KUALA LUMPUR – Brahim’s Food Services Sdn Bhd has filed a lawsuit against Keretapi Tanah Melayu Berhad (KTMB), seeking over RM8 million in damages for alleged breach of contract.
The catering company claims that KTMB’s actions resulted in significant loss of profits, following a 2018 agreement that Brahim’s asserts was not honoured.
According to the statement of claim dated 5 March, the two parties had entered into a contract in which Brahim’s was to provide catering services for all Electronic Train Services (ETS) from May 1, 2017 to April 30, 2022.
However, in April 2018, Brahim’s alleged that KTMB barred them from catering for the ETS Platinum class service, a move that the company claims violated the terms of their agreement.
Brahim’s contends that this alleged breach resulted in a monthly loss of RM350,000 in profits.
“Thus, the defendant is responsible for the plaintiff’s loss of earnings for a total of 23 months from April 2018 to February 2020,” the statement of claim, which was filed at the Kuala Lumpur High Court, read.
In total, Brahim’s is seeking RM8,050,000 in lost profits, excluding damages from March 2020 to June 2020 due to the impact of the Covid-19 pandemic.
In its defence, KTMB denies preventing Brahim’s from delivering services, instead claiming that the catering company terminated the agreement.
KTMB also asserts that Brahim’s never raised concerns about being prevented from catering for the ETS Platinum class and points to a letter from March 2020 in which Brahim’s issued a 90-day notice to terminate the contract.
KTMB’s defence further reveals that the rail operator had previously filed a suit against Brahim’s in the Sepang Sessions Court, seeking RM861,849.77 in unpaid dues under a profit-sharing scheme outlined in the original agreement.
Both parties have lodged various applications with the high court. KTMB has requested that the case be transferred to the Sepang sessions court to be heard alongside their ongoing dispute. Brahim’s, on the other hand, has applied for summary judgement.
The case is scheduled for case management on September 2, before judge Datuk Ahmad Shahrir Mohd Salleh, according to the court’s e-filing system. – August 21, 2024