Rich Capital, related parties facing legal suit by Batam project partner
Karya Indo Batam (KIB) is claiming damages for an alleged conspiracy. It is also seeking damages from Oxley Batam Pte Ltd for an alleged breach of the shareholder's agreement.
Rich Capital and other parties are being sued by Karya Indo Batam (KIB) for alleged conspiracy and project mismanagement, among other things.
KIB is involved in a property development project in Batam with an indirect subsidiary of Rich Capital, Oxley Batam Pte Ltd. The two parties had formed an equal joint-venture company, Oxley Karya Indo Batam (OKIB), to undertake the Oxley Batam Convention City Project.
The other parties being sued are Rich Capital's controlling shareholder Wang Zhenwen, representative for the project Aldrin Tai Kok Kit, Rich Capital's associate company Rich-Link Construction (RLC), and Oxley Batam Pte Ltd.
According to an exchange filing on Tuesday, KIB commenced legal proceedings against the parties and served a writ of summons on Rich Capital on Monday.
Against the parties, KIB is claiming damages for an alleged conspiracy. It is also seeking damages from Oxley Batam Pte Ltd for an alleged breach of the shareholder's agreement.
Trouble first surfaced last September when KIB served two legal letters to Rich Capital via an Indonesian law firm, demanding full control of the joint venture and compensation of S$20 million.
The letters alleged conspiracy and breaches of the interested-persons transaction mandate and Indonesian criminal laws. The allegations were made with regard to the appointment of RLC as the main contractor of the Batam project.
Rich Capital subsequently formally rejected and denied the allegations in August through its Indonesian lawyers, Hillman Sembiring Advocates.
In January this year, KIB issued another letter to Rich Capital through a Singapore law firm.
The letter demanded that the parties provide a written confirmation that they acknowledge the alleged acts of wrongdoing, provide on oath a full account of the particulars of all acts of wrongdoing, and agree to pay KIB for all loss and damage it had allegedly suffered as a result.
It also demanded the parties consent that all loss and damage allegedly suffered by KIB be agreed or determined by the High Court of Singapore.
Rich Capital had said it would seek legal advice to "rigorously" resist and defend the allegations made against the group in that letter, as well as any legal proceedings that may be started in Singapore.
Rich Capital and Oxley Batam Pte Ltd say they are both seeking legal advice on resisting the legal proceedings and considering potential counter and/or cross-claims.
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