GRANSTEP DEVELOPMENT SDN BHD TAN CHONG HENG CONSTRUCTION SDN BHD

GRANSTEP DEVELOPMENT SDN BHD TAN CHONG HENG CONSTRUCTION SDN BHD

The Court affirmed the High Court: an adjudication does not commence until an adjudicator is appointed so the first notice/claim did not create a pre-existing adjudication requiring formal withdrawal; AIAC Adjudication Rules do not have statutory force to invalidate the adjudicator's appointment; the second payment...

Source-derived case information.

Citation
B-02(C)(A)-1599-08/2021 (Mahkamah Rayuan)
Parties
Appellant: Granstep Development Sdn Bhd; Respondent: Tan Chong Heng Construction Sdn Bhd
Court
C
Jurisdiction
Malaysia
Judgment Date
18 October 2022
Case Number
B-02(C)(A)-1599-08/2021 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (construction Payment/adjudication) / Court of Appeal Judgment
Outcome
All three appeals dismissed; High Court decisions affirmed
Legal Topics
Jurisdiction of Adjudicator, Setting Aside Adjudication Award (s15 Cipaa), Stay of Enforcement (s16 Cipaa), Enforcement of Adjudication Award (s24 Cipaa), Withdrawal and Supersession of Payment Claims (s17 Cipaa), Validity/force of AIAC Adjudication Rules
Construction Law Adjudication (cipaa) Arbitration Law Civil Procedure Insolvency/company Law Jurisdiction of Adjudicator Setting Aside Adjudication Award (s15 Cipaa) Stay of Enforcement (s16 Cipaa) +3 more

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Parties

Granstep Development Sdn Bhd

Appellant

Tan Chong Heng Construction Sdn Bhd

Respondent

Procedural Posture

Civil Appeal (construction Payment/adjudication) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether an adjudication is commenced by service of notice of adjudication or only upon appointment of an adjudicator
  2. 2 Whether the claimant was required to withdraw the first adjudication under s17 CIPAA before commencing a second adjudication
  3. 3 Whether non-registration under AIAC Adjudication Rules vitiates adjudicator's jurisdiction

Ratio Decidendi

The Court affirmed the High Court: an adjudication does not commence until an adjudicator is appointed so the first notice/claim did not create a pre-existing adjudication requiring formal withdrawal; AIAC Adjudication Rules do not have statutory force to invalidate the adjudicator's appointment; the second payment claim validly superseded the first and Granstep was not prejudiced; therefore the adjudicator had jurisdiction, the setting aside and stay applications lacked merit, and the enforcement order was properly granted.

Court Disposition

All three appeals dismissed; High Court decisions affirmed

Orders

  • Appeals B-02(C)(A)-1597-1598-1599 dismissed
  • High Court orders in OS Nos. BA-24C-11-04/2021, BA-24C-12-04/2021 and BA-24C-13-04/2021 affirmed