DYNACIATE ENGINEERING SDN. BHD. (Co. No.: 579899-K) PUNJ LLOYD SDN. BHD. (Co. No.: 888132-D)

DYNACIATE ENGINEERING SDN. BHD. (Co. No.: 579899-K) PUNJ LLOYD SDN. BHD. (Co. No.: 888132-D)

The court held that (1) the defendant's procedural acts did not amount to 'steps' under s10(1) Arbitration Act 2005 because Order 18 r 2(2) Rules of Court 2012 rendered those acts permissible and they were taken to resist a summary judgment application (not to submit to court jurisdiction); (2) General Conditions 30.2 and 30.7 were incorporated into the purchase orders and therefore formed a valid, operative arbitration agreement covering the dispute; and (3) the summary judgment application failed because the defendant raised multiple triable issues (disputed factual account of meetings over settlement, estoppel issues and whether a partnership existed) which could not be resolved on...

Citation
BA-22C-11-05/2020 (Mahkamah Tinggi)
Parties
Plaintiff: Dynaciate Engineering Sdn. Bhd.; Defendant: Punj Lloyd Sdn. Bhd.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
1 October 2020
Case Number
BA-22C-11-05/2020 (Mahkamah Tinggi)
Procedural Posture
Civil Suit (high Court) / Interlocutory Applications: Preliminary Objection, Application to Stay and Refer to Arbitration, and Summary Judgment
Outcome
Plaintiff's preliminary objection dismissed; defendant's application to stay proceedings and refer parties to arbitration allowed; plaintiff's summary judgment application refused.
Legal Topics
Stay to Arbitration Under S10 Arbitration Act 2005, Formation and Incorporation of Arbitration Clause, Effect of Taking Steps in Court on Arbitration Rights, Summary Judgment Under Order 14 Rules of Court 2012, Partnership Liability Under Partnership Act 1961, Registration Consequences Under Registration of Businesses Act 1956
Source Language
Malay/English
Arbitration Contract Law Civil Procedure Partnership Law Statutory Registration Stay to Arbitration Under S10 Arbitration Act 2005 Formation and Incorporation of Arbitration Clause Effect of Taking Steps in Court on Arbitration Rights +3 more

Case Brief

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Parties

Dynaciate Engineering Sdn. Bhd.

Plaintiff

Punj Lloyd Sdn. Bhd.

Defendant

Procedural Posture

Civil Suit (high Court) / Interlocutory Applications: Preliminary Objection, Application to Stay and Refer to Arbitration, and Summary Judgment

Legal Issues

  1. 1 Whether defendant had taken a 'step' in proceedings within s10(1) Arbitration Act 2005 such as to bar a stay application
  2. 2 Whether General Conditions 30.2 and 30.7 constituted an arbitration agreement between plaintiff and defendant
  3. 3 Whether the arbitration agreement was null, void, inoperative or incapable of performance

Ratio Decidendi

The court held that (1) the defendant's procedural acts did not amount to 'steps' under s10(1) Arbitration Act 2005 because Order 18 r 2(2) Rules of Court 2012 rendered those acts permissible and they were taken to resist a summary judgment application (not to submit to court jurisdiction); (2) General Conditions 30.2 and 30.7 were incorporated into the purchase orders and therefore formed a valid, operative arbitration agreement covering the dispute; and (3) the summary judgment application failed because the defendant raised multiple triable issues (disputed factual account of meetings over settlement, estoppel issues and whether a partnership existed) which could not be resolved on...

Court Disposition

Plaintiff's preliminary objection dismissed; defendant's application to stay proceedings and refer parties to arbitration allowed; plaintiff's summary judgment application refused.

Orders

  • Plaintiff's preliminary objection dismissed with costs to defendant
  • Application to stay proceedings and refer parties to arbitration (court enclosure no.7) allowed with costs to defendant