KUALA LUMPUR (Dec 23): KL-Kuala Selangor Expressway Bhd (Latar), previously known as Lebuhraya Assamjawa Taman Rimba Bhd, has initiated legal action to enforce an arbitration award totalling RM46.13 million against highway concessionaire Prolintas Expressway Sdn Bhd, a subsidiary of Prolintas Infra Business Trust (KL:PLINTAS).
Case management for the lawsuit filed on Nov 22 was held before newly confirmed High Court judge Azlan Sulaiman on Monday.
Latar is represented by the legal firm of Gan Partnership, while Prolintas has appointed Abu Talib and Shahrom to appear for the company.
In the suit sighted by The Edge, Latar said the decision in the arbitration case was made on Nov 7 by arbitrator Mohandass Kanagasabai. Prolintas was required to pay RM25.45 million, along with interest from May 8, 2023 until full settlement. In addition, the highway concessionaire has to pay pre-award interest of RM19.78 million, and additional interest of RM918,994.
The arbitration pertains to a dispute concerning a cost-sharing agreement, involving a plan to link the Guthrie Corridor Expressway with Latar via the Kuang System Interchange and the North South Expressway (NSE) to enable vehicles on the two expressways to move freely into NSE.
In an affidavit in support of the suit, Latar’s general manager of its legal division, Imee Nurshaninaz Mohd Bashah, said Prolintas had yet to pay up the arbitration award granted by the arbitrator.
Hence, Imee says Latar seeks permission from the court to enforce the arbitration decision to be a binding and enforceable judgment by the court, as Latar’s solicitors had issued a letter of demand on Nov 14, this year, to demand the sum of RM46.13 million.
On Nov 15, Prolintas issued a statement recognising the sum and added that it will not face any financial losses following the arbitration.
The dispute involving the cost-sharing agreement was over GCE Co — the toll concessionaire of the Guthrie Corridor Expressway — claiming RM80.1 million from Latar, and Latar in turn claiming RM74.9 million from GCE Co.
The arbitrator had allowed both the claims. As a result, after both awarded amounts were set off, GCE Co was required to pay the RM46.13 million to Latar.