State-owned Kolej Universiti Insaniah (Kuin) has been ordered by the Alor Setar High Court to pay RM1.599 million to a hostel management company for breach of contract, said the plaintiff Shaikh Faisol Shaikh Yusoff, the managing director of Syarikat Shake Cuisine Sdn Bhd.

He expressed relief at the court's decision last Oct 31 despite not getting the full amount claimed for.

He had filed the suit against the defendant last March, seeking RM1.599 million in contract payment balance, RM200,000 costs for store rental loss and RM1,259,939 for loss of business, with interest at eight percent per annum, and other costs and reliefs.

In his statement of claim, he said the university had agreed to pay RM2.16 million to the company for provision of hostel and transportation services involving 300 students at Kuin's Sungai Petani branch.

"Kuin, in the three-year agreement between January 2009 and December 2011, agreed to pay RM200 monthly per student for the company's services but it breached the contract's terms causing us to incur losses,"  he told reporters at Sungai Petani today.

- Bernama