Pyrrhic victory for construction firm awarded RM2mil

Pyrrhic victory for construction firm awarded RM2mil

Alamrio Builders Sdn Bhd says it has only received RM250,000 and further court action may be costly.

The Kuala Lumpur Arbitration Centre had ruled in favour of the construction and engineering company in 2018. (File pic)
PETALING JAYA:
It looks like a paper victory for a construction and engineering company after it obtained a garnishing order from the Shah Alam High Court in early April against its debtors for RM2 million.

Alamrio Builders Sdn Bhd managing director M Murugu Subramaniam was elated when the court ordered a bank to release to them whatever amount available in the account of Sime Darby Energy Solutions Sdn Bhd.

However, he said they were only able to secure RM250,000 from the bank two weeks ago.

“This appears to be a pyrrhic victory after the hard-fought court battle,” the engineer told FMT.

M Murugu Subramaniam.

He said he may now have to instruct his lawyer to initiate other legal options to obtain the balance from Sime Darby Energy Solutions, but was still mulling over it.

“This process is going to be time-consuming and we will incur additional legal costs,” said Murugu, who was represented by Sunil Akhtar Singh.

Alamrio’s predicament began when it secured two contracts worth about RM8 million in 2014 and 2015 from Sime Darby Energy Solutions, formerly known as Sime Darby Offshore Engineering Sdn Bhd.

“We completed the first contract but abandoned the second after partially completing the work due to non-payment,” Murugu said.

The case went for adjudication at the Kuala Lumpur Arbitration Centre in 2018, which ruled in Alamrio’s favour.

“Sime Darby was to pay us RM1.8 million plus 5% interest,” he said.

However, he said payment was not forthcoming despite a letter of demand.

Alamrio filed an action in the High Court in 2019 to enforce the order. It later applied for a garnishing order and managed to freeze Sime Darby Energy Solutions’ account in the bank last year.

“We obtained the (High Court) judgment early this month to release whatever money in the bank but it has turned out to be a disappointment,” he said.

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