Emrail loses RM59mil claim, must pay Kuwait Finance House RM39mil
High Court says Kuwait Finance House was not contractually bound to issue a performance bond in the format demanded by the LRT3 project delivery partner.
The High Court has ruled that Emrail Sdn Bhd and three guarantors must pay Kuwait Finance House (KFH) RM39.09 million over a performance bond dispute related to the LRT3 project. Justice Quay Chew Soon dismissed Emrail's RM59.1 million claim but upheld KFH's counterclaim, ordering the payment within one month with interest. The disagreement centered on whether KFH agreed to issue a performance bond in a specific format.
The court found that the financing documents required the bond to be in a form acceptable to KFH, which retained the right to determine the bond's suitability. Emrail could not use its separate contract with the project delivery partner to impose obligations on KFH. The judge rejected Emrail's argument that KFH's negligence led to the bond issue issue.
Emrail and its guarantors, businessmen Zaki Azmi, Hari Narayanan Govindasamy, and his son Amrish, were found liable for the RM39.09 million.
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- Emrail loses RM59mil claim, must pay Kuwait Finance House RM39mil freemalaysiatoday.com
- Emrail loses RM59m LRT3 bond suit, ordered to pay Kuwait Finance House RM39m malaymail.com
