KUALA LUMPUR (Oct 23): Pestech International Bhd said it is disputing the reliefs sought by Syarikat Pembinaan Yeoh Teong Lai (SPYTL) through a notice of arbitration issued last week.

In a filing with Bursa Malaysia on Monday, the group said it will give a detailed response in a statement that will be served in due course.

Among the reliefs sought by SPYTL is a declaration that Pestech has breached or defaulted under the parent company guarantee.

Pestech guaranteed the due performance of the subcontracting agreement in December 2018 entered between SPYTL and Pestech Technology Sdn Bhd (PTech), a subsidiary of Pestech, for the maintenance of the electrified double track project from Gemas to Johor Bahru.

The subcontract was terminated by SPYTL on May 10, and the disputes arising from the termination have been referred to in a separate arbitration proceeding under the Asian International Arbitration Centre.

In its filing, Pestech said SPYTL is also seeking a declaration that Pestech is responsible for any liability arising from PTech's alleged breach of the subcontract.

In September, the High Court dismissed an Erinford injunction application filed by Pestech's unit Pestech Sdn Bhd (PSB) against SPYTL in another setback in its legal tussle with the main contractor of the electrified double-track rail project.

The Erinford injunction sought to preserve the status quo, pending the conclusion of an appeal which PSB lodged on July 26.

Shares in Pestech ended one sen or 2.70% lower at 36 sen on Monday, giving the group a market capitalisation of RM357.20 million.

Read also:
Pestech receives notice of arbitration from SPYTL in Gemas-JB double track dispute
Pestech injunction dismissed by High Court in another setback in Gemas-JB double track dispute