Jakarta, November 2023. Our firm has efficaciously defended our client, PT Sunny Garden Property, a project owner, part of Country Garden group, over a PKPU claim from its contractors, formed as a joint operation.
The Claimant, a consortium of contractors, claimed that they have receivables which are due and payable. In contrast, our client, as Defendant, argued that the debts are disputed since the Claimant has defaulted its obligations under the contract. Further, the debts are not due and payable yet since the Claimant has not complied with the procedural terms on the certificate of payment and no approval by the Defendant as project owner on the progress payment. Thus, the debt is conditional and that condition is still outstanding.
The panel of the judges considers that the Claimant’s argument on the due and payable debt is not proven since the Defendant argued that the Claimant has defaulted its obligations and there was a claim lodged through a court against the Claimant. The Judex Facti then concludes that the claim contains a dispute and therefore its evidentiary process becomes not simple (complex) and the requirements for due and payable debt are not fulfilled. Responding to the court’s decision, our Dr. Leks says, “A disputed debt indicates a problem. The construction contract mechanism for progress payment is not simple especially when there is a breach of contract. A final account is a best practice and mostly regulated in the contract. A claim with this character (disputed and complex) should have been resolved in the public court or arbitration, not in the commercial court.”
Leks&Co is a recommended firm on commercial dispute resolution by Legal500, asialaw, and Benchmark Litigation.
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