KUALA LUMPUR: Scomi Engineering Bhd has not been allowed from proceeding with a legal action against Prasarana Malaysia Bhd over their dispute involving the termination of a RM499 million contract.

  The action was initiated by Scomi Engineering's unit, Scomi Transit Projects Sdn Bhd, on June 3.

  The company sought to restrain Prasarana from appointing a new party to complete the remaining works under the contract pending the disposal of arbitration proceedings between the two parties.

  The contract involved the upgrading of stations and systems of the Kuala Lumpur Monorail and replacement of old trains with 12 new four-car trains, six of which had already been delivered.

  "The action, instituted pending disposal of the arbitration and including the interim injunction instituted pending disposal of enclosure 1, was not allowed by the High Court today, with costs of RM20,000," Scomi Engineering said in a filing with Bursa Malaysia today.

  Scomi Engineering is currently in the midst of a three-way merger with its parent Scomi Group Bhd and Scomi Energy Services Bhd.

  Scomi Group owns a 72.33 per cent stake in Scomi Engineering and 65.65 per cent of Scomi Energy.

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