IPSA legal battle reaches Malaysian conclusion

A long-running legal battle reached its latest conclusion for IPSA Group on Thursday, with a claim brought by Iris Eco Power Sdn Bhd of Malaysia being rejected by the Federal Court in that country.

The AIM-traded power generation company entered into a contract with Iris to sell two of its Siemens Westinghouse turbines in October 2012, with a deposit of approximately $3.1m (£2.1m).

Iris subsequently failed to pay IPSA the balance of the consideration due, despite time extensions granted by IPSA, and so the deposit was forfeited under the terms of the contract signed by both parties.

Iris had attempted to have the deposit returned under the jurisdiction of Malaysia, although the contract was agreed under English law.

"Iris's appeal was rejected, bringing to a close any further attempts by Iris to seek jurisdiction in the Malaysian courts for the return of the deposit, which was non-refundable under English law", IPSA's board said in a statement on Thursday.