Pali PTP Sdn Bhd Bond M & E Sdn Bhd

Pali PTP Sdn Bhd Bond M & E Sdn Bhd

The Court of Appeal held that Bond satisfied section 30 CIPAA; non-payment is presumed upon the applicant's written request shifting the onus to the principal to seek proof of payment; and 'adjudicated amount' in section 30 CIPAA includes the principal sum, interest and costs awarded in the adjudication decision; accordingly Appeal 314 was dismissed and Appeal 399 allowed, varying the High Court judgment to include interest and costs in the amount payable by Pali to Bond.

Citation
W-02(C)(A)-314-02/2021 (Mahkamah Rayuan)
Parties
Appellant (w 02(c)(a) 314 02/2021); Respondent (w 02(c)(a) 399 02/2021): PALI PTP SDN BHD; Respondent (w 02(c)(a) 314 02/2021); Appellant (w 02(c)(a) 399 02/2021): BOND M&E SDN BHD
Court
C
Jurisdiction
Malaysia
Judgment Date
9 December 2022
Case Number
W-02(C)(A)-314-02/2021 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal Under CIPAA (section 30) / Court of Appeal Grounds of Judgment (final Disposition)
Outcome
Appeal 314 dismissed; Appeal 399 allowed; High Court judgment varied to require payment of adjudicated amount including interest and costs.
Legal Topics
CIPAA Section 30 Direct Payment, Interpretation of 'adjudicated Amount', Enforcement of Adjudication Decision, Statutory Interpretation Purposive Approach
Source Language
Malay/English
Construction Law Statutory Adjudication Contract Law Civil Procedure CIPAA Section 30 Direct Payment Interpretation of 'adjudicated Amount' Enforcement of Adjudication Decision Statutory Interpretation Purposive Approach

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Parties

PALI PTP SDN BHD

Appellant (w 02(c)(a) 314 02/2021); Respondent (w 02(c)(a) 399 02/2021)

BOND M&E SDN BHD

Respondent (w 02(c)(a) 314 02/2021); Appellant (w 02(c)(a) 399 02/2021)

Procedural Posture

Civil Appeal Under CIPAA (section 30) / Court of Appeal Grounds of Judgment (final Disposition)

Legal Issues

  1. 1 Whether the principal/principal company must make direct payment under section 30 CIPAA upon written request
  2. 2 Whether the phrase 'adjudicated amount' in section 30 CIPAA includes interest and costs awarded in the adjudication decision
  3. 3 Whether the applicant must prove non-payment by the contractor before requesting direct payment under section 30 CIPAA

Ratio Decidendi

The Court of Appeal held that Bond satisfied section 30 CIPAA; non-payment is presumed upon the applicant's written request shifting the onus to the principal to seek proof of payment; and 'adjudicated amount' in section 30 CIPAA includes the principal sum, interest and costs awarded in the adjudication decision; accordingly Appeal 314 was dismissed and Appeal 399 allowed, varying the High Court judgment to include interest and costs in the amount payable by Pali to Bond.

Court Disposition

Appeal 314 dismissed; Appeal 399 allowed; High Court judgment varied to require payment of adjudicated amount including interest and costs.

Orders

  • Appeal 314 dismissed with costs of MYR 10,000.00 to Bond subject to allocator
  • Appeal 399 allowed with costs of MYR 10,000.00 to Bond subject to allocator