Ireka unit faces claim over decade-old Mont’Kiara apartment project

• The property developer said its wholly-owned unit United Time Development Sdn Bhd is being sued by Kejuruteraan Berpadu Maju Sdn Bhd. Kejuruteraan Berpadu was previously a supplier to Ireka Engineering & Construction Sdn Bhd (IECSB), another wholly-owned subsidiary of Ireka that has since been placed into creditors’ voluntary winding up.

KUALA LUMPUR (Sept 4): Ireka Corp Bhd (KL:IREKA) on Thursday said its subsidiary has been hit with a RM1.03 million lawsuit tied to a more than decade-old settlement arrangement involving the KaMi Mont Kiara apartment project in Kuala Lumpur.

The property developer said its wholly-owned unit United Time Development Sdn Bhd is being sued by Kejuruteraan Berpadu Maju Sdn Bhd. Kejuruteraan Berpadu was previously a supplier to Ireka Engineering & Construction Sdn Bhd (IECSB), another wholly-owned subsidiary of Ireka that has since been placed into creditors’ voluntary winding up.

“In 2012, the plaintiff supplied goods to IECSB and alleges that a sum of RM1.03 million remains outstanding,” Ireka said in a bourse filing.

To resolve the matter, IECSB and Kejuruteraan Berpadu entered into a contra arrangement in 2021, under which Kejuruteraan Berpadu agreed to purchase a unit at KaMi Mont Kiara for RM1.32 million. Of this, RM1.03 million was to be offset against IECSB’s debt, with the balance RM282,648 to be settled by Kejuruteraan Berpadu.

Following IECSB’s liquidation in May 2023, United Time asked Kejuruteraan Berpadu to directly settle the progressive billings due to IECSB’s inability to pay.

Ireka alleged that Kejuruteraan Berpadu failed to make the payments, prompting United Time to terminate the sale and purchase agreement. Kejuruteraan Berpadu is now seeking either full payment of the RM1.03 million or alternatively a sum of RM920,626 which it claims was received by United Time from IECSB.

United Time is in the process of appointing legal firm to defend the claim, Ireka said.

Shares in Ireka closed down 1.5 sen or 12.5% to 10.5 sen on Thursday, valuing the group at RM23.92 million.

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