You are here
MDIS Malaysia commences arbitration proceedings against TEE International
TEE International said in a bourse filing on Saturday that MDIS (Malaysia) Sdn Bhd has commenced two sets of arbitration proceedings against its wholly-owned Malaysian subsidiary TEE E&C Malaysia Sdn Bhd and the company in Singapore on March 6, 2020.
The arbitration proceedings are in respect of disputes between MDIS (Malaysia) and TEE Malaysia from a construction contract dated June 30, 2014, in which Tee International is the guarantor under the contract.
On Sept 26, 2019, prior to the arbitration proceedings filed by MDIS (Malaysia) against TEE Malaysia and the company, TEE Malaysia had filed an adjudication application in Malaysia against MDIS (Malaysia) for outstanding payments. The adjudication determination was issued on March 16, 2020 to both parties.
Following the issuance of the adjudication determination, TEE Malaysia had proposed a settlement with MDIS (Malaysia) based on the conditions set out in the adjudication determination. However, it had rejected TEE Malaysia's proposed settlement and initiated the arbitration proceedings.
TEE International has filed an application to stay the Singapore arbitration pending the resolution of the Malaysia arbitration, supported by the company's undertaking be bound by the outcome of the Malaysia arbitration.
The group said that it intends to "vigorously pursue" its defence, and that it will continue to work closely with its legal counsel on the arbitration proceedings.
It will provide updates at the appropriate juncture if and when there are material developments on this matter, it added.