KUALA LUMPUR (Nov 18): Tenaga Nasional Bhd (TNB) has sued Iskandar Waterfront City Bhd (IWCity) for RM76.56 million over damage to its undersea cables.
In a bourse filing, IWCity announced that it and wholly-owned subsidiary Tebrau Bay Constructions Sdn Bhd (TBCSB) had been served a writ of summons dated Nov 3, 2020 by the utility company yesterday.
TNB is alleging that IWcity and TBCSB had encroached and trespassed on a part of TNB’s transmission main intake and the right-of way/easement of its undersea cable project in October 2013.
The utility company is also alleging that IWCity and TBCSB had caused damage to undersea cable 230 KV PLTG - WAV No 1 on Nov 5, 2014. It accused IWCity and its subsidiary of negligence and claimed they are liable for the damage.
As such, TNB is claiming for RM76.56 million in damages. It is also seeking court declarations that the defendants had trespassed the undersea cable location, an injunction to prevent them from entering the area, and another injunction to prevent the defendants from interfering with TNB's legal rights with regards to the cables.
At the same time, TNB is applying for general damages, economic loss damages, and inconvenience damages from IWCity and TBCSB — all of which are subject to an interest rate of 5% per annum.
It also asking for a pre-judgment interest of 8% per annum for the damage to the cables from Nov 5, 2014 to the date of judgement. This is in addition to costs and other reliefs indicated by the court.
“At this juncture, while awaiting advice from its legal counsel on the claim, the suit is expected not to have an operational impact to IWCity and TBCSB.
If the claim is allowed, the financial impact will be the damages claimed and any additional cost or interest granted, said the group.
IWCity said it is currently seeking professional legal advice and will appoint counsels to defend the claim.
"The case management date has been fixed by the Court on 9 December 2020 by way of e-Review. The company will announce further material development of the above matter in due course,” it said.
Shares in IWCity finished 1.92% or a sen higher at 53 sen, valuing it at RM443.82 million. TNB finished 1.96% or 22 sen higher at RM11.42 with a market capitalisation of RM65.15 billion.
Get the latest news @ www.EdgeProp.my