CEO Morning Brief

Careplus Moves to Strike Out Petrolife’s RM27 Mil Suit

Publish date: Fri, 23 Sep 2022, 08:39 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Sept 22): Careplus Group Bhd said its unit Rubbercare Protection Products Sdn Bhd (RPP) has filed an application to strike out Petrolife Aero Sdn Bhd’s writ of summons and statement of claim, citing multiplicity of proceedings.

In a bourse filing on Thursday (Sept 22), the glove maker said its unit filed the application at the High Court here to strike out Petrolife’s claim seeking RM27.08 million due to an alleged breach of an agreement relating to the supply of liquefied natural gas (LNG), reasoning that RPP filed a suit pertaining to the same matter at the Seremban High Court.

“Petrolife’s claim gave rise to a multiplicity of proceedings, as the fundamental basis and subject matter of the dispute in the Petrolife suit are the same in substance, character and effect, as well as being premised on the same or essentially the same facts as the RPP suit,” the group claimed.

Furthermore, Careplus asserted that Petrolife’s claim would prejudice and delay the fair trial of the suit in Seremban and that the claim was filed with improper and collateral motive to coerce, pressure and embarrass RPP twice on the same matter.

“Petrolife’s claim against RPP is frivolous, vexatious and is an abuse of the court process,” it added.

Other than seeking to have the claim be struck out and dismissed accordingly, Careplus said the application also seeks that the costs of the application be paid by Petrolife on an indemnity basis, as well as any further or other relief that the court deems fit and proper under the circumstances.

To recap, RPP was served a writ of summons and statement of claim on Aug 30 filed by Petrolife, seeking RM27.08 million in alleged losses, as well as general damages, exemplary damages, and costs.

Petrolife claimed it suffered the alleged losses as a result of RPP having breached its obligation and responsibility under an agreement for the supply of LNG the duo entered into. It also purported that the termination of the contract is unlawful.

RPP had appointed Petrolife to supply LNG for its new plant in Senawang, Negeri Sembilan from November 2021.

Meanwhile, prior to Petrolife’s filing of its claim, RPP filed a similar statement of claim against Petrolife at the Seremban High Court on June 10, relating to the same matter, where RPP sought RM1.5 million from Petrolife, among others.

RPP claimed that it terminated its agreement with Petrolife on March 15 this year, and demanded the return of an RM1.5 million security deposit. Due to Petrolife’s failure to refund the security deposit, RPP filed the statement of claim.

Shares in Careplus fell one sen at 23.5 sen on Thursday, giving the group a market capitalisation of RM132.07 million.

Source: TheEdge - 23 Sep 2022

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