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25 March 2023. Saturday
KUALA LUMPUR (March 24): Rubber glove maker Careplus Group Bhd has succeeded in striking out Petrolife Aero Sdn Bhd’s RM27.08 million suit against it over an alleged breach of a liquefied natural gas (LNG) supply agreement.
In a bourse filing on Friday (March 24), Careplus said the High Court had allowed its wholly owned Rubbercare Protection Products Sdn Bhd’s (RPP) application to strike out Petrolife’s suit, with RM5,000 costs to be paid to RPP.
In filing to strike out the application, RPP cited multiplicity of proceedings, given that it had already filed a similar suit at the Seremban High Court on June 10, 2022, seeking RM1.5 million from Petrolife. RPP argued that the fundamental basis of the dispute in the Petrolife suit are the same as its own suit in substance, character and effect, as well as being premised on the same facts.
RPP filed the suit after Petrolife failed to refund a RM1.5 million security deposit, following the termination of the agreement with Petrolife in March last year.
Petrolife, in response, filed a lawsuit in September against RPP at the Kuala Lumpur High Court here, claiming it suffered RM27.08 million in alleged losses as a result of RPP having breached its obligation and responsibility under the agreement for the supply of LNG. It also alleged that the termination of the contract was unlawful.
Under the agreement, RPP had appointed Petrolife to supply LNG for its new plant in Senawang, Negeri Sembilan from November 2021.
Shares in Careplus closed 1.5 sen or 4.48% lower at 32 sen, giving the group a market capitalisation of RM180.41 million.
Read also:Careplus moves to strike out Petrolife’s RM27 mil suit
