KONSESI KOTA PERMATAMAS SDN. BHD. ( / ) (Co. No.: 1009139-D) TECH ART SDN. BHD. ( / ) (Co. No.: 70793-H)

KONSESI KOTA PERMATAMAS SDN. BHD. ( / ) (Co. No.: 1009139-D) TECH ART SDN. BHD. ( / ) (Co. No.: 70793-H)

Applying the Federal Court precedent in Jack-In Pile, CIPAA does not apply to the Contract Documents because the Letter of Award was concluded before CIPAA's commencement, creating vested contractual rights and past transactions which cannot be impaired retrospectively; the later PAM Contract does not displace the LA by clause 5; therefore the adjudication decision made under CIPAA is void and must be set aside.

Citation
BA-24C-55-07/2018 DIDENGAR BERSAMA BA-24C-64-08/2018 (Mahkamah Tinggi)
Parties
Plaintiff (in OS BA 24 C 55 07/2018); Defendant (in OS BA 24 C 64 08/2018): KONSESI KOTA PERMATAMAS SDN. BHD. (Co. No.: 1009139-D); Plaintiff (in OS BA 24 C 64 08/2018); Defendant (in OS BA 24 C 55 07/2018): TECH ART SDN. BHD. (Co. No.: 70793-H)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
6 December 2019
Case Number
BA-24C-55-07/2018 DIDENGAR BERSAMA BA-24C-64-08/2018 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (two Heard Together) / Judgment (final Determination on Applicability of CIPAA and Enforcement/set Aside of Adjudication Decision)
Outcome
Konsesi Kota's originating summons allowed; Tech Art's originating summons dismissed; adjudication decision set aside.
Legal Topics
Application of CIPAA, Retrospectivity of Statutes, Enforcement of Adjudication Decision, Savings Provisions and Vested Rights
Source Language
Malay/English
Construction Law Contract Law Statutory Adjudication Civil Procedure Application of CIPAA Retrospectivity of Statutes Enforcement of Adjudication Decision Savings Provisions and Vested Rights

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Parties

KONSESI KOTA PERMATAMAS SDN. BHD. (Co. No.: 1009139-D)

Plaintiff (in OS BA 24 C 55 07/2018); Defendant (in OS BA 24 C 64 08/2018)

TECH ART SDN. BHD. (Co. No.: 70793-H)

Plaintiff (in OS BA 24 C 64 08/2018); Defendant (in OS BA 24 C 55 07/2018)

Procedural Posture

Originating Summons (two Heard Together) / Judgment (final Determination on Applicability of CIPAA and Enforcement/set Aside of Adjudication Decision)

Legal Issues

  1. 1 Whether CIPAA applies where the Letter of Award was concluded before CIPAA came into force but the PAM Contract was executed after CIPAA's commencement
  2. 2 Whether subsequent execution of a contract subject to an earlier Letter of Award displaces vested contractual rights and past transactions

Ratio Decidendi

Applying the Federal Court precedent in Jack-In Pile, CIPAA does not apply to the Contract Documents because the Letter of Award was concluded before CIPAA's commencement, creating vested contractual rights and past transactions which cannot be impaired retrospectively; the later PAM Contract does not displace the LA by clause 5; therefore the adjudication decision made under CIPAA is void and must be set aside.

Court Disposition

Konsesi Kota's originating summons allowed; Tech Art's originating summons dismissed; adjudication decision set aside.

Orders

  • Adjudication decision dated 6.6.2018 is set aside.
  • Tech Art's originating summons BA-24C-64-08/2018 is dismissed.