TENAGA NASIONAL BERHAD MALAYSIAN RESOURCES CORPORATION BERHAD

TENAGA NASIONAL BERHAD MALAYSIAN RESOURCES CORPORATION BERHAD

Court held s37(1) CIPAA must be read purposively: "may" is permissive and "referred concurrently" does not demand literal simultaneous commencement; adjudication may be initiated after arbitration has commenced so long as CIPAA's purpose (swift payment relief) is respected. The Payment Claim complied with s5(2); the adjudicator did not act beyond jurisdiction nor breach natural justice; there were no clear and unequivocal errors or justice reasons to justify a stay; enforcement under s28(1) CIPAA was therefore granted.

Citation
WA-24C-165-08/2022 (Mahkamah Tinggi)
Parties
Plaintiff in O.s. Nos. WA 24 C 165 08/2022 & WA 24 C 166 08/2022; Defendant in O.s. No. WA 24 C 167 08/2022: Tenaga Nasional Berhad; Defendant in O.s. Nos. WA 24 C 165 08/2022 & WA 24 C 166 08/2022; Plaintiff in O.s. No. WA 24 C 167 08/2022: Malaysian Resources Corporation Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
28 July 2023
Case Number
WA-24C-165-08/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summonses Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) Concerning Setting Aside, Stay and Enforcement of an Adjudication Decision / Full Grounds of Judgment Deciding Setting Aside Application (s15 Cipaa), Stay Application (s16 Cipaa) and Enforcement Application (s28 Cipaa)
Outcome
Setting Aside application dismissed; Stay application dismissed; Enforcement application allowed
Legal Topics
CIPAA S37 Concurrency, Adjudicator Jurisdiction, Payment Claim Requirements (s5 Cipaa), Natural Justice (s15(b) Cipaa), Stay of Enforcement (s16 Cipaa), Enforcement of Adjudication Decision (s28 Cipaa), Statutory Interpretation (s17 a Interpretation Acts)
Source Language
Malay/English
Construction Law Arbitration Law Civil Procedure Statutory Adjudication CIPAA S37 Concurrency Adjudicator Jurisdiction Payment Claim Requirements (s5 Cipaa) Natural Justice (s15(b) Cipaa) +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 12 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Tenaga Nasional Berhad

Plaintiff in O.s. Nos. WA 24 C 165 08/2022 & WA 24 C 166 08/2022; Defendant in O.s. No. WA 24 C 167 08/2022

Malaysian Resources Corporation Berhad

Defendant in O.s. Nos. WA 24 C 165 08/2022 & WA 24 C 166 08/2022; Plaintiff in O.s. No. WA 24 C 167 08/2022

Procedural Posture

Originating Summonses Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) Concerning Setting Aside, Stay and Enforcement of an Adjudication Decision / Full Grounds of Judgment Deciding Setting Aside Application (s15 Cipaa), Stay Application (s16 Cipaa) and Enforcement Application (s28 Cipaa)

Legal Issues

  1. 1 Whether the phrase "referred concurrently" in s37(1) CIPAA requires literal simultaneous commencement of adjudication and arbitration/court proceedings and thus deprives adjudicator of jurisdiction where arbitration commenced earlier
  2. 2 Whether the adjudicator exceeded jurisdiction by deciding on a payment claim that failed to comply with s5(2) CIPAA
  3. 3 Whether the adjudicator breached natural justice by refusing leave to file a rejoinder or by misapplying evidence and law

Ratio Decidendi

Court held s37(1) CIPAA must be read purposively: "may" is permissive and "referred concurrently" does not demand literal simultaneous commencement; adjudication may be initiated after arbitration has commenced so long as CIPAA's purpose (swift payment relief) is respected. The Payment Claim complied with s5(2); the adjudicator did not act beyond jurisdiction nor breach natural justice; there were no clear and unequivocal errors or justice reasons to justify a stay; enforcement under s28(1) CIPAA was therefore granted.

Court Disposition

Setting Aside application dismissed; Stay application dismissed; Enforcement application allowed

Orders

  • Setting Aside Application (O.S. No. WA-24C-165-08/2022) dismissed with costs RM12,000.00 (subject to standard allocatur fees)
  • Stay Application (O.S. No. WA-24C-166-08/2022) dismissed with costs RM5,000.00 (subject to standard allocatur fees)