High Court orders Perwaja to pay RM146.139 million to Petronas

The High Court here today ordered Perwaja Steel Sdn Bhd to pay a sum of RM146.139 million to Petroliam Nasional Berhad (Petronas) over a default in payment for the supply of dry gas in Kemaman, Terengganu.

High Court judge P. Nallini, who allowed Petronas' application for summary judgment in chambers, also ordered Perwaja to pay post judgment interest of four per cent per annum until date of settlement, and costs of RM20,000.

Nallini also dismissed Perwaja's counter claim on the ground that the provisions of the Competition Act 2010 were not applicable in this case.

In her 47-page judgment, Nallini said that there were no issues that required ventilation at trial.

"No serious issues to be tried for the reasons I have set out in relation to that application. I have concluded that the Interim Arrangement remains valid and subsisting beyond 29 January 2012. It continues to prevail," she said.

Nallini also said that the factual background or matrix of this case was neither complex nor warranted the calling of oral testimony.

"It is simply a claim for a debt due and owing for supply of dry gas, the supply of which is not in dispute," she said.

Petronas had filed a suit against Perwaja Steel on Jan 18 over a default in payment for the supply of gas to the steelmaker's direct reduction plant and steel mill in Kemaman, Terengganu.

In its statement of claim, Petronas sought payment of RM146.139 million as at Dec 31, 2012, interest amounting to RM10.313 million as at Jan 10 this year plus other interests, costs and relief as deemed fit by the court.