PUTRA NILAI BUILDERS SDN BHD MAJLIS DAERAH CAMERON HIGHLANDS

PUTRA NILAI BUILDERS SDN BHD MAJLIS DAERAH CAMERON HIGHLANDS

The adjudication decision was set aside because the adjudicator materially breached natural justice by deciding a new and different basis for the loss and expense claim first raised in the adjudication reply without giving the Council an opportunity to respond, and additionally acted in excess of jurisdiction by ordering reimbursement of LAD which does not amount to a 'payment' within s 4 CIPAA; those defects justified setting aside under limbs (b) and (d) of s 15 CIPAA.

Citation
WA-24C-129-08/2021 (Mahkamah Tinggi)
Parties
Plaintiff (os No. WA 24 C 129 08/2021); Defendant (os No. WA 24 C 138 08/2021): Putra Nilai Builders Sdn Bhd; Defendant (os No. WA 24 C 129 08/2021); Plaintiff (os No. WA 24 C 138 08/2021): Majlis Daerah Cameron Highlands
Court
High Court
Jurisdiction
Malaysia
Judgment Date
12 November 2021
Case Number
WA-24C-129-08/2021 (Mahkamah Tinggi)
Procedural Posture
Originating Summons — Enforcement and Setting Aside of Adjudication Decision Under CIPAA / Judgment on Interlocutory Applications (setting Aside and Enforcement)
Outcome
Council's setting aside application allowed; Putra Nilai Builders' enforcement application dismissed; Adjudication Decision set aside.
Legal Topics
CIPAA Enforcement, Setting Aside Adjudication Decision, Natural Justice in Adjudication, Adjudicator Jurisdiction Limits, Liquidated Ascertained Damages (lad), Loss and Expense Claims, Extension of Time
Source Language
Malay/English
Construction Law Adjudication Law Contract Law Administrative/procedural Fairness CIPAA Enforcement Setting Aside Adjudication Decision Natural Justice in Adjudication Adjudicator Jurisdiction Limits +3 more

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Parties

Putra Nilai Builders Sdn Bhd

Plaintiff (os No. WA 24 C 129 08/2021); Defendant (os No. WA 24 C 138 08/2021)

Majlis Daerah Cameron Highlands

Defendant (os No. WA 24 C 129 08/2021); Plaintiff (os No. WA 24 C 138 08/2021)

Procedural Posture

Originating Summons — Enforcement and Setting Aside of Adjudication Decision Under CIPAA / Judgment on Interlocutory Applications (setting Aside and Enforcement)

Legal Issues

  1. 1 Whether adjudicator breached rules of natural justice by deciding a new/alternative claim first raised in adjudication reply without giving respondent opportunity to comment
  2. 2 Whether adjudicator acted in excess of jurisdiction by deciding on a new basis for claim and ordering reimbursement of LAD which falls outside CIPAA 'payment'
  3. 3 Whether loss and expense claimed fits within definition of 'payment' under s 4 CIPAA

Ratio Decidendi

The adjudication decision was set aside because the adjudicator materially breached natural justice by deciding a new and different basis for the loss and expense claim first raised in the adjudication reply without giving the Council an opportunity to respond, and additionally acted in excess of jurisdiction by ordering reimbursement of LAD which does not amount to a 'payment' within s 4 CIPAA; those defects justified setting aside under limbs (b) and (d) of s 15 CIPAA.

Court Disposition

Council's setting aside application allowed; Putra Nilai Builders' enforcement application dismissed; Adjudication Decision set aside.

Orders

  • Adjudication Decision dated 25.6.2021 set aside pursuant to s 15(b) and s 15(d) CIPAA
  • PNB's enforcement application dismissed