Penang council awarded RM5.76mil in damages over parking fee dispute

2026-03-02 - 08:54

The Penang City Council had appointed Perkhidmatan Alam Indah to print parking coupons and sell them to the public from May 5, 2013, to May 4, 2018. (Bernama pic) PENANG: The High Court here has allowed in part the Penang City Council’s counterclaim for nearly RM5.76 million in damages against a company appointed to collect parking fees on the island. Justice Kenneth St James ordered Perkhidmatan Alam Indah Sdn Bhd to pay the local authority RM5.702 million in unpaid monthly fees and a further RM64,000 for claims related to smart parking gadgets and prepaid devices. However, he dismissed the council’s RM36 million claim for unpaid notices of offences issued to vehicle owners. The judge also ruled that the council was entitled to terminate its agreement with the company for breach of contract. He noted that the company had admitted the arrears were not paid on time, and its witness conceded that the breaches were not remedied. “The termination is valid and lawful,” he said in his broad grounds delivered at the High Court last week. St James also dismissed the company’s suit against the council, finding that it had failed to prove its case on a balance of probabilities. He said the company, represented by Teh Chiew Yin and Lee Kok Hao, failed to adequately plead the losses it allegedly suffered in its statement of claim. “The allegation of lack of enforcement on the part of the council does not excuse Alam Indah from its contractual obligation to pay its fixed monthly fees,” he added. St James ordered Perkhidmatan Alam Indah to pay RM450,000 in costs to the council, which was represented by Karin Lim, M Murgan, Terry Lim and Clifford Ong. Court documents showed that the council appointed Perkhidmatan Alam Indah to print parking coupons and sell them to the public from May 5, 2013, to May 4, 2018. Motorists were required to display the coupons on their windscreens when parking in designated bays on Penang island, with enforcement carried out by council officers. Officers would issue notifications of offences, after which criminal proceedings could be instituted against offenders. Perkhidmatan Alam Indah agreed to pay a fixed monthly fee to the council with effect from April 1, 2014. However, a dispute arose when the company failed to make payments on time, despite numerous notices being issued. On Oct 23, 2017, the council issued a notice to remedy, demanding payment of all outstanding fixed monthly fees. When the company failed to fully comply, the council terminated the agreement on Jan 15, 2018. In its suit, the company sought a declaration that the termination notice was null and void, along with RM3.1 million in compensation. The council filed a defence and counterclaim and also sought an order compelling the company to deliver the prepaid parking system, including all related information and sales data connected to the management of the parking system.