1. ) LION PACIFIC SDN. BHD. (BA-24C-73-07/2020) [Co. No.: 199001015947 (207616-P)] 2. ) PESTECH TECHNOLOGY SDN. BHD. (BA-24C-70-07/2020) (Co. No.: 201301045990(1075814-X)] 1. ) PESTECH TECHNOLOGY SDN. BHD. [Co. No.: 201301045990 (1075814-X)

1. ) LION PACIFIC SDN. BHD. (BA-24C-73-07/2020) [Co. No.: 199001015947 (207616-P)] 2. ) PESTECH TECHNOLOGY SDN. BHD. (BA-24C-70-07/2020) (Co. No.: 201301045990(1075814-X)] 1. ) PESTECH TECHNOLOGY SDN. BHD. [Co. No.: 201301045990 (1075814-X)

The court held the adjudicator had jurisdiction because the parties' rights arose under the Sub-Contract executed after CIPAA; Clause 4.1 was a pay-when-certified provision and void under the broad operation of s35(1) CIPAA; there was no breach of natural justice or jurisdictional excess to warrant setting aside; LP failed to show grounds for a stay under s16; leave to enforce under s28 was granted to PT.

Citation
: BA-24C-73-07/2020 & BA-24C-70-07/2020 (Mahkamah Tinggi)
Parties
Plaintiff/defendant: Lion Pacific Sdn. Bhd.; Plaintiff/defendant: Pestech Technology Sdn. Bhd.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
29 September 2020
Case Number
: BA-24C-73-07/2020 & BA-24C-70-07/2020 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Under CIPAA (setting Aside, Stay and Enforcement) / Judgment Delivered
Outcome
LP's application to set aside dismissed; LP's application to stay dismissed; PT's application for leave to enforce granted
Legal Topics
CIPAA Jurisdiction, Conditional Payment Provisions, Pay When Certified, Stay of Enforcement, Set Aside Adjudication, Natural Justice, Estoppel
Source Language
Malay/English

Case Brief

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Parties

Lion Pacific Sdn. Bhd.

Plaintiff/defendant

Pestech Technology Sdn. Bhd.

Plaintiff/defendant

Procedural Posture

Originating Summons Under CIPAA (setting Aside, Stay and Enforcement) / Judgment Delivered

  1. 1 Whether adjudicator had jurisdiction under CIPAA given subcontract incorporated a main contract entered into before CIPAA
  2. 2 Whether party is estopped from raising jurisdictional challenge
  3. 3 Whether Clause 4.1 (pay-when-certified) is void under s35(1) CIPAA and scope of s35(2)

Ratio Decidendi

The court held the adjudicator had jurisdiction because the parties' rights arose under the Sub-Contract executed after CIPAA; Clause 4.1 was a pay-when-certified provision and void under the broad operation of s35(1) CIPAA; there was no breach of natural justice or jurisdictional excess to warrant setting aside; LP failed to show grounds for a stay under s16; leave to enforce under s28 was granted to PT.

Court Disposition

LP's application to set aside dismissed; LP's application to stay dismissed; PT's application for leave to enforce granted

Orders

  • LP's originating summons (setting aside and stay) dismissed
  • PT's originating summons for leave to enforce adjudication decision allowed