Axbena withdraws RM28 mil suit against Bintai Kinden’s unit after settlement

• In a bourse filing on Thursday, the mechanical and electrical engineering firm said Axbena filed a notice of discontinuance in respect of the suit with no legal cost, as well as without liberty to file afresh.

KUALA LUMPUR (Sept 14): Axbena Sdn Bhd has decided to drop the RM27.7 million lawsuit against Johnson Medical International Sdn Bhd (JMI), an indirect subsidiary of Bintai Kinden Corp Bhd, after the parties involved reached an amicable settlement resulting in the resolution of the dispute.

In a bourse filing on Thursday, the mechanical and electrical engineering firm said Axbena filed a notice of discontinuance in respect of the suit with no legal cost, as well as without liberty to file afresh.

“Concurrently, JMI has given notice to withdraw the application process for a previous case registered with Construction Industry Payment & Adjudication Act 2012 to claim for non-payment of progress claims, retention sum, maintenance charge and interest incurred for a total amount of RM1.73 million against Axbena as part of the amicable settlement,” the company added.

Further details of the settlement were not disclosed in Bintai Kinden’s bourse filing. 

JMI was slapped with the suit back in May this year, whereby Axbena claimed for, among others, RM27.7 million in liquidated damages over failing to complete a RM10.92 million subcontract by the completion date.

The subcontract was for the supply of a medical gas system for a teaching hospital at the Universiti Teknologi Mara (UiTM) campus in Puncak Alam, Selangor, and involvd a duration of July 30, 2018, to August 2, 2019.

However, the job was only completed on Feb 1, 2021 — a delay of 513 days.

Previously, Bintai Kinden said JMI's delayed completion of the sub-contract was due to delays caused by Axbena as the main contractor for not completing the infrastructure and building works of the teaching hospital on time.

Shares in Bintai Kinden closed half a sen or 6.25% lower at 7.5 sen, giving the company a market capitalisation of RM70.38 million.

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