KUALA LUMPUR: Ecoscience International Bhd's (EIB) wholly-owned unit, Ecoscience Manufacturing and Engineering Sdn Bhd (EMMSB), is taking legal action against RDS Marketing Malaysia Sdn Bhd in an effort to recoup RM2.38 million in outstanding payments.
In a filing with Bursa Malaysia, the palm oil refinery builder said that EMMSB has served a writ of summons and statement of claim to RDS Marketing in the High Court of Malaya in Shah Alam, Selangor.
The legal action stems from RDS Marketing's failure to fulfill its payment obligation of RM2.38 million for the completion of a project encompassing a one-storey factory and warehouse, a two-storey office building, and a substation in Bandar Sri Sendayan, Negeri Sembilan, for GoodGloves Industries Sdn Bhd.
The total contract sum for the project amounted to RM4.4 million, with the outstanding balance of RM2.38 million accruing since May 2022, according to EIB.
Despite the legal dispute, EIB has assured stakeholders that the lawsuit is not anticipated to have any significant financial or operational impact on the group for the financial year ending Dec 31, 2024.
EIB clarified that the full amount of the outstanding sum has already been accounted for as bad debts, and the project contract has been successfully completed.