1. ) BA-24C-5-03/2021 INTEGRAL ACRES SDN. BHD. (Co. No.: 672818-M) 2. ) BA-24C-7-03/2021 BCEG INTERNATIONAL (M) SDN. BHD. (Co. No.: 96600729-U) 3. ) BA-24C-10-04/2021 INTEGRAL ACRES SDN. BHD. (Co. No.: 672818-M) 1. ) BCEG INTERNATIONAL (M)

1. ) BA-24C-5-03/2021 INTEGRAL ACRES SDN. BHD. (Co. No.: 672818-M) 2. ) BA-24C-7-03/2021 BCEG INTERNATIONAL (M) SDN. BHD. (Co. No.: 96600729-U) 3. ) BA-24C-10-04/2021 INTEGRAL ACRES SDN. BHD. (Co. No.: 672818-M) 1. ) BCEG INTERNATIONAL (M)

The court held the adjudicator had jurisdiction to decide unpaid certified works and to award interest thereon, but exceeded jurisdiction under CIPAA by adjudicating Loss (EOT) and costs relating to BCEG's disputes with subcontractors (these are not "payment" under s4 and no written extension under s27(2) existed); the adjudicator also lacked power to award costs/fees of the previous adjudication after the prior adjudicator resigned; the court refused to set aside the valid parts and granted partial enforcement of the adjudication (specified sums and costs of this adjudication) and dismissed applications to set aside and to stay enforcement.

Citation
BA-24C-5-03/2021, BA-24C-7-03/2021 & BA-24C-10-04/2021 (Mahkamah Tinggi)
Parties
Plaintiff/defendant (cross Applications): Integral Acres Sdn. Bhd.; Defendant/plaintiff (cross Applications): BCEG International (M) Sdn. Bhd.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
19 July 2021
Case Number
BA-24C-5-03/2021, BA-24C-7-03/2021 & BA-24C-10-04/2021 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Setting Aside, Stay and Enforcement Under CIPAA / Judgment on Three Originating Summonses
Outcome
Setting Aside OS dismissed; Stay OS dismissed; Enforcement OS granted in part (partial enforcement of adjudication decision)
Legal Topics
CIPAA 2012 Application, Adjudicator Jurisdiction and Powers, Setting Aside Adjudication, Enforcement of Adjudication Decision, Stay Pending Arbitration, Natural Justice in Adjudication, Costs of Adjudication
Source Language
Malay/English
Construction Law Statutory Adjudication Civil Procedure Arbitration Law Administrative Law CIPAA 2012 Application Adjudicator Jurisdiction and Powers Setting Aside Adjudication +4 more

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Parties

Integral Acres Sdn. Bhd.

Plaintiff/defendant (cross Applications)

BCEG International (M) Sdn. Bhd.

Defendant/plaintiff (cross Applications)

Procedural Posture

Originating Summons Setting Aside, Stay and Enforcement Under CIPAA / Judgment on Three Originating Summonses

Legal Issues

  1. 1 Whether adjudicator exceeded jurisdiction by awarding non-payment related losses (Loss of EOT and costs of proceedings)
  2. 2 Whether adjudicator had power to award costs/fees of a previous adjudication after resignation of previous adjudicator
  3. 3 Whether amounts in adjudication beyond sums claimed in payment claim are permissible

Ratio Decidendi

The court held the adjudicator had jurisdiction to decide unpaid certified works and to award interest thereon, but exceeded jurisdiction under CIPAA by adjudicating Loss (EOT) and costs relating to BCEG's disputes with subcontractors (these are not "payment" under s4 and no written extension under s27(2) existed); the adjudicator also lacked power to award costs/fees of the previous adjudication after the prior adjudicator resigned; the court refused to set aside the valid parts and granted partial enforcement of the adjudication (specified sums and costs of this adjudication) and dismissed applications to set aside and to stay enforcement.

Court Disposition

Setting Aside OS dismissed; Stay OS dismissed; Enforcement OS granted in part (partial enforcement of adjudication decision)

Orders

  • Setting Aside OS BA-24C-5-03/2021 dismissed
  • Stay OS BA-24C-10-04/2021 dismissed