Pestech has informed Bursa that it has been served with a Notice of Arbitration by Syarikat Pembenaan Yeoh Tiong Lay Sdn. Bhd. (a company belonging to construction giant YTL), under the Asian International Arbitration Centre.
This is in relation to the group as a guarantor, agreeing to guarantee the due performance of the Sub-Contracting Agreement entered between both parties for a fixed price, date certain, turnkey engineering, procurement, construction, and maintenance contract relating to the electrification systems relating to and for the Project known as the Design, Construction, Supply, Installation, Completion, Testing, Commissioning and maintenance of the Electrified Double Track from Gemas to Johor Bahru.
However, it said the sub-contract was unlawfully terminated and the disputes arising therefrom are being referred in a separate arbitration proceeding under the AIAC. In that regard, it said the entire arbitral panel has yet to be constituted as that is still in the process. Pestech has also raised substantial counterclaims against YTL. That arbitration follows on from the various High Court suits that have been filed in Court.
Pestech said it will vigorously dispute such reliefs and will raise a detailed response in the Response to Notice of Arbitration that will be served in due course.
