LONDON (Alliance News) - Power generation group IPSA Group PLC Tuesday said that a Malaysian court has accepted its application that Malaysian courts should not have jurisdiction over the claim brought against it by Iris Ecopower Sdn Berhad.
In a statement on November 21 last year, IPSA said that Iris Ecopower Sdn Berhad, the Malaysian company with which it entered into a contract to sell two of its Siemens Westinghouse turbines, had issued a claim against it for the recovery of USD3.1 million paid by way of deposit to IPSA plus costs. Iris, claiming in Malaysian courts, is also seeking consequential losses amounting to approximately USD9.8 million.
IPSA said Iris failed to pay it the balance of the consideration due, despite being granted extensions. The deposit was forfeited in accordance with the terms of the contract signed by Iris and IPSA.
The company is seeking legal advice and believes the claims to be "entirely without merit".
IPSA said Tuesday that at a court hearing in Malaysia, the court accepted an application by IPSA that the Malaysian courts should not have jurisdiction over the claim brought by Iris Ecopower Sdn Berhad.
It said that Iris has thirty days in which to make an application for leave to appeal the matter in the Malaysian Court of Appeal.
IPSA said that the court also awarded the costs in its favour.
Shares in IPSA dropped 7.1% Tuesday afternoon, trading at 3.25 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright © 2014 Alliance News Limited. All Rights Reserved.
