Yong Tai Files Significant Counterclaim Amid Costly Legal Battle

Yong Tai Bhd (YTB), through its wholly-owned subsidiary Apple 99 Development Sdn Bhd (ADSB), has filed a RM76.6 million counterclaim against Kerjaya Prospek (M) Sdn Bhd (KPSB), a subsidiary of Kerjaya Prospek Group Bhd. The counterclaim addresses alleged delays, incomplete works, and contractual breaches tied to the development of the Apple Serviced Suites and the Courtyard by Marriott Melaka. ADSB is seeking compensation for damages that include reparation works and utility bill expenses.

Yong Tai Defends Breach Claims

The counterclaim responds to a Writ of Summons and Statement of Claim served by KPSB on August 23, 2024, where KPSB sought legal action against YTB and its CEO, Datuk Boo Kuang Loon, for an unpaid contract sum of RM105.14 million related to a Melaka mixed-development project. YTB contends that KPSB breached the PAM contract and the supplementary agreement dated April 12, 2023, thereby invalidating the claim for specific performance under the Sale Agreement (SA).

YTB’s defense highlights that any obligations under the SA can be settled through monetary relief, as the agreements have been varied or superseded by new tripartite agreements. The initial dispute revolves around KPSB’s claims that ADSB failed to fulfil payment obligations for the project, which includes the Courtyard by Marriott Melaka and Apple Serviced Suites. The legal battle underscores the complexities of construction contracts and the associated financial disputes.

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