Suit filed against Rotary Engineering regarding work done in Saudi Arabia

SINGAPORE - A Bahraini law firm and another party have filed a suit against Rotary Engineering and two of its officers in a Singapore court for alleged breaches of contract, the company said on Tuesday.

Mainboard-listed Rotary said in a filing with the Singapore Exchange that the suit was commenced by Kioumji & Eslim Law Firm, but did not name the other party. It also called the claims and allegations in the suit "spurious and unfounded".

"The plaintiffs have claimed for among other things, damages to be assessed for alleged breaches of contracts purportedly entered into between the company and plaintiffs concerning matters involving work done in the Kingdom of Saudi Arabia and disputes arising therefrom," the statement said.

Rotary Engineering said, under legal advice, it has insisted that the lawsuit be heard in Saudi Arabia "because Saudi Arabia is the country with which the purported contracts and the matters related to the suit have the closest connection."

Furthermore, criminal complaints concerning the matters raised in the suit, including one of forgery, have been made in Saudi Arabia against the second unnamed plaintiff; and it is proper the Saudi Arabian Courts be seized of all related proceedings, it added.

"The company will thus take all measures necessary to resist and refute these baseless claims and allegations, including applying to stay the Singapore court proceedings in favour of the appropriate forum to determine the case."

The Rotary board will update company shareholders and investors of any developments in the suit.

wrennie@sph.com.sg