GAMMERLITE SDN BHD JAMBATAN KEDUA SDN BHD

GAMMERLITE SDN BHD JAMBATAN KEDUA SDN BHD

The court enforced the Adjudication Decision under s.28 CIPAA because the statutory prerequisites were met (adjudicator rendered decision in claimant's favour, non-payment by due date, and no extant set-aside or final arbitration/court decision). The court nonetheless exercised its s.16 discretion to grant a conditional stay in the interest of justice because credible financial evidence showed a real risk Gammerlite could not repay the Adjudicated Sum; the conditional stay required the Adjudicated Sum (RM8,137,527.93) to be placed in an interest-bearing stakeholder account held by Gammerlite's solicitors pending arbitration. Both orders are legally permissible and not mutually exclusive.

Citation
WA-24C-112-07/2023 (Mahkamah Tinggi)
Parties
Plaintiff in O.s. No. WA 24 C 87 05/2023; Defendant in O.s. No. WA 24 C 112 07/2023: Jambatan Kedua Sdn Bhd; Plaintiff in O.s. No. WA 24 C 112 07/2023; Defendant in O.s. No. WA 24 C 87 05/2023: Gammerlite Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
27 September 2023
Case Number
WA-24C-112-07/2023 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (interlocutory Applications Under Cipaa) / Judgment on Applications to Enforce Adjudication Decision Under S.28 CIPAA and to Stay Adjudication Decision Under S.16 CIPAA
Outcome
Enforcement Application allowed; Stay Application allowed in the alternative by way of a conditional stay.
Legal Topics
Enforcement of Adjudication Decision, Stay of Adjudication Decision, Liquidated Ascertained Damages, Set Off, Assessment of Ability to Satisfy Award
Source Language
Malay/English
Construction Law Adjudication Arbitration Civil Procedure Enforcement of Adjudication Decision Stay of Adjudication Decision Liquidated Ascertained Damages Set Off +1 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 4 Authorities cited 12 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Jambatan Kedua Sdn Bhd

Plaintiff in O.s. No. WA 24 C 87 05/2023; Defendant in O.s. No. WA 24 C 112 07/2023

Gammerlite Sdn Bhd

Plaintiff in O.s. No. WA 24 C 112 07/2023; Defendant in O.s. No. WA 24 C 87 05/2023

Procedural Posture

Originating Summons (interlocutory Applications Under Cipaa) / Judgment on Applications to Enforce Adjudication Decision Under S.28 CIPAA and to Stay Adjudication Decision Under S.16 CIPAA

Legal Issues

  1. 1 Whether the Adjudication Decision (AD) can be enforced as a High Court judgment under s.28 CIPAA
  2. 2 Whether a stay of the AD should be granted under s.16 CIPAA where the subject matter is pending arbitration
  3. 3 Whether accumulated liquidated ascertained damages (LAD) extinguish the Adjudicated Sum or give rise to a right of set-off

Ratio Decidendi

The court enforced the Adjudication Decision under s.28 CIPAA because the statutory prerequisites were met (adjudicator rendered decision in claimant's favour, non-payment by due date, and no extant set-aside or final arbitration/court decision). The court nonetheless exercised its s.16 discretion to grant a conditional stay in the interest of justice because credible financial evidence showed a real risk Gammerlite could not repay the Adjudicated Sum; the conditional stay required the Adjudicated Sum (RM8,137,527.93) to be placed in an interest-bearing stakeholder account held by Gammerlite's solicitors pending arbitration. Both orders are legally permissible and not mutually exclusive.

Court Disposition

Enforcement Application allowed; Stay Application allowed in the alternative by way of a conditional stay.

Orders

  • Enforcement Application in O.S. No. WA-24C-112-07/2023 is allowed and the Adjudication Decision dated 28.4.2023 is enforced as an order of the High Court.
  • Stay Application in O.S. No. WA-24C-87-05/2023 allowed in the alternative: the sum of RM8,137,527.93 to be placed in an interest-bearing stakeholder account held by Gammerlite’s solicitors within 30 days from sealing of the Court’s Order, to be held until final determination by arbitration.