KUALA LUMPUR (Nov 12): Seremban Engineering Bhd (KL:SEB) said it has been served with a counterclaim for RM24.94 million in a lawsuit related to a manufacturing plant projectin Bandar Enstek, Negeri Sembilan.

In a bourse filing on Tuesday, SEB said the counterclaim was filed by CN Eleco Engineering Sdn Bhd in a follow-up to the original suit filed by MIE Industrial Sdn Bhd, a majority shareholder of SEB with a 69.7% stake, against CN Eleco.

MIE, in the main suit, is accusing CN Ekeco of breaching its contractual obligations with regards to the 'Big Blue Project' at Bandar Enstek awarded by Dutch Lady Milk Industries Bhd (KL:DLADY) in April 2022. MIE is claiming RM21.14 million in back charges from CN Eleco for the alleged breaches.

In the counterclaim, CN Eleco contended that there was no breach on its part and alleged that the back charges are unwarranted and an afterthought by MIE. CN Eleco is also alleging conspiracy by SEB and MIE to injure its business.

SEB said the High Court has set Nov 21 for case management.

"SEB’s position is that these allegations are unsubstantiated and lack documentary evidence, as there is no contractual obligation between SEB and CN Eleco," SEB said.

"The company is in the midst of seeking legal advice to resolve and/or defend itself in the legal suit," it added.

SEB’s share price fell 15.5 sen or 21.09% to finish at 58 sen on Tuesday, giving the company a market capitalisation of RM46.09 million.