Ireka slapped with RM98m suit by JV partner for residential project

CONSTRUCTION engineering company Ireka Corp Bhd has been slapped with a RM97.91 million suit in relation to a proposed residential property in the heart of Kuala Lumpur.

In an exchange filing today, Ireka said the company has received a writ of summons and statements of claim filed on behalf of ASPL M9 Ltd.

The summons arose from a joint venture agreement (JVA) dated Dec 31, 2009, entered by ASPL M9 and Ireka and Urban DNA Sdn Bhd with the primary objective of overseeing the development of the RuMa Project. Urban DNA was to be the developer of the project, with a shareholding ratio of 70% to ASPL M9 and Ireka’s holding of 30%.

It was also alleged under the writ that the ASPL M9 and Ireka had on the same date entered into an unwritten JVA on equivalent terms to the JVA.

Ireka has appointed Messrs Azmi & Associates to act on its behalf to defend the case.

Ireka’s stock ended the day’s trade at 50 sen, giving it a market capitalisation of RM114 million. — TMR / pic source: