The settlement will see Wiradani withdraw its petition, scheduled to be heard in the Kuala Lumpur High Court on Oct 17, without prejudice and with liberty to file afresh.

The petition, filed in June, was premised on the non-payment by SPNB Aspirasi of a sum found to be due and owing under a certified interim payment certificate following arbitration proceedings initiated by Wiradani.

The certificate was issued pursuant to a development agreement and a supplementary development agreement entered between SPNB Aspirasi and Wiradani.

Under the agreements, Wiradani was to purchase land and act as turnkey contractors for the construction of several housing projects in various parts of the country.

As part of the terms of settlement, SPNB Aspirasi withdrew two appeals filed in a bid to set aside the arbitration proceedings when they came up for hearing in the Court of Appeal yesterday.

The arbitration award was previously upheld by the High Court on Nov 29 last year.

In a statement to FMT following the Court of Appeal proceedings, Wiradani said the settlement will involve the transfer of project land valued at RM28 million to set off against the debt owed under the arbitration award.

According to The Edge, settlement will also see SPNB Aspirasi relinquish all its rights and interests under the development agreement and the supplementary development agreement.

The settlement was recorded in the Court of Appeal before Justices Lee Swee Seng, Che Ruzima Ghazali and Azizul Azmi Adnan.

SPNB Aspirasi was represented by the law firm of Rajesh, Chew & Ho, while Ahmad Deniel, Rueben & Co. acted for Wiradani.