MRCB BUILDERS SDN BHD PEMBINAAN MITRAJAYA SDN BHD

MRCB BUILDERS SDN BHD PEMBINAAN MITRAJAYA SDN BHD

The High Court held MRCB failed to prove denial of natural justice, lack of impartiality or excess of jurisdiction: the adjudicator considered submissions, exercised powers under s25 CIPAA to manage procedure and facts, legitimately found waiver by conduct and that time was rendered at large due to SO delays (defeating LAD entitlement), and acted within jurisdiction in awarding pre-adjudication interest under s25(o); accordingly the setting aside/stay application was dismissed and enforcement was allowed.

Citation
WA-24C-91-07/2021 (Mahkamah Tinggi)
Parties
Plaintiff (o.s. No. WA 24 C 91 07/2021); Defendant (o.s. No. WA 24 C 102 07/2021): MRCB Builders Sdn Bhd; Defendant (o.s. No. WA 24 C 91 07/2021); Plaintiff (o.s. No. WA 24 C 102 07/2021): Pembinaan Mitrajaya Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
13 January 2022
Case Number
WA-24C-91-07/2021 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (cipaa Adjudication Challenge and Enforcement) / Judgment (setting Aside/stay Dismissed; Enforcement Allowed)
Outcome
Setting Aside/Stay Application dismissed; Enforcement Application allowed
Legal Topics
Adjudication, Setting Aside Adjudication Decision, Enforcement of Adjudication Decision, Natural Justice, Jurisdictional Limits, Waiver, Extension of Time (eo T), Liquidated and Ascertained Damages, Stay Pending Arbitration, Pre Decision Interest
Source Language
Malay/English
Construction Law Adjudication (cipaa) Contract Law Civil Procedure Arbitration Law Adjudication Setting Aside Adjudication Decision Enforcement of Adjudication Decision +7 more

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Parties

MRCB Builders Sdn Bhd

Plaintiff (o.s. No. WA 24 C 91 07/2021); Defendant (o.s. No. WA 24 C 102 07/2021)

Pembinaan Mitrajaya Sdn Bhd

Defendant (o.s. No. WA 24 C 91 07/2021); Plaintiff (o.s. No. WA 24 C 102 07/2021)

Procedural Posture

Originating Summons (cipaa Adjudication Challenge and Enforcement) / Judgment (setting Aside/stay Dismissed; Enforcement Allowed)

Legal Issues

  1. 1 Whether adjudicator breached natural justice by deciding waiver issue without further parties' input
  2. 2 Whether adjudicator acted without independence or rewrote contractual terms (bias)
  3. 3 Whether adjudicator exceeded jurisdiction by awarding pre-adjudication interest

Ratio Decidendi

The High Court held MRCB failed to prove denial of natural justice, lack of impartiality or excess of jurisdiction: the adjudicator considered submissions, exercised powers under s25 CIPAA to manage procedure and facts, legitimately found waiver by conduct and that time was rendered at large due to SO delays (defeating LAD entitlement), and acted within jurisdiction in awarding pre-adjudication interest under s25(o); accordingly the setting aside/stay application was dismissed and enforcement was allowed.

Court Disposition

Setting Aside/Stay Application dismissed; Enforcement Application allowed

Orders

  • Setting Aside/Stay Application in O.S. No. WA-24C-91-07/2021 dismissed
  • Enforcement Application in O.S. No. WA-24C-102-07/2021 allowed (adjudication decision enforced as High Court judgment)