1. ) SJIC BINA SDN BHD 2. ) ISKANDAR REGIONAL DEVELOPMENT AUTHORITY 1. ) ISKANDAR REGIONAL DEVELOPMENT AUTHORITY 2. ) SJIC BINA SDN BHD

1. ) SJIC BINA SDN BHD 2. ) ISKANDAR REGIONAL DEVELOPMENT AUTHORITY 1. ) ISKANDAR REGIONAL DEVELOPMENT AUTHORITY 2. ) SJIC BINA SDN BHD

IRDA failed to prove on the balance of probabilities that the arbitral tribunal committed breaches of the rules of natural justice or that the Award conflicted with Malaysia’s public policy; the Award contained sufficient reasons and demonstrably considered IRDA’s arguments (interpretation of 'savings', quantum, MNIC); the court will not re‑weigh factual findings and credibility determinations made by the tribunal; accordingly the applications to set aside the Award and to set aside enforcement were dismissed.

Citation
WA-24C(ARB)-35-08/2019 & WA-24C(ARB)-49-11/2019 (Mahkamah Tinggi)
Parties
Applicant in OS WA 24 C(arb) 35 08/2019; Respondent in OS WA 24 C(arb) 49 11/2019: SJIC Bina Sdn Bhd (Company No.: 809930-U); Applicant in OS WA 24 C(arb) 49 11/2019; Respondent in OS WA 24 C(arb) 35 08/2019: Iskandar Regional Development Authority (IRDA)
Court
ARB
Jurisdiction
Malaysia
Judgment Date
4 June 2020
Case Number
WA-24C(ARB)-35-08/2019 & WA-24C(ARB)-49-11/2019 (Mahkamah Tinggi)
Procedural Posture
Applications to Set Aside and to Resist Enforcement of an Arbitral Award (originating Summons) / Judgment on Applications to Set Aside Arbitral Award and to Set Aside Enforcement Order (grounds of Judgment)
Outcome
All applications by IRDA to set aside the arbitral Award and to set aside enforcement order dismissed
Legal Topics
Setting Aside Arbitral Award Under Arbitration Act 2005 S 37, Public Policy as Ground to Set Aside Award, Breach of Rules of Natural Justice/audi Alteram Partem, Interpretation of Contractual Variation/design Change, Proof of Quantum and Expert Evidence, Estoppel, Enforcement of Arbitral Award
Source Language
Malay/English
Arbitration Construction/infrastructure Contracts Contract Law Civil Procedure Administrative/public Law Setting Aside Arbitral Award Under Arbitration Act 2005 S 37 Public Policy as Ground to Set Aside Award Breach of Rules of Natural Justice/audi Alteram Partem +4 more

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Parties

SJIC Bina Sdn Bhd (Company No.: 809930-U)

Applicant in OS WA 24 C(arb) 35 08/2019; Respondent in OS WA 24 C(arb) 49 11/2019

Iskandar Regional Development Authority (IRDA)

Applicant in OS WA 24 C(arb) 49 11/2019; Respondent in OS WA 24 C(arb) 35 08/2019

Procedural Posture

Applications to Set Aside and to Resist Enforcement of an Arbitral Award (originating Summons) / Judgment on Applications to Set Aside Arbitral Award and to Set Aside Enforcement Order (grounds of Judgment)

Legal Issues

  1. 1 Whether the arbitral award should be set aside for breach of natural justice in connection with making the award
  2. 2 Whether the arbitral award is in conflict with the public policy of Malaysia
  3. 3 Whether the tribunal failed to consider IRDA’s key submissions on interpretation of 'any saving to the Contract', proof of quantum and scope of MNIC such that the award is vitiated

Ratio Decidendi

IRDA failed to prove on the balance of probabilities that the arbitral tribunal committed breaches of the rules of natural justice or that the Award conflicted with Malaysia’s public policy; the Award contained sufficient reasons and demonstrably considered IRDA’s arguments (interpretation of 'savings', quantum, MNIC); the court will not re‑weigh factual findings and credibility determinations made by the tribunal; accordingly the applications to set aside the Award and to set aside enforcement were dismissed.

Court Disposition

All applications by IRDA to set aside the arbitral Award and to set aside enforcement order dismissed

Orders

  • IRDA’s applications dismissed
  • IRDA to pay costs to SJIC Bina in the agreed sums: RM20,000.00 for each enclosure (two enclosures)