MCC OVERSEAS (M) SDN BHD TENG YUE OVERSEAS CONSTRUCTION SDN BHD

MCC OVERSEAS (M) SDN BHD TENG YUE OVERSEAS CONSTRUCTION SDN BHD

The court dismissed MCCO's applications to set aside and to stay execution because (1) an ongoing arbitration is not a ground to set aside under s.15 CIPAA and merits of the adjudication cannot be reviewed on a s.15 application; (2) there was no denial of natural justice nor excess of jurisdiction by the adjudicator; and (3) MCCO failed to show special circumstances to justify a stay under s.16. Consequently the adjudication decision was enforceable under s.28 and TYO's enforcement application was allowed.

Citation
JA-24C-1-01/2022 (Mahkamah Tinggi)
Parties
Plaintiff/defendant: MCC Overseas (M) Sdn. Bhd.; Plaintiff/defendant: Teng Yue Overseas Construction Sdn. Bhd.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
6 February 2023
Case Number
JA-24C-1-01/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summonses for Setting Aside, Stay and Enforcement of CIPAA Adjudication Decision / High Court Judgment on Applications
Outcome
MCCO's applications to set aside and to stay execution dismissed; TYO's application to enforce adjudication decision allowed.
Legal Topics
Enforcement of Adjudication Decision (cipaa), Setting Aside Adjudication Decision (s.15 Cipaa), Stay of Execution (s.16 Cipaa), Natural Justice, Jurisdiction of Adjudicator, Concurrent Arbitration and Adjudication (s.37 Cipaa)
Source Language
Malay/English
Construction Law Arbitration Law Civil Procedure Insolvency/companies Law Enforcement of Adjudication Decision (cipaa) Setting Aside Adjudication Decision (s.15 Cipaa) Stay of Execution (s.16 Cipaa) Natural Justice +2 more

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Parties

MCC Overseas (M) Sdn. Bhd.

Plaintiff/defendant

Teng Yue Overseas Construction Sdn. Bhd.

Plaintiff/defendant

Procedural Posture

Originating Summonses for Setting Aside, Stay and Enforcement of CIPAA Adjudication Decision / High Court Judgment on Applications

Legal Issues

  1. 1 Whether an ongoing arbitration or notice to arbitrate constitutes a ground to set aside an adjudication decision under s.15 CIPAA
  2. 2 Whether the High Court may review merits of an adjudication decision in setting aside proceedings
  3. 3 Whether there was denial of natural justice or excess of jurisdiction by the adjudicator

Ratio Decidendi

The court dismissed MCCO's applications to set aside and to stay execution because (1) an ongoing arbitration is not a ground to set aside under s.15 CIPAA and merits of the adjudication cannot be reviewed on a s.15 application; (2) there was no denial of natural justice nor excess of jurisdiction by the adjudicator; and (3) MCCO failed to show special circumstances to justify a stay under s.16. Consequently the adjudication decision was enforceable under s.28 and TYO's enforcement application was allowed.

Court Disposition

MCCO's applications to set aside and to stay execution dismissed; TYO's application to enforce adjudication decision allowed.

Orders

  • Dismiss JA-24C-1-01/2022 (setting aside application) with costs to TYO
  • Dismiss JA-24C-2-01/2022 (stay application) with costs to TYO