MAJLIS AGAMA ISLAM WILAYAH PERSEKUTUAN JOHAWAKI DEVELOPMENT SDN BHD

MAJLIS AGAMA ISLAM WILAYAH PERSEKUTUAN JOHAWAKI DEVELOPMENT SDN BHD

The High Court set aside the arbitral Award (14.12.2018) under s37 AA 2005 because the Arbitrator exceeded his jurisdiction by failing to decide key pleaded issues, deciding matters beyond the submission (including speculative factual findings), and producing an award tainted by breaches of the rules of natural justice and public policy (including allowing apparent double recovery and awarding special damages that exceeded pleaded claims); consequently the enforcement application was dismissed and extension of time to refer questions under s42 was refused.

Citation
WA-24C(ARB)-11-03/2019 & WA-24C(ARB)-12-03/2019 (Mahkamah Tinggi)
Parties
Applicant/defendant: Johawaki Development Sdn Bhd; Respondent/plaintiff: Majlis Agama Islam Wilayah Persekutuan (MAIWP)
Court
ARB
Jurisdiction
Malaysia
Judgment Date
31 October 2019
Case Number
WA-24C(ARB)-11-03/2019 & WA-24C(ARB)-12-03/2019 (Mahkamah Tinggi)
Procedural Posture
Arbitration — Setting Aside and Enforcement of Arbitral Award / High Court Judgment on Originating Summons (setting Aside and Enforcement Applications)
Outcome
MAIWP's application to set aside the arbitral award allowed; Johawaki's enforcement application dismissed; extension of time to refer questions of law refused.
Legal Topics
Setting Aside Arbitral Awards (s37), Enforcement of Awards (s38), Public Policy and Natural Justice, Pleadings and Scope of Arbitration, Damages: Expectation Vs Reliance, Reference of Questions of Law (s42), Jurisdictional Limits of Arbitrators
Source Language
Malay/English
Arbitration Contract Civil Procedure Public Law Administrative Law Setting Aside Arbitral Awards (s37) Enforcement of Awards (s38) Public Policy and Natural Justice +4 more

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Parties

Johawaki Development Sdn Bhd

Applicant/defendant

Majlis Agama Islam Wilayah Persekutuan (MAIWP)

Respondent/plaintiff

Procedural Posture

Arbitration — Setting Aside and Enforcement of Arbitral Award / High Court Judgment on Originating Summons (setting Aside and Enforcement Applications)

Legal Issues

  1. 1 Whether the arbitral award exceeded the tribunal’s mandate by deciding issues beyond the parties’ pleadings (new difference)
  2. 2 Whether the award conflicted with public policy because of breaches of natural justice
  3. 3 Whether the award allowed damages exceeding pleaded amounts and thus carried decisions beyond submission to arbitration

Ratio Decidendi

The High Court set aside the arbitral Award (14.12.2018) under s37 AA 2005 because the Arbitrator exceeded his jurisdiction by failing to decide key pleaded issues, deciding matters beyond the submission (including speculative factual findings), and producing an award tainted by breaches of the rules of natural justice and public policy (including allowing apparent double recovery and awarding special damages that exceeded pleaded claims); consequently the enforcement application was dismissed and extension of time to refer questions under s42 was refused.

Court Disposition

MAIWP's application to set aside the arbitral award allowed; Johawaki's enforcement application dismissed; extension of time to refer questions of law refused.

Orders

  • Arbitral Award dated 14.12.2018 is set aside pursuant to sections 37(1)(a)(v), 37(1)(b)(ii) and 37(2)(b)(ii) Arbitration Act 2005
  • Originating Summons WA-24C(ARB)-12-03/2019 (Setting Aside) allowed with costs to MAIWP of RM30000.00 (subject to allocatur)