BRILLIANT STAR CONSTRUCTION (M) SDN BHD MRCB BUILDERS SDN BHD

BRILLIANT STAR CONSTRUCTION (M) SDN BHD MRCB BUILDERS SDN BHD

The Court found that s33A CIDB Act 1994 imposes a mandatory statutory requirement for skilled construction workers to be accredited; the Arbitrator materially erred in law in relation to that statutory obligation in a manner likely to have affected the outcome. That error engaged public policy and justified setting aside the Award under s37 AA 2005. The Court held it had no power to remit the dispute to a new tribunal and therefore set aside the Award and dismissed the enforcement application.

Citation
WA-24C(ARB)-49-07/2024 (Mahkamah Tinggi)
Parties
Applicant (originating Summons No. WA 24 C(arb) 34 05/2024); Respondent (os49): MRCB Builders Sdn Bhd (300947-T); Respondent (originating Summons No. WA 24 C(arb) 34 05/2024); Applicant (originating Summons No. WA 24 C(arb) 49 07/2024): Brilliant Star Construction (M) Sdn Bhd (1087157-U)
Court
ARB
Jurisdiction
Malaysia
Judgment Date
12 February 2025
Case Number
WA-24C(ARB)-49-07/2024 (Mahkamah Tinggi)
Procedural Posture
High Court Applications to Set Aside and to Enforce an Arbitral Award (arbitration Act 2005) / Judgment on Originating Summonses (applications OS34 and Os49)
Outcome
Final Award dated 18.04.2024 set aside under s37 Arbitration Act 2005; application to enforce Award (OS49) dismissed; originating summons to set aside (OS34) granted in part.
Legal Topics
Setting Aside Arbitral Award Under S37 AA 2005, Enforcement of Arbitral Award Under S38 AA 2005, Mandatory Statutory Accreditation (cidb S33 A), Breach of Natural Justice, Scope and Jurisdiction of Arbitral Tribunal
Source Language
Malay/English
Arbitration Construction Law Contract Law Public Law Setting Aside Arbitral Award Under S37 AA 2005 Enforcement of Arbitral Award Under S38 AA 2005 Mandatory Statutory Accreditation (cidb S33 A) Breach of Natural Justice +1 more

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Parties

MRCB Builders Sdn Bhd (300947-T)

Applicant (originating Summons No. WA 24 C(arb) 34 05/2024); Respondent (os49)

Brilliant Star Construction (M) Sdn Bhd (1087157-U)

Respondent (originating Summons No. WA 24 C(arb) 34 05/2024); Applicant (originating Summons No. WA 24 C(arb) 49 07/2024)

Procedural Posture

High Court Applications to Set Aside and to Enforce an Arbitral Award (arbitration Act 2005) / Judgment on Originating Summonses (applications OS34 and Os49)

Legal Issues

  1. 1 Whether the arbitral tribunal decided a dispute beyond the scope of submission to arbitration
  2. 2 Whether the arbitrator breached rules of natural justice and public policy by failing to give proper effect to mandatory statutory requirement s33A CIDB Act 1994
  3. 3 Whether the absence of express word 'accredited' in the contract exempts party from statutory accreditation

Ratio Decidendi

The Court found that s33A CIDB Act 1994 imposes a mandatory statutory requirement for skilled construction workers to be accredited; the Arbitrator materially erred in law in relation to that statutory obligation in a manner likely to have affected the outcome. That error engaged public policy and justified setting aside the Award under s37 AA 2005. The Court held it had no power to remit the dispute to a new tribunal and therefore set aside the Award and dismissed the enforcement application.

Court Disposition

Final Award dated 18.04.2024 set aside under s37 Arbitration Act 2005; application to enforce Award (OS49) dismissed; originating summons to set aside (OS34) granted in part.

Orders

  • Set aside the Final Award dated 18.04.2024 pursuant to s37 Arbitration Act 2005
  • Grant the reliefs sought in OS34 as ordered by the Court (orders in terms for prayers (a) and (e) of OS34)