JAMBATAN KEDUA SDN BHD GAMMERLITE SDN BHD

JAMBATAN KEDUA SDN BHD GAMMERLITE SDN BHD

The court found that all statutory requirements for enforcement under s28 CIPAA were met and allowed enforcement of the adjudication decision. Independently, the court exercised its discretion under s16 CIPAA to grant a conditional stay in the interest of justice because Gammerlite’s financial statements and CCM records demonstrated a precarious financial position creating a real risk it could not repay the adjudicated sum; accordingly the court ordered the adjudicated amount (as specified) to be placed in an interest‑bearing stakeholder account held by Gammerlite’s solicitors pending final arbitration, and ordered no costs.

Citation
WA-24C-87-05/2023 (Mahkamah Tinggi)
Parties
Plaintiff (o.s. No. 87); Defendant (o.s. No. 112): Jambatan Kedua Sdn Bhd; Defendant (o.s. No. 87); Plaintiff (o.s. No. 112): Gammerlite Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
27 September 2023
Case Number
WA-24C-87-05/2023 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) — Enforcement (s28) and Stay (s16) Applications / High Court Decision on Interlocutory Applications (grounds of Judgment)
Outcome
Enforcement application allowed; stay application allowed in the alternative on a conditional basis (conditional stay subject to deposit).
Legal Topics
Enforcement of Adjudication Decision, Stay of Adjudication Decision, Liquidated Ascertained Damages, Set Off, Judicial Discretion, Financial Capacity to Satisfy Award
Source Language
Malay/English
Construction Law Adjudication (cipaa) Arbitration Law Civil Procedure Enforcement of Adjudication Decision Stay of Adjudication Decision Liquidated Ascertained Damages Set Off +2 more

Case Brief

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Parties

Jambatan Kedua Sdn Bhd

Plaintiff (o.s. No. 87); Defendant (o.s. No. 112)

Gammerlite Sdn Bhd

Defendant (o.s. No. 87); Plaintiff (o.s. No. 112)

Procedural Posture

Originating Summons Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) — Enforcement (s28) and Stay (s16) Applications / High Court Decision on Interlocutory Applications (grounds of Judgment)

Legal Issues

  1. 1 Whether the adjudication decision should be enforced as a judgment under s28 CIPAA
  2. 2 Whether the adjudication decision should be stayed under s16 CIPAA pending arbitration
  3. 3 Whether accrued LAD extinguished the adjudicated sum or gave rise to a right of set-off

Ratio Decidendi

The court found that all statutory requirements for enforcement under s28 CIPAA were met and allowed enforcement of the adjudication decision. Independently, the court exercised its discretion under s16 CIPAA to grant a conditional stay in the interest of justice because Gammerlite’s financial statements and CCM records demonstrated a precarious financial position creating a real risk it could not repay the adjudicated sum; accordingly the court ordered the adjudicated amount (as specified) to be placed in an interest‑bearing stakeholder account held by Gammerlite’s solicitors pending final arbitration, and ordered no costs.

Court Disposition

Enforcement application allowed; stay application allowed in the alternative on a conditional basis (conditional stay subject to deposit).

Orders

  • Adjudication Decision dated 28.4.2023 is enforced as an order of the High Court pursuant to s28 CIPAA.
  • Conditional stay granted under s16 CIPAA: 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 the date of the sealed Order and to remain there until final determination by arbitration.