CHINA CONSTRUCTION YANGTZE RIVER (MALAYSIA) SDN BHD AGILE PJD DEVELOPMENT SDN BHD

CHINA CONSTRUCTION YANGTZE RIVER (MALAYSIA) SDN BHD AGILE PJD DEVELOPMENT SDN BHD

The Court held that there was no breach of natural justice or clear and unequivocal error because the CNC was never produced to the Adjudicator despite opportunities to do so; therefore the Adjudicator could legitimately decide on the evidence before him. Further, the Court refused a stay pending arbitration because CCYR was financially secure and CIPAA's purpose of speedy recovery weighed against a stay. Consequently the Adjudication Decision was enforceable and the enforcement order was granted.

Citation
WA-24C-20-02/2024 (Mahkamah Tinggi)
Parties
Plaintiff (originating Summons WA 24 C 20 02/2024); Defendant (wa 24 C 37 03/2024 & WA 24 C 39 03/2024): China Construction Yangtze River (Malaysia) Sdn Bhd; Defendant (wa 24 C 20 02/2024); Plaintiff (wa 24 C 37 03/2024 & WA 24 C 39 03/2024): Agile PJD Development Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
26 July 2024
Case Number
WA-24C-20-02/2024 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Under Construction Industry Payment and Adjudication Act 2012 (cipaa) (enforcement, Setting Aside and Stay Applications) / Judgment on Enforcement, Setting Aside and Stay Applications
Outcome
Setting aside application (OS 37) dismissed with costs; Stay application (OS 39) dismissed with costs; Enforcement application (OS 20) granted (Order in Terms for prayers 1-3).
Legal Topics
Adjudication, Enforcement of Adjudication Decision, Setting Aside Adjudication Decision, Stay Pending Arbitration, Natural Justice
Source Language
Malay/English
Construction Law Arbitration Civil Procedure Injunctions Adjudication Enforcement of Adjudication Decision Setting Aside Adjudication Decision Stay Pending Arbitration +1 more

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Parties

China Construction Yangtze River (Malaysia) Sdn Bhd

Plaintiff (originating Summons WA 24 C 20 02/2024); Defendant (wa 24 C 37 03/2024 & WA 24 C 39 03/2024)

Agile PJD Development Sdn Bhd

Defendant (wa 24 C 20 02/2024); Plaintiff (wa 24 C 37 03/2024 & WA 24 C 39 03/2024)

Procedural Posture

Originating Summons Under Construction Industry Payment and Adjudication Act 2012 (cipaa) (enforcement, Setting Aside and Stay Applications) / Judgment on Enforcement, Setting Aside and Stay Applications

Legal Issues

  1. 1 Whether the Adjudication Decision should be set aside for breach of natural justice for failure to consider a Certificate of Non Completion (CNC)
  2. 2 Whether the CNC was before the Adjudicator and proved by the party asserting it
  3. 3 Whether a stay of enforcement of the Adjudication Decision pending arbitration should be granted

Ratio Decidendi

The Court held that there was no breach of natural justice or clear and unequivocal error because the CNC was never produced to the Adjudicator despite opportunities to do so; therefore the Adjudicator could legitimately decide on the evidence before him. Further, the Court refused a stay pending arbitration because CCYR was financially secure and CIPAA's purpose of speedy recovery weighed against a stay. Consequently the Adjudication Decision was enforceable and the enforcement order was granted.

Court Disposition

Setting aside application (OS 37) dismissed with costs; Stay application (OS 39) dismissed with costs; Enforcement application (OS 20) granted (Order in Terms for prayers 1-3).

Orders

  • Dismissed setting aside application in OS 37 with costs
  • Dismissed stay application in OS 39 with costs