Iconic Worldwide through its subsidiary Iconic Medicare Sdn. Bhd. was issued a Writ of Summons and Statement of Claim by Latex Form Sdn. Bhd. with regard to work done at the company’s glove plant.
The claims are for an outstanding sum of RM11,038,004.00, allegedly being the value of the work carried out on six Double Former Glove Dipping machines at Iconic’s factory. It is also claiming for damages in the sum of RM1,600,000.00 being the amount lost as a result of the said sum being forfeited by their suppliers due to Iconic terminating the Glove Machine installation contract.
Latex Form was appointed on 11 March 2021 to fabricate and install 6 units of the Glove Machines at a total cost of RM38,280,000.00 (i.e. RM6,380,000.00 for each unit). Iconic says the company had breached the terms of the installation, commissioning and handover of the Glove Machines in accordance with the dates stipulated in the Purchase Orders. Due to the delay, on 4 July 2022, IMED had agreed to grant an extension to continue and complete the installation of the 6 units of the Glove Machines and the Plaintiff paid the LAD of RM2,400,000.00 and accepted the extension of time granted to them to complete the installation of the 1st and 2nd Glove Machine by 30 July 2022. Having paid the sum of RM2,400,000 as the
agreed LAD, Iconic said the company is now attempting to declare the LAD payment as null and void and is seeking a refund of the said sum.
Furthermore, Iconic adds despite the extension of time granted, the company failed to complete the installation of the 1st and 2nd Glove Machines on or before 30 July 2022.
Iconic says the termination of the contract vide notice dated 27 April 2023 was brought about by the breach of contract committed by the Plaintiff themselves when they failed to complete the installations of the remaining 4 Glove Machines and therefore the Plaintiff is not entitled to the RM15,038,004 damages which they are seeking.
The group said it is seeking legal advice to defend the frivolous claim.
