KUALA LUMPUR: Kerjaya Prospek Group Bhd has initiated legal action against Yong Tai Bhd and its CEO over an alleged unpaid contract sum of RM105.14 million in connection with a construction project in Melaka.
According to The Edge, Kerjaya Prospek, in a Bursa Malaysia filing, said its subsidiary, Kerjaya Prospek (M) Sdn Bhd, served a writ of summons and statement of claim to Yong Tai and its chief executive, Datuk Boo Kuang Loon.
The dispute surrounds the alleged failure of Apple 99 Development Sdn Bhd, a wholly-owned subsidiary of Yong Tai, to fulfil payment obligations under a contract for the construction of a mixed development project in Melaka, which includes the Courtyard by Marriott hotel and Apple Serviced Suites.
Kerjaya Prospek is suing Boo over his personal guarantee for the residual contract in dispute. Yong Tai, in a filing on Friday, said the company has filed a defence and counterclaim.
It claims that Kerjaya Prospek's subsidiary failed to complete construction work as agreed, resulting in delays.
These delays affected the Courtyard by Marriott and Apple Serviced Suites, which led to financial losses of RM76.62 million.
Yong Tai also said a supplementary agreement it signed in 2023 supersedes the original settlement agreement, including releasing Apple 99 from payment obligations to Kerjaya Prospek's subsidiary.
The company wants the court to declare Kerjaya Prospek's subsidiary's demand as invalid under the terms of the supplementary agreement. It is also seeking compensation.
On Aug 22, Kerjaya Prospek's subsidiary filed a writ of summons seeking the recovery of the alleged unpaid RM105.14 million from Apple 99.
Then, Yong Tai said the claims were without merit and cited the failure to adhere to contract terms.
Subsequently, Kerjaya Prospek's subsidiary issued a demand to Yong Tai and Boo for the money which was to be paid in 30 days, citing corporate and personal guarantees.