SPNB ASPIRASI SDN BHD TUNAS MANJA DEVELOPMENT & CONSTRUCTION (KL) SDN BHD

SPNB ASPIRASI SDN BHD TUNAS MANJA DEVELOPMENT & CONSTRUCTION (KL) SDN BHD

SPNB failed to prove on the balance of probabilities any of the limited statutory grounds in s37 AA 2005: the arbitrator did not decide matters beyond the submission, acted within agreed procedure and jurisdiction (including on fraud and ancillary relief), the arbitration clause is separable, challenges to arbitrator were procedurally misframed/dilatory, alleged breaches of natural justice were either merits attacks or immaterial, and SPNB had opportunity to address costs but did not; accordingly both setting aside applications were dismissed.

Citation
WA-24C(ARB)-31-07/2022 (Mahkamah Tinggi)
Parties
Applicant (o.s. No. WA 24 C(arb) 27 07/2022); Defendant (o.s. No. WA 24 C(arb) 31 07/2022): Tunas Manja Development & Construction (KL) Sdn Bhd (Company No.: 1136494-H); Respondent (o.s. No. WA 24 C(arb) 27 07/2022); Plaintiff (o.s. No. WA 24 C(arb) 31 07/2022): SPNB Aspirasi Sdn Bhd (Company No.: 490479-V)
Court
ARB
Jurisdiction
Malaysia
Judgment Date
27 January 2023
Case Number
WA-24C(ARB)-31-07/2022 (Mahkamah Tinggi)
Procedural Posture
Applications to Set Aside Arbitral Award and to Set Aside Ex Parte Enforcement Order / Hearing and Judgment on Originating Summonses to Set Aside Award and Ex Parte Enforcement Order (decision Rendered)
Outcome
Both applications dismissed
Legal Topics
Setting Aside Arbitral Award (s37 Arbitration Act 2005), Natural Justice, Jurisdiction/kompetenz Kompetenz, Separability of Arbitration Clause, Enforcement of Arbitral Award (s38/39), Costs
Source Language
Malay/English
Arbitration Contract Civil Procedure Administrative Law (public Policy) Setting Aside Arbitral Award (s37 Arbitration Act 2005) Natural Justice Jurisdiction/kompetenz Kompetenz Separability of Arbitration Clause +2 more

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Parties

Tunas Manja Development & Construction (KL) Sdn Bhd (Company No.: 1136494-H)

Applicant (o.s. No. WA 24 C(arb) 27 07/2022); Defendant (o.s. No. WA 24 C(arb) 31 07/2022)

SPNB Aspirasi Sdn Bhd (Company No.: 490479-V)

Respondent (o.s. No. WA 24 C(arb) 27 07/2022); Plaintiff (o.s. No. WA 24 C(arb) 31 07/2022)

Procedural Posture

Applications to Set Aside Arbitral Award and to Set Aside Ex Parte Enforcement Order / Hearing and Judgment on Originating Summonses to Set Aside Award and Ex Parte Enforcement Order (decision Rendered)

Legal Issues

  1. 1 Whether the award decided matters beyond the scope of submission to arbitration
  2. 2 Whether the arbitrator lacked jurisdiction to decide alleged pre-contract fraud
  3. 3 Whether counsel conflict of interest/appearance breached rules of natural justice

Ratio Decidendi

SPNB failed to prove on the balance of probabilities any of the limited statutory grounds in s37 AA 2005: the arbitrator did not decide matters beyond the submission, acted within agreed procedure and jurisdiction (including on fraud and ancillary relief), the arbitration clause is separable, challenges to arbitrator were procedurally misframed/dilatory, alleged breaches of natural justice were either merits attacks or immaterial, and SPNB had opportunity to address costs but did not; accordingly both setting aside applications were dismissed.

Court Disposition

Both applications dismissed

Orders

  • Setting Aside Application - Award dismissed with costs of RM20,000.00 payable by SPNB Aspirasi Sdn Bhd, subject to allocatur
  • Setting Aside Application - Order dismissed with costs of RM10,000.00 payable by SPNB Aspirasi Sdn Bhd, subject to allocatur