AHTC lawsuit

Panel wants to put AHTC's arbitration case on hold

Aljunied-Hougang Town and Aljunied-Hougang Town Council at Blk 701 Hougang Ave 2.
Aljunied-Hougang Town and Aljunied-Hougang Town Council at Blk 701 Hougang Ave 2. ST PHOTO: SEAH KWANG PENG

The independent panel bringing a lawsuit against members of the Aljunied-Hougang Town Council (AHTC) also wants to suspend an arbitration case between AHTC and its former managing agent firm.

The arbitration is over payments that the firm, FM Solutions and Services (FMSS), is claiming from AHTC for services it provided under two contracts.

The first contract was from July 2011 to July 2012, and the second from July 2012 to July 2015.

Soon after the second contract ended, FMSS sent the town council a letter of demand asking for the money it said it was owed.

The parties entered mediation talks in October 2015, and arbitration proceedings after that when mediation did not succeed.

Last Friday, the independent panel, which was appointed by AHTC in February and is acting in its name, filed a writ of summons seeking a court order for arbitration to be put on hold.

In a separate lawsuit, the panel alleged that all payments made to FMSS are void, as town councillors Low Thia Khiang and Sylvia Lim had acted in breach of their fiduciary duties in signing the contracts.

The panel also alleged that the FMSS contracts themselves are void and should be rescinded.

The Straits Times understands that this is the reason why the panel is seeking a stay on the arbitration.

According to case details seen by ST, the pre-trial conference for this matter will be on Aug 10.

 
A version of this article appeared in the print edition of The Straits Times on July 27, 2017, with the headline 'Panel wants to put AHTC's arbitration case on hold'. Print Edition | Subscribe