Breach of contract: Company sues police, govt

(The Star) – A canvas manufacturing company is suing the Government, the police force and two others for RM1.5mil for breach of contract.

System Canvas (M) Sdn Bhd claimed that the police logistics department director, the police force, the Home Ministry secretary-general and the Malaysian Government had failed to honour a contract worth RM833,332 with the compamy.

The suit was filed through the firm of Messrs Azmi Talib and Associates at the High Court civil registry here at about 1:30pm on Wednesday.

In its statement of claims, the plaintiff alleged that it had entered a contract on Jan 31, 2007, with the Malaysian Government to supply and deliver “multipurpose extendable tents” to the police force for the period of Oct 1, 2006, to Sept 30, 2008.

It claimed that the defendants had made two purchase orders dated Feb 22, 2006 of 163 units of the tents worth RM543,333, which has yet to be settled.

It said that the items had been packed for delivery, but on July 16, last year, it was ordered to undergo a new procedure called “Pre Delivery Inspection” which was not included in the terms and conditions of the contract.

The plaintiff had then abided by the order and the inspection was done at its premises.

However, it claimed that the defendants themselves did not have any standard operating procedure for such an inspection, and had also ordered that samples be sent to the Science And Technology Research Institute For Defence (Stride).

“We only received Stride’s results on Jan 14, this year, which is after the contract period.

“After abiding by all the orders and bureaucratic practices, we were informed on March 16 by a representative of the third defendant that as the contract period had ended, they were unable to do anything about it,” it said.

The plaintiff is claiming for a sum of RM543,333 in oustanding payment, and RM964,000 for special damages with cost and interest, for its alleged losses for the preparation of the tents, as well as the storage costs.