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, the rail contractor, and its three guarantors must pay Kuwait Finance House (KFH) RM39.09 million. The court dismissed Emrail's RM59.1 million claim against the bank over a disputed performance bond for the LRT3 project. The disagreement hinged on whether KFH had agreed to issue a performance bond in a specific format prescribed by MRCB George Kent Sdn Bhd, the project's delivery partner.
The court found that the performance bond template used by Emrail had never been incorporated into the financing agreement with KFH. Emrail's claim for interim payments was also rejected due to insufficient proof of causation. The court ordered KFH to pay the outstanding debt of RM39,089,705.42 within one month, with interest at 5% per year from the judgment date until full settlement, and awarded KFH RM100,000 in costs.
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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
