GRANSTEP DEVELOPMENT SDN BHD Tan Chong Heng Construction Sdn Bhd

GRANSTEP DEVELOPMENT SDN BHD Tan Chong Heng Construction Sdn Bhd

The Court of Appeal held that the adjudicator had jurisdiction to determine the second payment claim because an adjudication only commences upon appointment of an adjudicator; the first notice without appointment did not constitute an adjudication requiring formal withdrawal under s17 CIPAA; AIAC Adjudication Rules do not create statutory jurisdictional preconditions; there was no breach of natural justice warranting setting aside; enforcement was properly ordered and no stay was justified; consequently all three appeals were dismissed and the High Court orders were affirmed with costs awarded to the respondent.

Citation
B-02(C)(A)-1597-08/2021 (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)-1597-08/2021 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (court of Appeal) / Judgment on Appeals From High Court Orders Affirming Adjudication Decision and Enforcement Proceedings
Outcome
All three appeals dismissed; High Court decisions dated 06.08.2021 affirmed
Legal Topics
Setting Aside Adjudication Award, Enforcement of Adjudication Award, Stay of Enforcement Pending Arbitration, Jurisdiction of Adjudicator, Withdrawal of Adjudication, AIAC Procedural Rules Vs Statute, Natural Justice, CIPAA Statutory Interpretation
Source Language
Malay/English
Construction Law Adjudication Arbitration Civil Procedure Company/insolvency (contextual) Setting Aside Adjudication Award Enforcement of Adjudication Award Stay of Enforcement Pending Arbitration +5 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 14 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Granstep Development Sdn Bhd

Appellant

Tan Chong Heng Construction Sdn Bhd

Respondent

Procedural Posture

Civil Appeal (court of Appeal) / Judgment on Appeals From High Court Orders Affirming Adjudication Decision and Enforcement Proceedings

Legal Issues

  1. 1 Whether adjudication proceedings commence upon service of a notice of adjudication or only upon appointment of an adjudicator
  2. 2 Whether a later payment claim can supersede an earlier payment claim and whether the claimant was obliged to withdraw the earlier adjudication
  3. 3 Whether registration under AIAC Adjudication Rules is a jurisdictional prerequisite

Ratio Decidendi

The Court of Appeal held that the adjudicator had jurisdiction to determine the second payment claim because an adjudication only commences upon appointment of an adjudicator; the first notice without appointment did not constitute an adjudication requiring formal withdrawal under s17 CIPAA; AIAC Adjudication Rules do not create statutory jurisdictional preconditions; there was no breach of natural justice warranting setting aside; enforcement was properly ordered and no stay was justified; consequently all three appeals were dismissed and the High Court orders were affirmed with costs awarded to the respondent.

Court Disposition

All three appeals dismissed; High Court decisions dated 06.08.2021 affirmed

Orders

  • Appeals No. B-02(C)(A)-1597-1599-08/2021 dismissed
  • High Court orders dated 06.08.2021 (OS No. BA-24C-11-04/2021 dismissed; OS No. BA-24C-12-04/2021 dismissed; OS No. BA-24C-13-04/2021 enforcement allowed) affirmed