SUNGAI LUI CONSTRUCTION AND DEVELOPMENT SDN BHD PEMBINAAN JAYA ZIRA SDN BHD

SUNGAI LUI CONSTRUCTION AND DEVELOPMENT SDN BHD PEMBINAAN JAYA ZIRA SDN BHD

The High Court held that PJZ's submissions amount to an appeal on the merits of the arbitrator's decision rather than valid public policy or natural justice grounds; the arbitrator had considered the Addendum, notices and evidence, and there was insufficient proof of any 'Ali Baba' illegality or breach of natural justice. Consequently the Final Award was recognized, binding and enforceable as a judgment and the application to set aside was dismissed.

Citation
WA-24C(ARB)-37-06/2024 (Mahkamah Tinggi)
Parties
Plaintiff in Os37; Defendant in OS57: Sungai Lui Construction & Development Sdn Bhd; Defendant in Os37; Plaintiff in OS57: Pembinaan Jaya Zira Sdn Bhd
Court
ARB
Jurisdiction
Malaysia
Judgment Date
10 March 2025
Case Number
WA-24C(ARB)-37-06/2024 (Mahkamah Tinggi)
Procedural Posture
Enforcement of Arbitral Award and Application to Set Aside Award / High Court Judgment on Originating Summonses (enforcement OS37 and Setting Aside Os57)
Outcome
OS57 (set aside application by PJZ) dismissed with costs; OS37 (enforcement by SLC) allowed and Final Award recognized and enforced as a judgment
Legal Topics
Enforcement of Arbitral Award, Setting Aside Arbitral Award, Public Policy Challenge, Natural Justice, Contract Termination, Interpretation of Addendum
Source Language
Malay/English
Arbitration Contract Law Civil Procedure Public Policy Enforcement of Arbitral Award Setting Aside Arbitral Award Public Policy Challenge Natural Justice +2 more

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Parties

Sungai Lui Construction & Development Sdn Bhd

Plaintiff in Os37; Defendant in OS57

Pembinaan Jaya Zira Sdn Bhd

Defendant in Os37; Plaintiff in OS57

Procedural Posture

Enforcement of Arbitral Award and Application to Set Aside Award / High Court Judgment on Originating Summonses (enforcement OS37 and Setting Aside Os57)

Legal Issues

  1. 1 Whether the Final Award dated 31.5.2024 should be enforced under s.38 Arbitration Act 2005
  2. 2 Whether the Award should be set aside on public policy grounds (ali‑baba/illegality) under Contracts Act 1950 s24(a)
  3. 3 Whether the arbitrator breached rules of natural justice by failing to consider relevant facts concerning the Addendum

Ratio Decidendi

The High Court held that PJZ's submissions amount to an appeal on the merits of the arbitrator's decision rather than valid public policy or natural justice grounds; the arbitrator had considered the Addendum, notices and evidence, and there was insufficient proof of any 'Ali Baba' illegality or breach of natural justice. Consequently the Final Award was recognized, binding and enforceable as a judgment and the application to set aside was dismissed.

Court Disposition

OS57 (set aside application by PJZ) dismissed with costs; OS37 (enforcement by SLC) allowed and Final Award recognized and enforced as a judgment

Orders

  • OS57 dismissed with costs
  • OS37 allowed; Final Award dated 31.5.2024 recognized and enforced as a judgment