Thursday, June 2, 2011

MTD Construction wins suit RM38.58m against AXA Affin

KUALA LUMPUR: MTD CONSTRUCTION [] Sdn Bhd (MTDC) has won its RM38.58 million suit against AXA Affin Assurance Bhd involving a claim on a contractors' All Risks Policy against the latter.

In a filing to Bursa Securities on Thursday, June 2, MT ACPI Engineering Bhd said the case was ruled in favour of MTDC on May 27, with the judge holding AXA Affin liable for the damages to be assessed by the Court Registrar.

MTDC is a wholly-owned subsidiary of MTD Equity which is in turn a unit of MTD CAPITAL BHD [].

MTDC had on March 23, 2005 served a Writ of Summons on AXA Affin.

The suit involved a claim on a policy underwritten by AXA and procured by MTDC in respect of a Project known as "Construction and Completion of Jalan Simpang Pulai-Lojing-Gua Musang-Kuala Berang, Pakej 2 (From Pos Selim, Perak Darul Ridzuan to Ladang Blue Valley, Kg Raja Cameron Highlands, Pahang Darul Makmur)".

The coverage period of the policy was from April 11, 1996 to April 10, 1999, which was extended to Jan 31, 2004 plus 24 months' maintenance plus 3 months and 14 days thereafter for making good defects, imperfections, shrinkages or any other faults or indemnify MTDC for any losses or damages in respect of the Project.

MTDC had then claimed for, among others, RM38.58 million as at August 2003 being costs for remedial works in respect of slope failures/landslips at the Project site, alternatively damages to be assessed and costs.

MTD ACPI said AXA Affin had 30 days from May 27, 2011 to file an appeal to the Court of Appeal.

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