Felda Investment Corp-Synergy Promenade land dispute to go to arbitration

Synergy Promenade had initially been appointed as the master developer of the KL Vertical City project — Picture by Yusof Mat Isa
Synergy Promenade had initially been appointed as the master developer of the KL Vertical City project — Picture by Yusof Mat Isa

KUALA LUMPUR, Sept 7 — The issue over an agreement over 24 parcels of land belonging to Felda in Jalan Semarak here between Felda Investment Corporation Sdn Bhd (FIC) and Synergy Promenade Sdn Bhd (SPSB) will continue to go for arbitration.

This follows the decision of High Court Judicial Commissioner Anand Ponnudurai to dismiss FIC’s application as the plaintiff for an injunction against the arbitration process on the issue.

This was informed by lawyers Amrit Pal Singh and RK Sharma who represented SPSB as defendants, after the court proceeding here today.

Amrit Pal said the court made the ruling after finding that any issue involving FIC and Synergy Promenade should be heard through arbitration proceedings.

“The FIC’s application to prevent Synergy Promenade from proceeding with the arbitration proceedings was rejected by the court at a cost of RM25,000,” he said.

Lawyer Kumar Kanagasingam represented FIC.

FIC as the plaintiff in its originating summons on Jan 24 sought to declare article 9.04 of the development agreement between the two parties on June 2, 2014, null and void, inoperative, and incapable to be performed.

Synergy Promenade was appointed by Felda to be the master developer of the KL Vertical City project, but the deal failed to materialise.

According to FIC, said the arbitration proceedings initiated by the defendant through the Notice of Arbitration on Nov 25, 2019, at the Asian International Arbitration Center (AIAC) against the plaintiff was void or invalid and that the proceeding was an abuse of process.

FIC said the defendant and a related company Synergy Promenade KLVC Sdn Bhd (SPKLVC) had already initiated two separate court proceedings against the plaintiff and Felda last year, in relation to two plots of Felda land along Jalan Semarak, and a development agreement for the latter to handover vacant possession of several parcels of land to the defendant. — Bernama

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