AWC

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MATERIAL LITIGATION AWC BERHAD ("AWC" OR "THE COMPANY") - M & C ENGINEERING AND TRADING (S) PTE LTD FILED A WRIT OF SUMMONS AND STATEMENT OF CLAIM AGAINST POWSTAR TECHNOLOGY PTE LTD

AWC BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
AWC BERHAD ("AWC" OR "THE COMPANY") 

-	M & C ENGINEERING AND TRADING (S) PTE LTD FILED A WRIT OF SUMMONS AND STATEMENT OF CLAIM AGAINST POWSTAR TECHNOLOGY PTE LTD

The Board of Directors of AWC wishes to announce that M & C Engineering and Trading (S) Pte Ltd ("the Plaintiffs”), a subsidiary of the Company, has on 25 January 2021 filed a Writ of Summons and Statement of Claim against Powstar Technology Pte Ltd (“the Defendants”) in the Singapore High Court for the following particulars of claims.

 

 

1. DETAILS OF EVENTS LEADING TO THE FILING OF STATEMENT OF CLAIM

 

By way of a sub-contract for each project (i.e. collectively, “the Sub-Contracts”), the Plaintiffs engaged the Defendants as their sub-contractors to carry out works (collectively, “the Sub-Contract Works”) at the following projects (collectively, “the Projects”):

 

a) JTC Cleantech 3

b) JTC Cleantech 3 NMC

c) Sembawang Sports Hub

d) Chin Cheng Avenue Polyclinic

e) 20 ARC-Redundant Chiller Plant

f) 20 ARC

g) JTC Multi-Story Recycling Factory

h) Sembawang Sports Hub EPMS

i) JTC Cleantech 3 EPMS

 

During the performance of the Sub-Contract Works for the Projects by the Defendants, the Plaintiffs found out that the Defendants had been causing delays to the progress of the Sub-Contract Works, had not been carrying out the Sub-Contract Works at a pace to meet the Plaintiffs’ work schedule and had not been deploying sufficient manpower to carry out the works at the JTC CT-3 Project, the CT-3 NMC Project, the SSCH Project, the 20 ARC Chiller Plant Project, the 20 ARC BMS Project, and the JTC MSRF Project.

 

Despite the Plaintiffs’ repeated reminders, the Defendants continued to breach the Sub-Contracts for:

 

i) Failure to carry out the Sub-Contract Works in accordance with the Plaintiff’s work schedule and/or with due expedition;

ii) Failure and/or refusal to deploy sufficient manpower to carry out the works;

iii) Failure and/or refusal to comply with the instructions and/or directions of the Plaintiffs;

iv) Failure and/or refusal to carry out and bring to completion the Sub-Contract Works;

v) Failure and/or refusal to return to the Plaintiffs the Uninstalled Materials; and

vi) Wrongful conversion of the Uninstalled Materials.

 

The Defendants have repudiated the Sub-Contracts and the Plaintiffs, as they were entitled to, accepted the Defendants’ repudiation and terminated the Sub-Contracts by way of the Notice of Termination.

 

 

2. THE PARTICULARS OF CLAIMS UNDER THE STATEMENT OF CLAIM

 

The claims pursuant to the Statement of Claim are as follows:

 

i) Loss and damage due to the abovementioned events to be assessed;

ii) A declaration that the Plaintiffs be fully indemnified by the Defendants for any loss and damage suffered and/or any and all such claims that may be made against the Plaintiffs by third parties in any respect as a result of the Defendants’ repudiation of the Sub-Contracts and/or breach of the Sub-Contracts and/or conversion of the Uninstalled Materials;

iii) An indemnity for prayer (ii);

iv) Interest;

v) Costs; and

vi) Such other relief as the Honourable Court deems fit.

 

 

3. FINANCIAL EFFECTS

 

The Board is unable to quantify presently, the financial and operation impact on the Company and the Group arising from the Statement of Claim.

 

 

4. STEPS TAKEN AND PROPOSED TO BE TAKEN IN RESPECT OF THE WRIT OF SUMMON

 

The Company has sought the necessary legal opinion from Chong, Chia & Lim LLC Singapore who is acting for the Plaintiffs in this legal suit.

 

 

Further announcements will be made as and when there are material developments on the above matter.

 

This announcement is dated 25 January 2021.






Announcement Info

Company Name AWC BERHAD
Stock Name AWC
Date Announced 25 Jan 2021
Category General Announcement for PLC
Reference Number GA1-25012021-00119