MERAH BAYU GLOBAL SDN. BHD. TK ELEVATOR MALAYSIA SDN. BHD.

MERAH BAYU GLOBAL SDN. BHD. TK ELEVATOR MALAYSIA SDN. BHD.

The stay application under s16(1)(b) CIPAA was dismissed because Merah Bayu did not establish that arbitration had commenced in accordance with the contract and PAM Rules (mere service of a Notice of Arbitration was insufficient), and it failed to demonstrate clear and unequivocal errors in the Adjudication Decision or that the interests of justice warranted a stay. The enforcement application under s28 CIPAA was allowed because TKE met statutory conditions for enforcement, Merah Bayu had not filed a s15 setting aside application and therefore could not rely on s15 grounds to resist enforcement.

Citation
WA-24C-145-09/2023 (Mahkamah Tinggi)
Parties
Plaintiff in O.s. No. WA 24 C 129 08/2023; Defendant in O.s. No. WA 24 C 145 09/2023: TK Elevator Malaysia Sdn Bhd; Defendant in O.s. No. WA 24 C 129 08/2023; Plaintiff in O.s. No. WA 24 C 145 09/2023: Merah Bayu Global Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
22 January 2024
Case Number
WA-24C-145-09/2023 (Mahkamah Tinggi)
Procedural Posture
Enforcement of Adjudication Decision Under CIPAA and Application to Stay Adjudication Decision Pending Arbitration / Originating Summons Heard and Judgment Delivered (stay Dismissed; Enforcement Allowed)
Outcome
Stay Application dismissed; Enforcement Application allowed and Adjudication Decision enforced as judgment
Legal Topics
Enforcement of Adjudication Decision, Stay of Adjudication Decision Under S16 CIPAA, Commencement of Arbitration Under Contract/pam Rules, Jurisdictional Challenge to Adjudicator, Setting Aside Adjudication Decision (s15 Cipaa), Costs and Late Filing
Source Language
Malay/English
Construction Law Arbitration Law Civil Procedure Statutory Adjudication Enforcement of Adjudication Decision Stay of Adjudication Decision Under S16 CIPAA Commencement of Arbitration Under Contract/pam Rules Jurisdictional Challenge to Adjudicator +2 more

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Parties

TK Elevator Malaysia Sdn Bhd

Plaintiff in O.s. No. WA 24 C 129 08/2023; Defendant in O.s. No. WA 24 C 145 09/2023

Merah Bayu Global Sdn Bhd

Defendant in O.s. No. WA 24 C 129 08/2023; Plaintiff in O.s. No. WA 24 C 145 09/2023

Procedural Posture

Enforcement of Adjudication Decision Under CIPAA and Application to Stay Adjudication Decision Pending Arbitration / Originating Summons Heard and Judgment Delivered (stay Dismissed; Enforcement Allowed)

Legal Issues

  1. 1 Whether arbitration had commenced in accordance with the contract and PAM Arbitration Rules to satisfy s16(1)(b) CIPAA
  2. 2 Whether the applicant for enforcement satisfied s28 CIPAA requirements to enforce an adjudication decision as judgment
  3. 3 Whether respondent could oppose enforcement by raising s15 CIPAA grounds without a s15 application

Ratio Decidendi

The stay application under s16(1)(b) CIPAA was dismissed because Merah Bayu did not establish that arbitration had commenced in accordance with the contract and PAM Rules (mere service of a Notice of Arbitration was insufficient), and it failed to demonstrate clear and unequivocal errors in the Adjudication Decision or that the interests of justice warranted a stay. The enforcement application under s28 CIPAA was allowed because TKE met statutory conditions for enforcement, Merah Bayu had not filed a s15 setting aside application and therefore could not rely on s15 grounds to resist enforcement.

Court Disposition

Stay Application dismissed; Enforcement Application allowed and Adjudication Decision enforced as judgment

Orders

  • Stay Application (O.S. No. WA-24C-145-09/2023) dismissed
  • Enforcement Application (O.S. No. WA-24C-129-08/2023) allowed and Adjudication Decision enforced as if a judgment of the High Court