RAGAWANG CORPORATION SDN BHD ONE AMERIN RESIDENCE SDN BHD

RAGAWANG CORPORATION SDN BHD ONE AMERIN RESIDENCE SDN BHD

The High Court found the 2nd arbitrator made material errors and contradictions by deciding termination based on an incomplete documentary record and incorrect factual assumptions (including that certain issues had been decided in the 1st arbitration and that set-off had disposed of the subject matter), and by denying Ragawang a meaningful opportunity to be heard; those breaches of natural justice had a real and substantial impact on the outcome and thereby rendered the awards in conflict with the public policy of Malaysia under s37 of the Arbitration Act 2005, warranting setting aside of the Final Awards terminating the 2nd and 3rd Notices of Arbitration.

Citation
BA-24C(ARB)-9-11/2022 (Mahkamah Tinggi)
Parties
Applicant/plaintiff: Ragawang Corporation Sdn Bhd; Respondent/defendant: One Amerin Residence Sdn Bhd
Court
ARB
Jurisdiction
Malaysia
Judgment Date
20 November 2023
Case Number
BA-24C(ARB)-9-11/2022 (Mahkamah Tinggi)
Procedural Posture
Arbitration Setting Aside Award (originating Summons) / High Court Judgment on Originating Summons
Outcome
Originating summons allowed in part; Final Awards terminating the 2nd and 3rd Notices of Arbitration set aside for breach of natural justice and conflict with public policy
Legal Topics
Setting Aside Arbitral Award, Jurisdiction Objection, Natural Justice, Public Policy, PAM Contract Provisions, Final Account Disputes, Retention Sum and Set Off
Source Language
Malay/English
Arbitration Law Contract Law Administrative Law Setting Aside Arbitral Award Jurisdiction Objection Natural Justice Public Policy PAM Contract Provisions +2 more

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Parties

Ragawang Corporation Sdn Bhd

Applicant/plaintiff

One Amerin Residence Sdn Bhd

Respondent/defendant

Procedural Posture

Arbitration Setting Aside Award (originating Summons) / High Court Judgment on Originating Summons

Legal Issues

  1. 1 Whether the 2nd arbitrator made errors and contradictions in terminating the 2nd and 3rd Notices of Arbitration
  2. 2 Whether the 2nd arbitrator breached rules of natural justice (right to be heard and impartiality)
  3. 3 Whether the awards terminating the arbitrations are in conflict with public policy under s37 of the Arbitration Act 2005

Ratio Decidendi

The High Court found the 2nd arbitrator made material errors and contradictions by deciding termination based on an incomplete documentary record and incorrect factual assumptions (including that certain issues had been decided in the 1st arbitration and that set-off had disposed of the subject matter), and by denying Ragawang a meaningful opportunity to be heard; those breaches of natural justice had a real and substantial impact on the outcome and thereby rendered the awards in conflict with the public policy of Malaysia under s37 of the Arbitration Act 2005, warranting setting aside of the Final Awards terminating the 2nd and 3rd Notices of Arbitration.

Court Disposition

Originating summons allowed in part; Final Awards terminating the 2nd and 3rd Notices of Arbitration set aside for breach of natural justice and conflict with public policy

Orders

  • Set aside the Final Awards terminating the 2nd and 3rd Notices of Arbitration
  • Remit the jurisdictional objections for rehearing or further determination consistent with this judgment