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

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

The court found PJZ's challenges amounted to impermissible review/appeal of the arbitrator's factual and evaluative findings; there was no proven 'Ali Baba' illegality, no breach of natural justice regarding the Addendum, and the Arbitrator properly considered termination notices and the evidence on Category 1 and 2 claims; accordingly the Final Award is valid, recognized and enforceable and the application to set aside is dismissed.

Citation
WA-24C(ARB)-57-08/2024 (Mahkamah Tinggi)
Parties
Plaintiff (os37) / Defendant (os57): Sungai Lui Construction & Development Sdn Bhd; Defendant (os37) / Plaintiff (os57): Pembinaan Jaya Zira Sdn Bhd
Court
ARB
Jurisdiction
Malaysia
Judgment Date
10 March 2025
Case Number
WA-24C(ARB)-57-08/2024 (Mahkamah Tinggi)
Procedural Posture
Arbitration Enforcement and Setting Aside of Award / Judgment on Originating Summons
Outcome
Originating Summons WA-24C(ARB)-57-08/2024 (OS57) dismissed; Final Award dated 31.5.2024 recognized and enforced as judgment; Originating Summons WA-24C(ARB)-37-06/2024 (OS37) allowed in part (enforcement).
Legal Topics
Enforcement of Arbitral Award, Setting Aside Arbitral Award, Illegality/'ali Baba' Arrangements, Breach of Natural Justice, Contract Termination, Assessment of Quantum and Valuation
Source Language
Malay/English
Arbitration Contract Public Policy Administrative Law (natural Justice) Enforcement of Arbitral Award Setting Aside Arbitral Award Illegality/'ali Baba' Arrangements Breach of Natural Justice +2 more

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Parties

Sungai Lui Construction & Development Sdn Bhd

Plaintiff (os37) / Defendant (os57)

Pembinaan Jaya Zira Sdn Bhd

Defendant (os37) / Plaintiff (os57)

Procedural Posture

Arbitration Enforcement and Setting Aside of Award / Judgment on Originating Summons

Legal Issues

  1. 1 Whether the arbitral award dated 31.5.2024 should be set aside for illegality/public policy ('Ali Baba') under Contracts Act 1950 s24(a)
  2. 2 Whether the arbitrator breached rules of natural justice by failing to consider relevant facts regarding the Addendum
  3. 3 Whether the Award conflicts with public policy by setting a dangerous precedent on termination

Ratio Decidendi

The court found PJZ's challenges amounted to impermissible review/appeal of the arbitrator's factual and evaluative findings; there was no proven 'Ali Baba' illegality, no breach of natural justice regarding the Addendum, and the Arbitrator properly considered termination notices and the evidence on Category 1 and 2 claims; accordingly the Final Award is valid, recognized and enforceable and the application to set aside is dismissed.

Court Disposition

Originating Summons WA-24C(ARB)-57-08/2024 (OS57) dismissed; Final Award dated 31.5.2024 recognized and enforced as judgment; Originating Summons WA-24C(ARB)-37-06/2024 (OS37) allowed in part (enforcement).

Orders

  • Dismiss OS 57 with costs
  • Recognize and enforce Final Award dated 31.5.2024 as judgment of the High Court