DAMAI CITY SDN BHD GRAND DYNAMIC BUILDERS SDN. BHD.

DAMAI CITY SDN BHD GRAND DYNAMIC BUILDERS SDN. BHD.

The court held the adjudication decision was not void under s12(3) CIPAA because lawful restraining orders and judicial management applications under Companies Act ss 368 and 410 suspended or restrained the adjudication proceedings and timelines; the adjudicator acted within her procedural powers (s25) in refusing a rejoinder and in releasing the decision only after advance security deposit and fees were dealt with (s19); DCSB is estopped from inconsistent positions and failed to establish special circumstances or clear errors to justify stay or setting aside; enforcement granted accordingly.

Citation
WA-24C-139-09/2024 (Mahkamah Tinggi)
Parties
Plaintiff (os WA 24 C 139 09/2024); Defendant (os WA 24 C 143 09/2024): Damai City Sdn Bhd; Defendant (os WA 24 C 139 09/2024); Plaintiff (os WA 24 C 143 09/2024): Grand Dynamic Builders Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
21 April 2025
Case Number
WA-24C-139-09/2024 (Mahkamah Tinggi)
Procedural Posture
Originating Summons for Setting Aside and Enforcement of Adjudication Decision Under CIPAA / High Court Judgment on Applications (decision Dated 21 April 2025)
Outcome
DCSB's applications to set aside the adjudication decision and to stay it (Enclosure 1 and Enclosure 11 in OS WA-24C-139-09/2024) dismissed with costs; enforcement of Adjudication Decision dated 20.8.2024 granted (Order in Terms) in OS WA-24C-143-09/2024.
Legal Topics
Setting Aside Adjudication Decision, Enforcement of Adjudication Decision, Stay Pending Arbitration/adjudication, Restraining Orders and Judicial Management Impact on Proceedings, Natural Justice Rejoinder, Res Judicata, Payment Claims and Interim Certificates, Advance Security Deposit
Source Language
Malay/English
Construction Law Adjudication (cipaa) Company Law Civil Procedure Contract Law Setting Aside Adjudication Decision Enforcement of Adjudication Decision Stay Pending Arbitration/adjudication +5 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 8 Authorities cited 17 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Damai City Sdn Bhd

Plaintiff (os WA 24 C 139 09/2024); Defendant (os WA 24 C 143 09/2024)

Grand Dynamic Builders Sdn Bhd

Defendant (os WA 24 C 139 09/2024); Plaintiff (os WA 24 C 143 09/2024)

Procedural Posture

Originating Summons for Setting Aside and Enforcement of Adjudication Decision Under CIPAA / High Court Judgment on Applications (decision Dated 21 April 2025)

Legal Issues

  1. 1 Whether adjudication decision delivered outside 45 working days under s12(2)-(3) CIPAA is void where restraining orders and judicial management applications intervened
  2. 2 Whether restraining orders and judicial management applications under Companies Act 2016 ss 368 and 410 operate to suspend adjudication timelines and proceedings
  3. 3 Whether denial of leave to file a rejoinder breached natural justice and exceeded adjudicator's powers under s25 CIPAA

Ratio Decidendi

The court held the adjudication decision was not void under s12(3) CIPAA because lawful restraining orders and judicial management applications under Companies Act ss 368 and 410 suspended or restrained the adjudication proceedings and timelines; the adjudicator acted within her procedural powers (s25) in refusing a rejoinder and in releasing the decision only after advance security deposit and fees were dealt with (s19); DCSB is estopped from inconsistent positions and failed to establish special circumstances or clear errors to justify stay or setting aside; enforcement granted accordingly.

Court Disposition

DCSB's applications to set aside the adjudication decision and to stay it (Enclosure 1 and Enclosure 11 in OS WA-24C-139-09/2024) dismissed with costs; enforcement of Adjudication Decision dated 20.8.2024 granted (Order in Terms) in OS WA-24C-143-09/2024.

Orders

  • Dismissed Enclosure 1 (setting aside adjudication decision dated 20.8.2024) in Originating Summons WA-24C-139-09/2024 with costs to Grand Dynamic Builders Sdn Bhd
  • Dismissed Enclosure 11 (application for stay of adjudication decision) in Originating Summons WA-24C-139-09/2024 with costs to Grand Dynamic Builders Sdn Bhd