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Gamuda Berhad (29579-T) • Annual Report 2012
40. Material litigations (cont’d.)
(i)
The Arbitral Tribunal heard the parties on the preliminary issues on 16 February 2011. The Arbitral Tribunal has
in its letter dated 7 March 2011 concluded that it does not have jurisdiction to entertain the preliminary issues
raised by W&F. Consequently, the Joint Venture does not need to pay W&F the amount of RM100,540,372 prior
to the merits hearing.
The first tranche of the merits hearing was held from 18 July 2011 till 29 July 2011, and the second tranche
was held from 7 December 2011 to 8 December 2011. The parties exchanged their closing submissions on
31 october 2011 and their reply closing submissions on 8 February 2012. The next stage in the arbitration
proceedings will be the rendering of the award by the Tribunal.
on 13 November 2008, W&F had served a Writ of Summons and a Statement of Claim dated 31 october 2008
(“the Court Action”) against the Joint Venture claiming for amongst others, a declaration that the Joint Venture
had breached the Sub-Contract by failing to make payment of RM102,367,000 awarded by the DAB to W&F.
on 1 June 2009, the Joint Venture was granted an order of stay of proceedings of the Court Action by the Senior
Assistant Registrar of the Court. on the same day, W&F filed an appeal to the high Court Judge against the said
stay order.
on 30 october 2009, the Court dismissed W&F’s appeal against the Court’s earlier decision to stay the Court
Action and fixed the Court Action for mention on 6 September 2010. Few mention dates were fixed subsequent
to the mention on 6 September 2010 and the last of which was on 18 July 2012 where, the Court directed that
in view of the existing order staying the court proceedings and the fact that the arbitral award is still pending,
there will be no further mention date to be fixed in respect of the Court Action.
In the arbitration proceedings, the potential gain to the Joint Venture in succeeding in its claims could be up
to RM80,405,000 and the potential loss from losing to W&F’s claim for wrongful termination could be up to
RM120,422,000.
In the Court Action, the potential loss could range up to RM102,367,000.
(ii)
Bahrain Asphalt Establishment B.S.C (Closed) (“BAE”) had on 4 March 2010 served a Request For Arbitration
against Gamuda Berhad (“Company”) (as the 1st Respondent), WCT Berhad (as the 2nd Respondent) and
Gamuda-WCT Joint Venture, qatar (“the JV”) (as the 3rd Respondent), to refer certain alleged disputes to
arbitration in qatar. The Company’s and WCT Berhad’s interests in the JV are in the proportions of 51% and
49% respectively.
BAE was appointed as the sub-contractor for the works known as the granular sub-base and flexible pavement
works (“Sub-contract Works”) for the JV’s project known as “Dukhan highway From Shahaniya to Zekreet”
which involves the construction of a 43 km new highway from Shahaniya to Zekreet in qatar.
The Arbitral Tribunal has been constituted on 19 July 2010.
hearing was held from 24 January 2012 to 7 February 2012.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012