Muscat: Muscat Stock Exchange (MSX)-listed Al Hassan Engineering Co. SAOG (AHEC) agreed to a settlement after it obtained a successful ICC arbitration award against Hyundai Rotem, a transport and infrastructure arm of the Hyundai Motor Group, Korea.
The international arbitration tribunal upheld Al Hassan’s claims in the arbitration and refused Hyundai’s claim for delay penalties. The London-seated tribunal was chaired by Singaporean Christopher Lau Senior Lawyer of 3VB co-arbitrators and included Peter Mansour, from Peter Mansour Al Sharji law firm in Muscat, appointed by Al Hassan, and the UK’s Marion Smith King’s Counsel of 39 Essex Chambers, appointed by Hyundai Rotem.
Al Hassan was advised by MASIN, Oman, a renowned claim firm and Dubai-based MRP Advisory. Hyundai Rotem used Korean firm Lee & Ko and David Johnson of Atkin Chambers, London.
Omani state entity Haya awarded Hyundai Rotem a contract in 2008 to build the A’Seeb facility, Muscat’s first wastewater management system. The project includes over 1,000 kilometres of sewage collection and distribution lines in Muscat. The following year, Al Hassan entered a subcontract with Hyundai Rotem for construction works at the project.
Al Hassan filed for arbitration in 2019, saying Hyundai Rotem had breached the subcontract and was liable for damages due to delays. Hyundai counterclaimed, seeking damages for allegedly defective, delayed and incomplete works by Al Hassan.
The tribunal issued an award in April following a hearing in Dubai last year. It granted Al Hassan an extension of time and additional costs. The tribunal rejected Hyundai’s jurisdictional arguments and counterclaims.
Al Hassan was awarded balance payments due under the sub-contract, as well as interest and partial costs of the expenses incurred in the arbitration.
