KUALA LUMPUR (Jan 14): WCT Holdings Bhd said yesterday a judicial committee has upheld the Dubai Court of Appeal's decision that recognises a final award of RM1.2 billion in favour of the company in its dispute with Meydan Group LLC over the Nad Al Sheba Dubai Racecourse project.
The notification of the judicial committee's decision, which dismissed Meydan's challenge of the court's decision and its application to annul the final award, was received on Jan 12, said WCT in a stock exchange filing yesterday.
As such, WCT said it will continue to pursue its legal rights in respect of the final award — which was issued by the Arbitral Tribunal in 2015 when it initiated arbitration proceedings against Meydan in 2009 over the cancellation of the RM4.6 billion race course project in Dubai — including the enforcement of the same.
The final award comprised WCT's claims for work done, repayment of performance bond, loss of profit, damages and interests; arbitration costs and legal costs.
The project was awarded to a 50:50 joint venture (JV) between WCT (Dubai) and Arabtec Construction. But Meydan cancelled it on the basis of alleged breach in the form of non-adherence to agreed construction schedule, and called on the performance and advance payment bonds.
The tribunal, however, found Meydan’s cancellation and purported termination of the contract to be unlawful, and so was of no effect. It also found that Meydan was not entitled to call on the JV's performance bond.
Following that, Mayden counter claimed 3.5 billion UAE dirham (RM3.89 billion) from the JV in a civil suit, saying the claim brought forward by the JV against it had expired due to the “effluxion of time”. In July 2018, the highest civil appeal court in Dubai ruled in favour of WCT in the suit.
WCT’s share price closed one sen or 2% higher at 51 sen yesterday, with 3.71 million shares traded, giving it a market capitalisation of RM715.64 million. The stock has fallen 38% in the past one year, from when it was trading at 82 sen.
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