KWSL BUILDERS SDN BHD MUDAJAYA CORPORATION BERHAD

KWSL BUILDERS SDN BHD MUDAJAYA CORPORATION BERHAD

The court dismissed the applications to set aside both adjudication decisions and refused both stay applications because CIPAA permits concurrent adjudication despite prior litigation, s15 provides limited grounds to set aside which were not made out, respondents cannot raise cross-contract counterclaims or seek sums exceeding the claim in adjudication, alleged bad faith and abuse of process were not established, and the narrow View Esteem grounds for stay were not satisfied; the court granted leave to enforce both adjudication decisions under s28 CIPAA.

Citation
BA-24C-13-02/2022 (Mahkamah Tinggi)
Parties
Plaintiff and Defendant (various Originating Summonses): Mudajaya Corporation Bhd; Defendant and Plaintiff (various Originating Summonses): KWSL Builders Sdn. Bhd.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
21 June 2022
Case Number
BA-24C-13-02/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summonses Under CIPAA (setting Aside, Stay Applications and Enforcement Applications) / Judgment on Merits (decision Delivered)
Outcome
Setting aside applications dismissed; stay applications dismissed; enforcement applications allowed (leave to enforce adjudication decisions granted).
Legal Topics
Adjudication Under CIPAA, Setting Aside Adjudication Decisions (s15 Cipaa), Enforcement as Judgment (s28 Cipaa), Stay of Enforcement (s16 Cipaa), Issue Estoppel / Res Judicata, Natural Justice / Procedural Fairness, Jurisdiction of Adjudicator, Counterclaim and Set Off Limits, Abuse of Process
Source Language
Malay/English
Construction Law Statutory Adjudication (cipaa) Civil Procedure Company Insolvency and Enforcement Adjudication Under CIPAA Setting Aside Adjudication Decisions (s15 Cipaa) Enforcement as Judgment (s28 Cipaa) Stay of Enforcement (s16 Cipaa) +5 more

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Parties

Mudajaya Corporation Bhd

Plaintiff and Defendant (various Originating Summonses)

KWSL Builders Sdn. Bhd.

Defendant and Plaintiff (various Originating Summonses)

Procedural Posture

Originating Summonses Under CIPAA (setting Aside, Stay Applications and Enforcement Applications) / Judgment on Merits (decision Delivered)

Legal Issues

  1. 1 Whether adjudication decisions should be set aside solely because a prior suit exists
  2. 2 Whether commencing adjudication after commencement of litigation constitutes mala fides or abuse of process
  3. 3 Whether adjudication proceedings were contrary to the object of CIPAA

Ratio Decidendi

The court dismissed the applications to set aside both adjudication decisions and refused both stay applications because CIPAA permits concurrent adjudication despite prior litigation, s15 provides limited grounds to set aside which were not made out, respondents cannot raise cross-contract counterclaims or seek sums exceeding the claim in adjudication, alleged bad faith and abuse of process were not established, and the narrow View Esteem grounds for stay were not satisfied; the court granted leave to enforce both adjudication decisions under s28 CIPAA.

Court Disposition

Setting aside applications dismissed; stay applications dismissed; enforcement applications allowed (leave to enforce adjudication decisions granted).

Orders

  • Setting Aside Application BA-24C-20-03/2022 dismissed (OS No. 20)
  • Enforcement Originating Summons BA-24C-23-04/2022 allowed (Enforcement OS No. 23): leave granted to enforce adjudication decision dated 2.3.2022 as judgment