quarterly loss of RM44 million, suspension of PPAM projects by Putrajaya Corp (PjC) as per confirmed by The Edge newspaper, and loss of RM2.97milion claims from sub-contractor Kuasatek, followed by a counter lawsuit today on Kuasatek.
 
In the middle of cash strapped troubles, the company announced to spend RM48.6 million cash on a Related Party Transaction (RPT) Land Project purchase from its executive director Dato' Sri Chong Ket Pen on 1 March 2019, or just 2 days after the company announced RM44 million loss in 4th quarter 2018.
 
According to Bursa Malaysia announncement, the vendor for the Tampin Land in Negeri Sembilan to be acquired by Protasco Bhd is Penmaland Sdn Bhd, where Protasco Executive Director Chong Ket Pen held 85%, his wife Hoo Chit Neo held 15%, and 3 of his sons Chong Ther Nen, Chong Ther Vern and Chong Ther Shern held the directorship.

 

The Sun Daily Reviewed

 

Original Aerticle: https://www.thesundaily.my/business/protasco-sues-sub-contractor-for-breach-of-contract-IX671381

Protasco sues sub-contractor for breach of contract 

12 MAR 2019 / 09:18 H.
 

 

PETALING JAYA: Protasco Bhd’s wholly owned subsidiary HCM Engineering Sdn Bhd has filed a legal suit at the Kuala Lumpur High Court against its mechanical and electrical works sub-contractor Kuasatek (M) Sdn Bhd for breach of contract.

HCM’s claim against Kuasatek is premised on breach of contract by Kuasatek pursuant to a letter of appointment for mechanical and electrical works packages dated March 15, 2016, a work package under a project previously awarded to HCM, which was the design and built contract for the proposed additional of a four-storey office building with basement car park to the existing facilities in Bukit Jalil for the Asian Football Confederation.

“The legal proceeding is to finally determine the liability of Kuasatek under the contract and for the refund of the adjudicated sum paid to Kuasatek pursuant to the adjudication decision dated July 4, 2018,“ Protasco said.

HCM’s claims against Kuasatek include a declaration that the contract dated May 13, 2016 between the plaintiff and the defendant is for the sum of RM9.5 million; the defendant has breached the contract dated May 13, 2016; the plaintiff is allowed to set off the sum of RM288,204.76 as the costs to rectify the defectives works and /or work done on behalf; the plaintiff is allowed to set off the sum of RM930,000 as liquidated ascertained damages; the plaintiff is allowed to withhold the sum of RM475,000 as the performance bond until the issuance of the Certificate of Making Good Defects by Asian Football Confederation.

In addition, the defendant shall pay the sum of RM12,889.25 to the plaintiff; refund the sum of RM2.97 million to the plaintiff being the excess payment paid by the plaintiff to the defendant for work done; refund the sum of RM106,571.60 to the plaintiff forthwith being the sum paid by the plaintiff to the defendant for legal costs, adjudication costs and expenses; general damages to be assessed by the Court; interest at the rate of 5% per annum on the amount above from the date of judgment until date of full payment; and costs.

Protasco said the legal proceeding it has initiated has no significant immediate adverse impact on its current financial position.

HCM had previously appealed to the High Court after its originating summons to set aside the adjudication decision dated July 4, 2018 obtained by Kuasatek was dismissed with costs.

 

http://www.bursamalaysia.com/market/listed-companies/company-announcements/6091645

MATERIAL LITIGATION COMMENCEMENT OF LEGAL SUIT AGAINST KUASATEK (M) SDN BHD
 
PROTASCO BERHAD
 
Type Announcement
Subject MATERIAL LITIGATION
Description COMMENCEMENT OF LEGAL SUIT AGAINST KUASATEK (M) SDN BHD
Reference is made to our announcements dated 31 October 2018 and 22 November 2018. Unless otherwise stated, defined terms in this announcement shall carry the same meanings as defined in the previous announcements above.
 
 
 
Protasco Berhad (“Protasco”) wishes to announce that its wholly owned subsidiary, HCM Engineering Sdn Bhd (“HCM”) has on today filed a legal suit at the Kuala Lumpur High Court against Kuasatek (M) Sdn Bhd (“Kuasatek”) (“Legal Proceeding”).
 
 
 
HCM’s claim against Kuasatek is premised on breach of contract by Kuasatek pursuant to a Letter of Appointment for Mechanical and Electrical Works Packages (Contract No: HCM/P48-AFC/LA/C/16/V1(07) dated 15 March 2016, a work package under a project previously awarded to HCM known as “The Design And Built Contract For The Proposed Additional Of A 4 Storey Office Building With Basement Car Parking To The Existing Facilities On Lot No. 38627, Bukit Jalil, Mukim Petaling, Daerah Kuala Lumpur, Malaysia For Asian Football Confederation.” Kuasatek was the mechanical and electrical works sub-contractor for HCM.
 
 
 
The Legal Proceeding is to finally determine the liability of Kuasatek under the contract and for the refund of the Adjudicated Sum paid to Kuasatek pursuant to the Adjudication Decision dated 4.7.2018.
 
 
 
HCM’s claims against Kuasatek are as follows:
 
 
 
(a)        A declaration that the contract dated 13.5.2016 between the Plaintiff and the Defendant is for the sum of RM9,500,000.00;
 
 
 
(b)        A declaration that the Defendant has breached the contract dated 13.5.2016;
 
 
 
(c)        A declaration that the Plaintiff is allowed to set off the sum of RM288,204.76 as the costs to rectify the defectives works and /or work done on behalf;
 
 
 
(d)        A declaration that Plaintiff is allowed to set off the sum of RM930,000.00 as Liquidated Ascertained Damages;
 
 
 
(e)        A declaration that the Plaintiff is allowed to withhold the sum of RM475,000.00 as the performance bond until the issuance of the Certificate of Making Good Defects by Asian Football Confederation;
 
 
 
(f)        The Defendant shall pay the sum of RM12,889.25 to the Plaintiff forthwith;
 
 
 
(g)        The Defendant shall refund the sum of RM2,968,456.89 to the Plaintiff forthwith being the excess payment paid by the Plaintiff to the Defendant for work done;
 
 
 
(h)        The Defendant shall refund the sum of RM106,571.60 to the Plaintiff forthwith being the sum paid by the Plaintiff to the Defendant for legal costs, adjudication costs and expenses;
 
 
 
(i)         General damages to be assessed by this Honourable Court;
 
 
 
(j)         Interest at the rate of 5% p.a. on the amount in (f), (g), (h) and (i) above from the date of Judgment until date of full payment; and 
 
 
 
(k)        Costs.
 
 
 
Protasco wishes to state that the Legal Proceeding it has initiated has no significant immediate adverse impact on the current financial position of Protasco.
 
 
 
 
 
Announcement Info
Company Name PROTASCO BERHAD
Stock Name PRTASCO
Date Announced 11 Mar 2019
Category General Announcement for PLC
Reference Number GA1-11032019-00051
 

 

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