CIMB, along with its wholly-owned subsidiary CIMB SI 1 Sdn Bhd, has served a notice of arbitration on PLUS today.

“The company and CIMB SI 1 are seeking to invoke the arbitration agreement contained in the JVA in relation to disputes that have arisen with PLUS in connection with and/or under the JVA,” it said in a statement, referring to a 1998 joint venture agreement.

CIMB, CIMB SI 1 and PLUS had 20 years ago entered into a joint venture agreement with Touch ‘N Go Sdn Bhd (TNG), whose shareholders include CIMB and PLUS.

TNG launched its RFID pilot programme in September and is now in its second phase.

The RFID system is poised to replace card-based Touch ‘n Go and the SmartTAG system.

On Dec 15, PLUS announced that it was introducing an RFID toll payment system at selected locations in Penang and Kedah.

CIMB said as such, the concessionaire had violated the agreement’s obligations by launching its own system.

“Among others, the company and CIMB SI 1 are seeking an injunction to restrain PLUS from engaging in further business of the PLUS RFID system together with damages, interests and costs.”