Image source: maju.com.my

Econpile Sdn Bhd, a subsidiary of Econpile Holdings Bhd, has on the 23rd of December been countersued by ASM Development (KL) Sdn Bhd (ASMDKL), a unit of Maju Holdings Sdn Bhd, in response to the suit filed earlier in March this year. The new suit is against Econpile is for almost RM346 million, for failing to carry out work at the Maju, Kuala Lumpur project.

Earlier in March this year, Econpile sued ASMDKL for RM80.1 million, after 80% of the works had allegedly been completed. ASMDKL was issued a Notice of Determination by Econpile, on the basis that the developer had been interfering/obstructing the issuance of Interim Certificates in respect of EMSB's Progress Claims amounting to RM80.1 million.

The action had come about as Econpile took legal action in demanding RM67 million as “progress payment”. ASMDKL had however questioned the demand, as Econpile had declared self-determination of employment, and ASMDKL hadn’t terminated or taken any action against Econpile.

Econpile had further added that ASMDKL had failed to issue the relevant Interim Certificates within the stipulated 30 days and to make payment within the period of Honouring Certificates.

The counterclaim by ASMDKL was filed on the 28th of November by law firm Edwin Lim & Suren at the Kuala Lumpur High Court.

The countersuit from ASMDKL lists 13 claims for damages and costs, and about RM33.8 million for rectification costs due to Econpile’s delay in completion of works, and the claim that the undertaken work was defective which resulted in the developer having to take over the works themselves.

ASMDKL states that they are carrying out rectification works on the 7 blocks of luxury apartment in Maju KL as well, which will result in a late delivery of 1,403 units under the sales and purchase agreement, is worth up to RM98 million in total claims from the buyers.

The claims are also inclusive of the operating costs incurred due to Econpile abandoning their work since 1st March.

ASMDKL also stated that they had to hire a new contractor after they issued a Certificate of Non-Completion to Econpile on the 7th April 2018. They have further demanded payment for 110 units estimated to be worth RM67 million from Platinum Rhythm Sdn Bhd, which is owned by directors and shareholders of Econpile, through a block purchase agreement on 25th August 2017.

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(30 December 2019)