SMCC MALAYSIA SDN BHD MN PERMAI NETCOM SDN BHD

SMCC MALAYSIA SDN BHD MN PERMAI NETCOM SDN BHD

The court found the Adjudicator excluded and disregarded SMCC's set-off and counterclaims that were raised in the Adjudication Response, constituting a denial of natural justice; having satisfied section 15(b) CIPAA the Amended Adjudication Decision dated 5.3.2024 was set aside and related stay application dismissed as academic, and the enforcement application was dismissed with costs.

Citation
WA-24C-40-03/2024 (Mahkamah Tinggi)
Parties
Applicant in OS 40; Defendant in OS 47: SMCC Malaysia Sdn Bhd; Defendant in OS 40; Applicant in OS 47: MN Permai Netcom Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
8 October 2024
Case Number
WA-24C-40-03/2024 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Under CIPAA (set Aside and Enforcement Applications) / Hearing and Judgment on Applications to Set Aside Adjudication Decision and to Enforce Adjudication
Outcome
Adjudication Decision dated 5.3.2024 set aside pursuant to section 15(b) CIPAA; stay application dismissed as academic; enforcement application dismissed with costs.
Legal Topics
Statutory Adjudication Under CIPAA, Natural Justice, Set Off and Counterclaim, Stay of Enforcement, Enforcement of Adjudication
Source Language
Malay/English
Construction Law Adjudication Law Administrative Law Contract Law Statutory Adjudication Under CIPAA Natural Justice Set Off and Counterclaim Stay of Enforcement +1 more

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Parties

SMCC Malaysia Sdn Bhd

Applicant in OS 40; Defendant in OS 47

MN Permai Netcom Sdn Bhd

Defendant in OS 40; Applicant in OS 47

Procedural Posture

Originating Summons Under CIPAA (set Aside and Enforcement Applications) / Hearing and Judgment on Applications to Set Aside Adjudication Decision and to Enforce Adjudication

Legal Issues

  1. 1 Whether the Adjudicator breached natural justice by excluding or disregarding respondent's set-off and counterclaims raised in the Adjudication Response
  2. 2 Whether the Adjudicator acted beyond jurisdiction
  3. 3 Whether the Amended Adjudication Decision should be set aside under section 15 CIPAA

Ratio Decidendi

The court found the Adjudicator excluded and disregarded SMCC's set-off and counterclaims that were raised in the Adjudication Response, constituting a denial of natural justice; having satisfied section 15(b) CIPAA the Amended Adjudication Decision dated 5.3.2024 was set aside and related stay application dismissed as academic, and the enforcement application was dismissed with costs.

Court Disposition

Adjudication Decision dated 5.3.2024 set aside pursuant to section 15(b) CIPAA; stay application dismissed as academic; enforcement application dismissed with costs.

Orders

  • Set aside the Amended Adjudication Decision dated 5.3.2024 pursuant to section 15(b) CIPAA.
  • Enclosure 2 (stay application) dismissed with no order as to costs.