YUEN KEONG CONSTRUCTION & RENOVATION SDN BHD TRENDZONE ENGINEERING & CONSTRUCTION (MALAYSIA) SDN BHD

YUEN KEONG CONSTRUCTION & RENOVATION SDN BHD TRENDZONE ENGINEERING & CONSTRUCTION (MALAYSIA) SDN BHD

The Adjudicator did not deny natural justice by refusing Trendzone's request for an indefinite extension to await arbitration results because the request amounted to an effective stay contrary to CIPAA's object; Trendzone had the material to present a set-off and failed to establish on a balance of probabilities that the adjudication process was procedurally unfair or biased, therefore the Setting Aside Application is dismissed and the Adjudication Decision is enforceable under s28 CIPAA.

Citation
WA-24C-157-09/2021 (Mahkamah Tinggi)
Parties
Plaintiff in O.s. No. WA 24 C 157 09/2021; Defendant in O.s. No. WA 24 C 163 09/2021: Yuen Keong Construction & Renovation Sdn Bhd; Plaintiff in O.s. No. WA 24 C 163 09/2021; Defendant in O.s. No. WA 24 C 157 09/2021: Trendzone Engineering & Construction (Malaysia) Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
26 January 2022
Case Number
WA-24C-157-09/2021 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) / High Court Determination of Setting Aside (s15 Cipaa) and Enforcement (s28 Cipaa) Applications; Judgment Delivered
Outcome
Setting Aside Application dismissed; Enforcement Application allowed
Legal Topics
Enforcement of Adjudication Decision, Setting Aside Adjudication Decision, Natural Justice (audi Alteram Partem and Bias), Extension of Time Under S25(p) CIPAA, Set Off/counterclaim in Adjudication, Costs
Source Language
Malay/English
Construction Law Adjudication Civil Procedure Arbitration Law Company Law Enforcement of Adjudication Decision Setting Aside Adjudication Decision Natural Justice (audi Alteram Partem and Bias) +3 more

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Parties

Yuen Keong Construction & Renovation Sdn Bhd

Plaintiff in O.s. No. WA 24 C 157 09/2021; Defendant in O.s. No. WA 24 C 163 09/2021

Trendzone Engineering & Construction (Malaysia) Sdn Bhd

Plaintiff in O.s. No. WA 24 C 163 09/2021; Defendant in O.s. No. WA 24 C 157 09/2021

Procedural Posture

Originating Summons Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) / High Court Determination of Setting Aside (s15 Cipaa) and Enforcement (s28 Cipaa) Applications; Judgment Delivered

Legal Issues

  1. 1 Whether refusal to grant an indefinite extension of time to file Adjudication Response amounted to denial of natural justice under s15(b) CIPAA
  2. 2 Whether Trendzone was denied fair hearing by being forced to file an incomplete response and whether that affected outcome
  3. 3 Whether there was apparent bias by the Adjudicator

Ratio Decidendi

The Adjudicator did not deny natural justice by refusing Trendzone's request for an indefinite extension to await arbitration results because the request amounted to an effective stay contrary to CIPAA's object; Trendzone had the material to present a set-off and failed to establish on a balance of probabilities that the adjudication process was procedurally unfair or biased, therefore the Setting Aside Application is dismissed and the Adjudication Decision is enforceable under s28 CIPAA.

Court Disposition

Setting Aside Application dismissed; Enforcement Application allowed

Orders

  • Setting Aside Application in O.S. No. WA-24C-163-09/2021 dismissed
  • Enforcement Application in O.S. No. WA-24C-157-09/2021 allowed and the Adjudication Decision dated 28.7.2021 is enforceable as if it were a High Court judgment