PETALING JAYA: Zelan Bhd’s wholly owned subsidiary Zelan Construction Sdn Bhd has initiated arbitration proceedings against NRY Architects Sdn Bhd, with claims amounting to some RM300 million.
In a filing with Bursa Malaysia, Zelan said the arbitration is in respect of the disputes and differences arising between the two parties in relation to the proposed development of academic buildings and college accommodation.
The academic buildings and college accommodation is part of the Centre of Foundation Studies of the International Islamic University of Malaysia (IIUM) in Kuantan, Pahang.
Zelan Construction’s claims against NRY Architects is premised on breach of contract by NRY Architects under the Consultancy Services Agreement dated May 9, 2013 entered into between the two parties.
Zelan Construction is seeking a declaration that NRY Architects has breached the contract by failing to carry out its obligation under the contract and payment for the refund on value of cost savings for deviation items amounting to RM5.97 million resulting from the breaches committed by NRY Architects.
It is also seeking payment for IIUM claims for rental of temporary facilities, utilities bills and other costs from January 2016 until June 30, 2018 amounting to RM38.31 million as well as loss of income for Zelan Construction amounting to RM261.12 million.
