PEMBINAAN BINA BUMI SDN BHD PANGLIMA BIDANG SDN BHD

PEMBINAAN BINA BUMI SDN BHD PANGLIMA BIDANG SDN BHD

The Court set aside the adjudication decision because the adjudicator failed to consider material elements of the dispute—specifically the Employer's Supplemental Agreement, Employer's SA, Debit Notes and related correspondence—which raised a plausible estoppel/privity argument and set-off that could have materially affected the outcome; that failure amounted to a breach of natural justice and/or took an erroneously restrictive view of jurisdiction, justifying setting aside under s15 CIPAA. The Court found the LAD and interest grounds did not independently warrant setting aside.

Citation
WA-24C-51-02/2022 (Mahkamah Tinggi)
Parties
Plaintiff (o.s. No. WA 24 C 19 01/2022); Defendant (o.s. No. WA 24 C 51 02/2022): Panglima Bidang Sdn Bhd (Company No.: 394420-D); Plaintiff (o.s. No. WA 24 C 51 02/2022); Defendant (o.s. No. WA 24 C 19 01/2022): Pembinaan Bina Bumi Sdn Bhd (Company No.: 854736-K)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
6 July 2022
Case Number
WA-24C-51-02/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summonses Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) for Enforcement and to Set Aside an Adjudication Decision / Judgment on Enforcement and Setting Aside Applications (decision Dated 19 August 2022)
Outcome
Setting Aside Application (O.S. No. WA-24C-51-02/2022) allowed; Adjudication Decision set aside. Enforcement Application (O.S. No. WA-24C-19-01/2022) dismissed.
Legal Topics
CIPAA S15 Set Aside, CIPAA S28 Enforcement, Natural Justice (denial), Privity of Contract and Direct Payment Arrangements, Estoppel by Convention/promissory Estoppel, Liquidated and Ascertained Damages, Late Payment Interest, Adjudicator Jurisdiction and Excess of Jurisdiction
Source Language
Malay/English
Construction Law Adjudication Law Civil Procedure Contract Law Equity (estoppel) CIPAA S15 Set Aside CIPAA S28 Enforcement Natural Justice (denial) +5 more

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Parties

Panglima Bidang Sdn Bhd (Company No.: 394420-D)

Plaintiff (o.s. No. WA 24 C 19 01/2022); Defendant (o.s. No. WA 24 C 51 02/2022)

Pembinaan Bina Bumi Sdn Bhd (Company No.: 854736-K)

Plaintiff (o.s. No. WA 24 C 51 02/2022); Defendant (o.s. No. WA 24 C 19 01/2022)

Procedural Posture

Originating Summonses Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) for Enforcement and to Set Aside an Adjudication Decision / Judgment on Enforcement and Setting Aside Applications (decision Dated 19 August 2022)

Legal Issues

  1. 1 Whether the adjudicator denied natural justice by failing to consider the Employer's Supplemental Agreement and related evidence (Debit Notes, correspondence) and PBB's set-offs
  2. 2 Whether the adjudicator erred or exceeded jurisdiction by failing to determine PBB's claim for liquidated and ascertained damages (LAD) or set-off for overpayment
  3. 3 Whether the adjudicator acted in excess of jurisdiction or erred in awarding late payment interest

Ratio Decidendi

The Court set aside the adjudication decision because the adjudicator failed to consider material elements of the dispute—specifically the Employer's Supplemental Agreement, Employer's SA, Debit Notes and related correspondence—which raised a plausible estoppel/privity argument and set-off that could have materially affected the outcome; that failure amounted to a breach of natural justice and/or took an erroneously restrictive view of jurisdiction, justifying setting aside under s15 CIPAA. The Court found the LAD and interest grounds did not independently warrant setting aside.

Court Disposition

Setting Aside Application (O.S. No. WA-24C-51-02/2022) allowed; Adjudication Decision set aside. Enforcement Application (O.S. No. WA-24C-19-01/2022) dismissed.

Orders

  • Setting Aside Application allowed and adjudication decision set aside; costs to Pembinaan Bina Bumi Sdn Bhd RM5,000.00 (subject to allocatur)
  • Enforcement Application dismissed; costs to Panglima Bidang Sdn Bhd RM3,000.00 (subject to allocatur)