MELATI EVERGREEN SDN. BHD. GEOFORCE EAST SDN. BHD. 1. ) MELATI EVERGREEN SDN. BHD. 2. ) GEOFORCE EAST SDN. BHD.

MELATI EVERGREEN SDN. BHD. GEOFORCE EAST SDN. BHD. 1. ) MELATI EVERGREEN SDN. BHD. 2. ) GEOFORCE EAST SDN. BHD.

The High Court held MESB failed to prove on a balance of probabilities that the adjudicator committed a material breach of natural justice or exceeded jurisdiction. The adjudicator lawfully exercised powers under ss 12 and 25 CIPAA, provided parties adequate written opportunity (including three clarifications), and there was no evidence that an oral hearing or further procedure would have led to a different outcome. Consequently the adjudication decision was enforceable under s 28 CIPAA and MESB's setting aside and stay applications were dismissed.

Citation
WA-24C-149-08/2019 & WA-24C-222-10/2019 (Mahkamah Tinggi)
Parties
Applicant (enforcement) and Defendant (setting Aside): GEOFORCE EAST SDN. BHD.; Respondent (enforcement) and Plaintiff (setting Aside): MELATI EVERGREEN SDN. BHD.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
9 January 2020
Case Number
WA-24C-149-08/2019 & WA-24C-222-10/2019 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) Enforcement and Setting Aside / Judgment (high Court, Kuala Lumpur)
Outcome
Enforcement application allowed; setting aside and stay applications dismissed
Legal Topics
CIPAA Enforcement (s 28), Setting Aside Adjudication Decision (s 15), Stay of Enforcement (s 16), Natural Justice/audi Alteram Partem, Adjudicator Jurisdiction and Procedural Powers (ss 12, 25), Admissibility and Use of Documentary and Audio Evidence, Costs and Interest
Source Language
Malay/English
Construction Law Adjudication/alternative Dispute Resolution Civil Procedure Administrative Law (natural Justice) CIPAA Enforcement (s 28) Setting Aside Adjudication Decision (s 15) Stay of Enforcement (s 16) Natural Justice/audi Alteram Partem +3 more

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Parties

GEOFORCE EAST SDN. BHD.

Applicant (enforcement) and Defendant (setting Aside)

MELATI EVERGREEN SDN. BHD.

Respondent (enforcement) and Plaintiff (setting Aside)

Procedural Posture

Originating Summons Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) Enforcement and Setting Aside / Judgment (high Court, Kuala Lumpur)

Legal Issues

  1. 1 Whether respondent is estopped from raising matters not pleaded in affidavits
  2. 2 Whether adjudicator breached natural justice by refusing oral hearing and denying extension of time
  3. 3 Whether adjudicator acted in excess of jurisdiction in procedural rulings

Ratio Decidendi

The High Court held MESB failed to prove on a balance of probabilities that the adjudicator committed a material breach of natural justice or exceeded jurisdiction. The adjudicator lawfully exercised powers under ss 12 and 25 CIPAA, provided parties adequate written opportunity (including three clarifications), and there was no evidence that an oral hearing or further procedure would have led to a different outcome. Consequently the adjudication decision was enforceable under s 28 CIPAA and MESB's setting aside and stay applications were dismissed.

Court Disposition

Enforcement application allowed; setting aside and stay applications dismissed

Orders

  • Enforcement application WA-24C-149-08/2019 allowed under s 28 CIPAA and adjudication decision to be enforced as judgment of the High Court
  • Setting aside and stay applications in O.S. No. WA-24C-222-10/2019 dismissed