JBC FOODS LIMITED 1. ) CHEONG TENG TENG 2. ) LIEW FUH HAO
The court held that the parties' clear agreement to arbitrate in Hong Kong and to apply Hong Kong rules and law makes Hong Kong the juridical seat; consequently supervisory jurisdiction lies with the courts at that seat and the Malaysian High Court at Temerloh lacks jurisdiction to adjudicate the substantive...
Source-derived case information.
- Citation
- CB-22NCC-1-05/2023 (Mahkamah Tinggi)
- Parties
- Plaintiff: JBC FOODS LIMITED; Defendant: Cheong Teng Teng (Berniaga dalam nama dan gaya F H Liew Enterprise); Defendant: Liew Fuh Hao
- Court
- High Court
- Jurisdiction
- Malaysia
- Judgment Date
- 19 October 2023
- Case Number
- CB-22NCC-1-05/2023 (Mahkamah Tinggi)
- Procedural Posture
- Civil (stay / Arbitration Jurisdiction) / Decision on Jurisdiction and Stay Application Under Section 10 Arbitration Act 2005
- Outcome
- Court declined to exercise jurisdiction to hear and determine the substantive dispute in Temerloh; the agreed seat in Hong Kong must be respected and supervisory jurisdiction rests with Hong Kong courts.
- Legal Topics
- Seat of Arbitration, Forum Non Conveniens, Jurisdiction, Stay of Proceedings, Arbitration Clause Enforcement, Choice of Law
Source-derived case record
Summary, issues, holding and outcome
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Parties
JBC FOODS LIMITED
Plaintiff
Cheong Teng Teng (Berniaga dalam nama dan gaya F H Liew Enterprise)
Defendant
Liew Fuh Hao
Defendant
Procedural Posture
Civil (stay / Arbitration Jurisdiction) / Decision on Jurisdiction and Stay Application Under Section 10 Arbitration Act 2005
Legal Issues
- 1 Whether the Malaysian High Court has jurisdiction to hear and determine the dispute despite an agreement to arbitrate in Hong Kong
- 2 Whether the proceedings should be stayed and referred to arbitration under section 10 Arbitration Act 2005
- 3 Whether the seat of arbitration (Hong Kong) confers exclusive supervisory jurisdiction on Hong Kong courts under the relevant arbitration law
Ratio Decidendi
The court held that the parties' clear agreement to arbitrate in Hong Kong and to apply Hong Kong rules and law makes Hong Kong the juridical seat; consequently supervisory jurisdiction lies with the courts at that seat and the Malaysian High Court at Temerloh lacks jurisdiction to adjudicate the substantive arbitration matter and must respect the parties' agreed seat by staying proceedings and referring the dispute to arbitration in Hong Kong.
Court Disposition
Court declined to exercise jurisdiction to hear and determine the substantive dispute in Temerloh; the agreed seat in Hong Kong must be respected and supervisory jurisdiction rests with Hong Kong courts.
Orders
- Proceedings before the High Court at Temerloh are stayed pending arbitration in Hong Kong.
- Parties are to refer the dispute to arbitration in Hong Kong under the Hong Kong International Arbitration Centre (HKIAC) administered rules as agreed in the contract.
Full Case Text
Judgment text and source record
1 paragraphs
CB-22NCC-1-05/2023 Kand. 40 24/11/2023 16:03:01 DALAM MAHKAMAH TINGGI MALAYA DI TEMERLOH DALAM NEGERI PAHANG DARUL MAKMUR GUAMAN SIVIL NO: CB-22NCC-1-05/2023 ANTARA JBC FOODS LIMITED … PLAINTIF DAN 1. CHEONG TENG TENG (NO. K/P: 851218-14-6228) [Berniaga dalam nama dan gaya F H Liew Enterprise No. Berdaftar 201103129558 (CT0007943-A)] 2. LIEW FUH HAO (NO. K/P: 850320-14-5235) … DEFENDAN- DEFENDAN ALASAN PENGHAKIMAN Pendahuluan [1] Defendan-Defendan telah membuat permohonan di bawah seksyen 10 Akta Timbang Tara 2005 di baca bersama dengan A. 69 k 10 Kaedah-kaedah Mahkamah (KKM) 2012 dan A. 92 k 4 KKM 1 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal 2012 untuk menggantung prosiding yang melibatkan Plaintif dan Defendan-Defendan bagi merujuk perkara pertikaian di antara mereka kepada timbang tara. [2] Semasa pendengaran permohonan tersebut telah ditimbulkan isu oleh Mahkamah ini sama ada Mahkamah ini mempunyai bidang kuasa untuk mendengar permohonan tersebut bagi memutuskan pertikaian di antara Plaintif dan Defendan-Defendan. Ia tidak dibangkitkan oleh Defendan-Defendan seperti yang diperuntukkan di bawah A. 28 k 3B KKM 2012 yang menyatakan seperti berikut: “3B. Pertikaian bidang kuasa (A. 28 k. 3B) (1) Seorang defendan yang ingin mempertikaikan bidang kuasa Mahkamah dalam prosiding atas sebab apa-apa ketidakteraturan dalam saman pemula atau penyampaian saman pemula itu atau dalam mana-mana perintah yang memberikan kebenaran untuk menyampaikan saman pemula di luar bidang kuasa atau melanjutkan kesahan saman pemula bagi maksud penyampaian atau apa-apa alasan lain hendaklah, dalam dua puluh satu hari selepas penyampaian saman pemula dan afidavit sokongan ke atasnya, memohon kepada Mahkamah untuk- (a) suatu perintah yang mengetepikan saman pemula atau penyampaian saman pemula ke atasnya; (b) suatu perintah yang mengisytiharkan bahawa saman pemula tidak disampaikan kepadanya dengan sempurna; (c) pembatalan apa-apa perintah yang memberikan kebenaran untuk menyampaikan saman pemula ke atasnya di luar bidang kuasa; (d) pembatalan apa-apa perintah yang melanjutkan kesahan saman pemula bagi maksud penyampaian; 2 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (e) perlindungan atau pelepasan apa-apa harta defendan yang disita atau diugut dengan penyitaan dalam prosiding; (f) pembatalan mana-mana perintah yang menghalang apa-apa urusan dengan apa-apa harta defendan; (g) suatu pengisytiharan bahawa dalam hal keadaan Mahkamah tidak ada bidang kuasa ke atas defendan berkenaan dengan hal perkara tuntutan atau relief atau remedi yang diminta dalam tindakan itu; atau (h) apa-apa relief lain sebagaimana yang sesuai. (2) Seorang defendan yang ingin menghujahkan bahawa Mahkamah tidak sepatutnya ada bidang kuasa terhadap tindakan bahawa Malaysia bukanlah forum yang sesuai untuk pertikaian hendaklah, dalam dua puluh satu hari selepas penyampaian saman pemula dan afidavit sokongan ke atasnya, memohon kepada Mahkamah untuk suatu perintah menggantungkan prosiding. (3) Suatu permohonan di bawah perenggan (1) atau (2) hendaklah dibuat melalui suatu notis permohonan yang disokong dengan suatu afidavit yang menentusahkan fakta yang ke atasnya permohonan itu diasaskan dan suatu salinan afidavit hendaklah disampaikan dengan notis permohonan. (4) Pada pendengaran suatu permohonan di bawah perenggan (1) atau (2), Mahkamah boleh membuat apa-apa perintah sebagaimana yang difikirkannya patut dan boleh memberikan apa-apa arahan bagi penyelesaian permohonan itu sebagaimana yang sesuai, termasuklah arahan untuk perbicaraan permohonan itu sebagai suatu isu permulaan.” [3] Ia juga tidak dibangkitkan dalam affidavit Defendan-Defendan berkenaan dengan bidang kuasa Mahkamah seperti yang dilakukan dalam kes Pauline Chai Siew Phin v Khoo Kay Peng [2014] 8 CLJ 3 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal 571 apabila Mahkamah Rayuan telah menyatakan bahawa bantahan kepada bidang kuasa Mahkamah boleh diteliti melalui affidavit yang difailkan dan tidak semestinya hanya berpandukan kepada A. 28 k 3B KKM 2012. Ini dinyatakan oleh Mahkamah Rayuan seperti berikut: “[41] But before we elaborate those disputes, we should make known our view that we, with respect, disagree with the contention of the learned counsel for the husband that the wife had submitted to the Malaysian jurisdiction by filing her application only pursuant to O. 28 r. 3B(2) Rules of Court 2012 which reads as follows: A Defendant who wishes to contend that the Court should not assume jurisdiction over the action on the ground that Malaysia is not the proper forum for the dispute shall, within twenty one days after the service of the originating summons and supporting affidavit or affidavits on him, apply to the Court for an order staying the proceedings. It is learned counsel's contention that the application should have been filed pursuant also to O. 28 r. 3B(1) Rules of Court 2012 which states as follows: A Defendant who wishes to dispute the jurisdiction of the Court in the proceedings by reason of any irregularity in the originating summons or service thereof or in any order giving leave to serve the originating summons for the purpose of service or an any ground shall, within twenty one days after the service of the originating summons and supporting affidavit or affidavits on him apply to the Court for: (a) An Order setting aside the originating summons. In view of this omission, it is submitted that the wife by not challenging jurisdiction as provided in O. 28 r. 3B(1) had submitted to it and the only issue left for determination is one of appropriate forum. 4 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal [42] With respect and even if a wrong rule had been used, the wife should not be penalised. Her intention not to submit to jurisdiction is made crystal clear in her affidavit dated 2 May 2013 where she stated as follow: I wish to make clear that I am not to be understood as having submitted to the jurisdiction of this Honourable Court in making the said application (paragraph 4). I contend that it is the English Courts which have jurisdiction to determine this matter and is the more appropriate forum to decide the issue of jurisdiction (paragraph 5). With such clear declaration by the wife, it would not be proper for us to ignore it. In any event, O. 2 of the Rules of Court 2012 comes into play to save the day so to speak and in our view rightly so as the courts exist to ensure substantive justice is done. Further we cannot see how the husband is prejudiced or taken by surprise by the stand of the wife.” [4] Plaintif dan Defendan-Defendan telah diberikan peluang untuk mengemukakan hujahan masing-masing berkenaan isu bidang kuasa Mahkamah ini bagi mendengar permohonan dan melupuskan kes ini. Pihak Plaintif dan Defendan-Defendan telah sudi untuk mengemukakan hujahan masing-masing berkenaan hal ini bagi membantu Mahkamah untuk memutuskan persoalan bidang kuasa Mahkamah untuk mendengar permohonan ini. [5] Hal ini berbangkit apabila dalam perjanjian di antara Plaintif dan Defendan-Defendan yang menjadi asas kepada tindakan ini terdapat satu terma berkaitan dengan bidang kuasa Mahkamah yang boleh memutuskan pertikaian pihak-pihak. Ia adalah seperti berikut: 5 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal “6. Law and Arbitration This Agreement shall be governed in all respects by the laws of Hong Kong. Any dispute arising out of or in connection with this Agreement which is not resolved by the parties, including any question regarding its existence, validity, breach or termination, shall be resolved by arbitration In Hong Kong under the Hong Kong International Arbitration Centre Administered Arbitration Rules in force when the notice of arbitration is submitted. There shall be three arbitrators, and the arbitration proceedings shall be conducted in English.” Dan “6. Law and Arbitration This Agreement shall be governed in all respects by the laws of Hong Kong. Any dispute arising out of or in connection with this Agreement which is not resolved by the parties, including any question regarding its existence, validity, breach or termination, shall be resolved by arbitration In Hong Kong under the Hong Kong International Arbitration Centre Administered Arbitration Rules in force when the notice of arbitration is submitted. There shall be three arbitrators, and the arbitration proceedings shall be conducted in English. Because a remedy at law may be inadequate, any party may seek an injunction from any court of competent jurisdiction to 6 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal restrain any violation or threatened violation of this Agreement or to specifically enforce any provision of this Agreement.” [6] Mahkamah ini berpendapat isu bidang kuasa Mahkamah wajar diputuskan bagi mengelakkan daripada sebarang ketidakaturan dan ketidakesahan sebarang perintah yang diberi kesan daripada pendengaran permohonan ini. Hujahan pihak-pihak berkenaan isu bidang kuasa [7] Peguam Defendan-Defendan dalam hujahannya menyatakan bahawa mahkamah ini tidak mempunyai bidang kuasa untuk mendengar permohonan ini. Rujukan telah dibuat kepada kes Kraken Services Ltd & Anor v. Q Life And Medical Insurance Company Asia Region & Anor [2021] 1 LNS 2602 dan menyatakan bahawa bidang kuasa yang sepatutnya adalah di bawah undang-undang Hong Kong. [8] Sebaliknya peguam Plaintif berhujah bahawa mahkamah ini mempunyai bidang kuasa dengan permohonan ini di bawah seksyen 23 Akta Mahkamah Kehakiman 1964. Analisa [9] Sebelum sesuatu kes didengar oleh Mahkamah adalah penting untuk memastikan bahawa Mahkamah yang mendengar kes tersebut mempunyai bidang kuasa. Dalam konteks ini wajar Mahkamah merujuk 7 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal kepada penyataan Hakim Thomson dalam kes Lee Lee Cheng (F) v Seow Peng Kwang [1960] 1 MLJ 1 yang menyatakan seperti berikut: “This leads to the view that in the Ordinance there is a distinction between the jurisdiction of a Court and its powers, and this suggests that the word "jurisdiction" is used to denote the types of subject matter which the Court may deal with and in relation to which it may exercise its powers. It cannot exercise its powers in matters over which, by reason of their nature or by reason of extra-territoriality, it has no jurisdiction. On the other hand, in dealing with matters over which it has jurisdiction, it cannot exceed its powers.” [10] Oleh itu penentuan sama ada Mahkamah ini mempunyai bidang kuasa untuk mendengar sesuatu kes adalah asas utama yang perlu diputuskan sebelum melanjutkan proses pendengaran dan perbicaraan dalam sesuatu kes. [11] Dalam konteks Mahkamah Tinggi adalah jelas bahawa peruntukan atau bidang kuasa boleh dikategorikan kepada bidang kuasa asal, bidang kuasa rayuan dan bidang kuasa sedia ada. Perkara 121 Perlembagaan Persekutuan telah memperuntukkan berkenaan dengan kewujudan Mahkamah Tinggi seperti berikut: “(1) There shall be two High Courts of co-ordinate jurisdiction and status, namely— (a) one in the States of Malaya, which shall be known as the High Court in Malaya and shall have its principal registry at such place in the States of Malaya as the Yang di-Pertuan Agong may determine; and 8 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (b) one in the States of Sabah and Sarawak, which shall be known as the High Court in Sabah and Sarawak and shall have its principal registry at such place in the States of Sabah and Sarawak as the Yang di-Pertuan Agong may determine; (c) (Repealed) and such inferior courts as may be provided by federal law and the High Courts and inferior courts shall have such jurisdiction and powers as may be conferred by or under federal law. (1A) The courts referred to in Clause (1) shall have no jurisdiction in respect of any matter within the jurisdiction of the Syariah courts. (1B) There shall be a court which shall be known as the Mahkamah Rayuan (Court of Appeal) and shall have its principal registry at such place as the Yang di-Pertuan Agong may determine, and the Court of Appeal shall have the following jurisdiction, that is to say— (a) jurisdiction to determine appeals from decisions of a High Court or a judge thereof (except decisions of a High Court given by a registrar or other officer of the Court and appealable under federal law to a judge of the Court); and (b) such other jurisdiction as may be conferred by or under federal law. (2) There shall be a court which shall be known as the Mahkamah Persekutuan (Federal Court) and shall have its principal registry at such place as the Yang di-Pertuan Agong may determine, and the Federal Court shall have the following jurisdiction, that is to say— (a) jurisdiction to determine appeals from decisions of the Court of Appeal, of the High Court or a judge thereof; 9 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (b) such original or consultative jurisdiction as is specified in Articles 128 and 130; and (c) such other jurisdiction as may be conferred by or under federal law. (3) Subject to any limitations imposed by or under federal law, any order, decree, judgment or process of the courts referred to in Clause (1) or of any judge thereof shall (so far as its nature permits) have full force and effect according to its tenor throughout the Federation, and may be executed or enforced in any part of the Federation accordingly; and federal law may provide for courts in one part of the Federation or their officers to act in aid of courts in another part. (4) In determining where the principal registry of the High Court in Sabah and Sarawak is to be, the Yang di-Pertuan Agong shall act on the advice of the Prime Minister, who shall consult the Chief Ministers of the States of Sabah and Sarawak and the Chief Judge of the High Court.” [12] Seksyen 23 Akta Mahkamah Kehakiman 1964 memperuntukkan bidang kuasa asal Mahkamah Tinggi dengan memperuntukkan seperti berikut: “23 Civil jurisdiction - general (1) Subject to the limitations contained in Article 128 of the Constitution the High Court shall have jurisdiction to try all civil proceedings where - (a) the cause of action arose; (b) the defendant or one of several defendants resides or has his place of business; 10 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (c) the facts on which the proceedings are based exist or are alleged to have occurred; or (d) any land the ownership of which is disputed is situated, within the local jurisdiction of the Court and notwithstanding anything contained in this section in any case where all parties consent in writing within the local jurisdiction of the other High Court. (2) Without prejudice to the generality of subsection (1), the High Court shall have such jurisdiction as was vested in it immediately prior to Malaysia Day and such other jurisdiction as may be vested in it by any written law in force within its local jurisdiction.” [13] Begitu juga seksyen 24 Akta Mahkamah Kehakiman 1964 yang memperuntukkan seperti berikut: “24 Civil jurisdiction - specific Without prejudice to the generality of section 23 the civil jurisdiction of the High Court shall include - (a) jurisdiction under any written law relating to divorce and matrimonial causes; (b) the same jurisdiction and authority in relation to matters of admiralty as is had by the High Court of Justice in England under the United Kingdom Supreme Court Act 1981; (c) jurisdiction under any written law relating to bankruptcy or to companies; (d) jurisdiction to appoint and control guardians of infants and generally over the person and property of infants; 11 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (e) jurisdiction to appoint and control guardians and keepers of the person and estates of idiots, mentally disordered persons and persons of unsound mind; and (f) jurisdiction to grant probates of wills and testaments and letters of administration of the estates of deceased persons leaving property within the territorial jurisdiction of the Court and to alter or revoke such grants.” [14] Adalah menjadi prinsip undang-undang yang mantap bahawa sebarang peruntukan yang terdapat dalam mana-mana perjanjian di antara pihak-pihak yang memperuntukkan bidang kuasa Mahkamah untuk memutuskan suatu pertikaian tidak menyekat budi bicara Mahkamah untuk menentukan dimanakah pertikaian tersebut boleh diputuskan. Ini dapat dilihat dalam kes Globus Shipping & Trading Co (PTE) Ltd v Taiping Textiles Berhad [1976] 2 MLJ 154 di mana Mahkamah Persekutuan setelah meneliti keputusan kes-kes yang berkaitan dengan isu tersebut telah membuat kesimpulan seperti berikut: “It would seem abundantly clear from the authorities that where a cause of action in respect of any dispute in relation to a contract arises and is therefore properly within its jurisdiction, the court has a discretion whether or not to adjudicate upon theclaim in the action even where the parties have agreed to refer such dispute to a foreign court, and that the question of jurisdiction is quite separate from the question of the proper law of the contract to be applied. From the reasons given by the learned judgein allowing the appeal in the present case it was clear that he had exercised his discretion in accordance with the well-established and recognized principles. We were therefore satisfied that he was right in allowing the appeal.” 12 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal [15] Dalam erti kata lain sebarang terma yang memperuntukkan bahawa pertikaian di antara pihak-pihak perlu dirujuk kepada suatu bidang kuasa Mahkamah tidak mengikat Mahkamah. Ini telah dinyatakan oleh Lord Dening dalam kes The Fehmarn, [1958] 1 All ER 333 seperti berikut: “The next question is whether the action ought to be stayed because of the provision in the bill of lading that all disputes are to be judged by the Russian courts. I do not regard this provision as equal to an arbitration clause, but I do say that the English courts are in charge of their own proceedings: and one of the rules which they apply is that a stipulation that all disputes should be judged by the tribunals of a particular country is not absolutely binding. Such a stipulation is a matter to which the courts of this country will pay much regard and to which they will normally give effect, but it is subject to the overriding principle that no one by his private stipulation can oust these courts of their jurisdiction in a matter that properly belongs to them.” [16] Hal yang sama turut dinyatakan oleh Mahkamah Agong dalam kes American Express Bank Ltd v Mohamed Toufic Al-Ozeir & Anor [1995] 1 MLJ 160 yang memutuskan seperti berikut: “We considered the relevant factors in this instant appeal. A very glaring factor in the instant appeal was the foreign jurisdiction clauses in both the said agreements as set out above by which the bank customers had chosen Singapore courts for the litigation, ie expressly, in other words, the bank customers had submitted to the jurisdiction of the chosen Singapore courts; and further, both parties had chosen Singapore law as the law of their choice for the litigation, prospective or otherwise. 13 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal It would be clear that, notwithstanding such clauses, a Malaysian court, ie High Court below, could not be precluded simpliciter thereby from exercising the discretion, according to the doctrine of forum non conveniens, as to whether to hear the instant case or not, please see the Federal Court case of Globus Shipping and Trading Co (Pte) Ltd v Taiping Textiles Bhd [1976] 2 MLJ 154. That said, such clauses would in any event, in some significant way, militate against any argument for the bank customers, ie the plaintiffs, that the Malaysian court was the most appropriate forum. It is desirable, in passing, to point out that had there been no choice of the Singapore courts in the said clauses, but only the choice of Singapore law, such choice of Singapore law agreed to by both parties would not have amounted to a submission to the jurisdiction of the Singapore courts.” [17] Ini bermakna sebarang klausa yang terdapat dalam perjanjian di antara Plaintif dan Defendan-Defendan dalam kes ini tidak menghalang Mahkamah ini untuk menggunakan budi bicara bagi mendengar permohonan ini walaupun terdapat persetujuan bahawa perjanjian tersebut akan mengikut undang-undang Hong Kong. Pada pendapat Mahkamah ini bagi menentukan sama ada Mahkamah wajar menggunakan budi bicara untuk mendengar kes ini atau sebaliknya Mahkamah ini perlu meneliti kepada jenis permohonan yang dibuat dalam kes ini dan isu undang-undang yang dibangkitkan oleh kedua- dua pihak. Ini bagi menentukan sama ada wajar atau tidak walaupun terdapat persetujuan kes ini didengar di Hong Kong ia didengar di dalam bidang kuasa Mahkamah ini. [18] Penelitian kepada KM15 dan klausa 6 dalam perjanjian antara Plaintif dan Defendan didapati terdapat isu berkaitan dengan timbang tara. Ini bermakna Mahkamah perlu mempertimbangkan hal yang 14 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal berkaitan dengan timbang tara ini dan hubung kaitnya dengan bidang kuasa Mahkamah. Bidang kuasa Mahkamah dan hubung kait dengan undang-undang timbang tara [19] Dalam kes ini permohonan yang dikemukakan oleh pihak Plaintif adalah berkaitan dengan seksyen 10 Akta Timbang Tara 2005 yang menyatakan seperti berikut: “10 Perjanjian timbang tara dan tuntutan substantif di hadapan Mahkamah (1) Mahkamah yang di hadapannya prosiding dibawa berkenaan dengan suatu perkara yang menjadi hal suatu perjanjian timbang tara hendaklah, jika suatu pihak membuat permohonan sebelum mengambil apaapa langkah lain dalam prosiding itu, menggantung prosiding itu dan merujukkan pihak-pihak itu kepada timbang tara melainkan jika mahkamah itu mendapati bahawa perjanjian itu adalah batal dan tidak sah, tidak berkuat kuasa atau tidak dapat dilaksanakan. (2) Mahkamah, dalam membenarkan suatu penggantungan prosiding menurut subseksyen (1), boleh mengenakan apa- apa syarat sebagaimana yang difikirkannya patut. (2A) Jika prosiding admiralti digantung menurut subseksyen (1), mahkamah yang membenarkan penggantungan itu boleh, jika dalam prosiding mahkamah itu harta pernah ditahan atau ikat jamin atau jaminan lain telah diberikan untuk mengelakkan atau mendapatkan pelepasan daripada tahanan- 15 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (a) memerintahkan supaya harta yang ditahan itu dipegang sebagai jaminan bagi penyelesaian apa-apa award yang diberikan dalam timbang tara berkenaan dengan pertikaian itu; atau (b) memerintahkan supaya penggantungan prosiding itu adalah dengan syarat pengadaan jaminan yang setara bagi penyelesaian apa-apa award sedemikian. (2B) Tertakluk kepada apa-apa kaedah-kaedah mahkamah dan kepada apa-apa ubah suaian yang perlu, undang-undang dan amalan yang sama hendaklah terpakai berhubungan dengan harta yang dipegang menurut suatu perintah di bawah subseksyen (2A) sebagaimana akan terpakai jika ia ditahan bagi maksud prosiding dalam mahkamah yang membuat perintah itu. (2C) Bagi maksud seksyen ini, prosiding admiralti merujuk kepada prosiding admiralti di bawah Aturan 70 Kaedah- Kaedah Mahkamah Tinggi 1980 [PU(A) 50/1980] dan prosiding yang dimulakan menurut perenggan 24(b) Akta Mahkamah Kehakiman 1964 [Akta 91]. (3) Jika prosiding yang disebut dalam subseksyen (1) telah dibawa, prosiding timbang tara boleh dimulakan atau diteruskan, dan suatu award boleh dibuat, sementara isu itu belum selesai di hadapan mahkamah. (4) Seksyen ini hendaklah juga terpakai berkenaan dengan timbang tara antarabangsa, sekiranya tempat timbang tara bukan di Malaysia.” [20] Ia membawa maksud Mahkamah ini perlu meneliti peruntukan di bawah Akta Timbang Tara 2005 dan hubung kaitnya bidang kuasa Mahkamah ini untuk mendengar perkara berkaitan dengan timbang tara. Ia tidak boleh dipisahkan di antara bidang kuasa kuasa dan pemakaian Akta Timbang Tara 2005 dalam kes ini. Ini adalah 16 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal disebabkan sebarang perintah yang diberikan berkaitan dengan Akta Timbang Tara 2005 itu adalah berkaitan dengan sama ada Mahkamah Tinggi mempunyai bidang kuasa untuk menyelia prosiding yang berkaitan dengan timbang tara di bawah Akta tersebut. Adakah Mahkamah Tinggi yang tidak mempunyai bidang kuasa untuk menyelia satu prosiding timbang tara seperti dalam kes ini yang menjelaskan bahawa timbang tara dilakukan di dalam mengikut undang-undang di Hong Kong. [21] Penelitian kepada Akta Timbang Tara 2005 telah menyatakan bahawa perkataan mahkamah adalah merujuk kepada: "Mahkamah Tinggi" ertinya Mahkamah Tinggi di Malaya dan Mahkamah Tinggi di Sabah dan Sarawak atau mana-mana satu daripadanya, mengikut kehendak keadaan.” [22] Ia mempunyai kaitan dengan sama ada tempat timbang tara akan dijalankan adakah ia berada dalam bidang kuasa Mahkamah Tinggi Malaya atau di tempat yang lain. Ini adalah bagi membolehkan pematuhan kepada seksyen 22 Akta Timbang Tara 2005. [23] Dalam kes ini persetujuan untuk merujuk pertikaian Plaintif dan Defendan kepada timbang tara di Hong Kong pada hemat mahkamah adalah termasuk dalam perjanjian timbang tara yang terdapat di bawah seksyen 9 Akta Timbang Tara 2005 yang menjadi asas kepada permohonan ini untuk menggunapakai seksyen 10 Akta tersebut supaya prosiding ini ditangguhkan bagi merujuk pertikaian ini kepada 17 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal timbang tara seperti yang dipersetujui dalam perjanjian di antara Plaintif dan Defendan. Seksyen 9 Akta Timbang Tara 2005 menyatakan seperti berikut: “9 Takrif dan bentuk perjanjian timbang tara (1) Dalam Akta ini, "perjanjian timbang tara" ertinya suatu perjanjian oleh pihak-pihak untuk mengemukakan kepada timbang tara semua pertikaian atau pertikaian tertentu yang telah timbul atau yang mungkin timbul antara mereka berkenaan dengan hubungan di sisi undang-undang yang ditetapkan, sama ada kontraktual atau tidak. (2) Suatu perjanjian timbang tara boleh berupa dalam bentuk suatu fasal timbang tara dalam suatu perjanjian atau dalam bentuk suatu perjanjian yang berasingan. (3) Suatu perjanjian timbang tara hendaklah secara bertulis. (4) Suatu perjanjian timbang tara adalah secara bertulis- (a) jika kandungannya direkodkan dalam apa jua bentuk, sama ada atau tidak perjanjian timbang tara atau kontrak itu telah dipersetujui secara lisan, melalui kelakuan, atau dengan cara lain; atau (b) jika perjanjian itu terkandung dalam suatu pertukaran pernyataan tuntutan dan pembelaan yang dalamnya kewujudan suatu perjanjian dikatakan oleh satu pihak dan tidak dinafikan oleh pihak yang satu lagi. (4A) Kehendak suatu perjanjian timbang tara dibuat secara bertulis dipenuhi oleh apa-apa komunikasi elektronik yang dibuat oleh pihak-pihak melalui mesej data jika maklumat yang terkandung dalamnya boleh diakses supaya boleh digunakan untuk rujukan yang berikutnya. 18 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (5) Sebutan dalam suatu perjanjian mengenai suatu dokumen yang mengandungi fasal timbang tara hendaklah menjadi suatu perjanjian timbang tara, dengan syarat bahawa perjanjian itu adalah secara bertulis dan sebutan itu adalah yang sedemikian untuk menjadikan fasal itu sebahagian daripada perjanjian itu. (6) Bagi maksud seksyen ini, "mesej data" ertinya maklumat yang dijana, dihantar, diterima atau disimpan dengan cara elektronik, magnetik, optik atau cara seumpamanya, termasuk, tetapi tidak terhad kepada, pertukaran data elektronik, mel elektronik, telegram, teleks atau salinan teleks.” [24] Dalam konteks ini perjanjian timbang tara tersebut menunjukkan bahawa pihak-pihak bersetuju untuk mengemukakan pertikaian kepada timbang tara di Hong Kong. Ini bermakna timbang tara tersebut dipersetujui akan dijalankan di Hong Kong. Dalam konteks seksyen 22 Akta Timbang Tara 2005 memperuntukkan seperti berikut: “22 Tempat timbang tara (1) Pihak-pihak adalah bebas bersetuju mengenai tempat timbang tara. (2) Jika pihak-pihak gagal bersetuju di bawah subseksyen (1), tempat timbang tara hendaklah ditentukan oleh tribunal timbang tara dengan mengambil kira hal keadaan kes, termasuk kemudahan pihak-pihak. (3) Walau apa pun subseksyen (1) dan (2), tribunal timbang tara boleh, melainkan jika dipersetujui selainnya oleh pihak- pihak, bersidang di mana-mana tempat yang difikirkannya sesuai untuk bermesyuarat sesama anggotanya, untuk 19 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal mendengar saksi, pakar atau pihak-pihak, atau untuk memeriksa barang, harta atau dokumen lain.” [25] Dalam kes ini tempat timbang tara yang telah dipersetujui adalah di Hong Kong seperti yang dinyatakan di bawah seksyen 22 Akta tersebut. Pemakaian seksyen 22 Akta Timbang Tara 2005 berkaitan dengan tempat timbang tara telah dijelaskan dengan menarik oleh Mahkamah Persekutuan dalam kes Masenang Sdn Bhd v. Sabanilam Enterprise Sdn Bhd [2021] 9 CLJ 1 seperti berikut: “The Law Relating To The Juridical Seat In Arbitration Law [106] On what basis is it concluded that the seat of an arbitration also determines the identity of the court enjoying exclusive jurisdiction to supervise and regulate the arbitration? We have considered this issue to some extent above, but elaborate further below. [107] While the definition of the "seat" of an arbitration is set out in s. 22 of the AA, the concept of the juridical "seat" and its relationship to the supervisory jurisdiction of a court in dealing with matters regulating the arbitral proceedings (including challenges to arbitral awards) is not expressly provided for in the AA. It is important to comprehend the law on what constitutes the "juridical seat" and whether, once the seat is specified in the arbitration agreement, the courts at the place of the seat would alone have exclusive jurisdiction over the arbitral proceedings. [108] This issue has to be analysed and established by reference to the concepts and basis of arbitration law, which is international in nature and practice, bearing in mind that the AA is modelled on the UNCITRAL Model Law. In the renowned textbook by Redfern (see para 3.54) it is stated that "the seat of the arbitration is thus intended to be its centre of 20 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal gravity." (Blackaby, Partasides, Redfern and Hunter (eds.), Redfern and Hunter on International Arbitration (5th edn., Oxford)). All else ensues from the seat. The choice of court enjoying regulation of the arbitral proceedings is derived from the seat. It is the court at the seat that enjoys exclusive jurisdiction to supervise and regulate those arbitral proceedings. Ascertaining The Court Enjoying Supervisory Jurisdiction Over An Arbitration - Domestic Or International [109]Section 22 AA statutorily codifies the concept of the seat of jurisdiction in arbitration law in Malaysia. It is premised on the UNCITRAL Model Law and a similar provision is utilised in many other jurisdictions. We have explained in detail above that it encompasses the concepts of determining the applicable curial law as well as ascertaining the court enjoying supervisory jurisdiction over the regulation of the arbitration proceedings, which encompasses interim measures, registration, enforcement and setting aside an award.” [26] Dalam kes Masenang Sdn Bhd v. Sabanilam Enterprise Sdn Bhd (supra) tersebut Mahkamah Persekutuan telah mengaitkan hubung kait bidang kuasa Mahkamah dengan Akta Timbang Tara 2005 dengan menyatakan seperti berikut: “[139] Why, it might be asked is that so? It might well be argued that although choosing a seat for arbitration and correspondingly allocating the court at the seat with exclusive jurisdiction to regulate the arbitral proceedings is an autonomy given to the parties under the AA, territorial jurisdiction is not something which the parties can decide. A court is conferred with territorial jurisdiction over a particular case if the cause of action arises within the geographical territory of a court, the basis for which include the provisions of the CJA and the codified rules of procedure. 21 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal [140] To apply the well-known Latin maxim of generalia specialibus non derogant, a special law prevails over a general law. In any event, arbitration is a completely distinct and disparate dispute resolution process in comparison to the adjudication of civil disputes. The concepts and philosophy of these two modes of dispute resolution are completely different. These two modes are accordingly governed by distinct and separate legislation. As such, in the present context, the AA is the relevant legislation, not the CJA. The two ought not to be conflated. In an arbitration dispute, the cause of action which may be, for example, breach of contract, is determined finally. The civil courts are approached not for the purposes of trying the same cause of action, but purely for the purposes of recognition and to a very narrow extent, the setting aside of the arbitral award. In that sense, the jurisdiction of the civil courts as stipulated in the AA is not engaged as it would be in a normal civil matter. Therefore this takes the cause of action which has merged in the arbitration award out of the scope of the CJA and brings it into the purview of the AA. [141] In this context, it is important to reiterate again that the provisions of the CJA and the RC are general codes that provide the substantive and procedural basis for deciding disputes arising from general civil disputes. These laws do not limit nor affect any special law such as the AA. The AA is a special law codified to govern arbitration proceedings, both domestic and international. It gives effect to the principle of party autonomy by giving the parties the freedom to choose courts under the seat of arbitration that will have supervisory jurisdiction. [142] Therefore special jurisdiction conferred on the court at the seat through the parties' agreement ought not to be limited or affected by legislation relating to the adjudication of civil disputes, domestically or nationally. Party autonomy which comprises the essence of arbitration must be given due cognisance. It follows that the approach of the courts, in keeping with the legislation, should be to uphold the exclusive jurisdiction of the courts of the seat of arbitration, as that is the 22 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal correct applicable law in relation to the regulation and supervision of arbitrations under the AA.” [27] Oleh yang demikian dalam kes ini Mahkamah berpendapat bahawa persetujuan di antara Plaintif dan Defendan-Defendan untuk merujuk pertikaian mereka kepada timbang tara di Hong Kong perlu dihormati. Rujukan kepada undang-undang di Hong Kong mendapati bahawa tatacara timbang tara adalah tertakluk kepada Arbitration Ordinance (Cap. 609) Hong Kong yang memperuntukkan secara komprehensif tatacara timbang tara yang sewajarnya dijadikan rujukan dalam tindakan Plaintif dan Defendan-Defendan sekiranya berlaku pertikaian berkenaan dengan perjanjian tersebut. [28] Mahkamah berpendapat adalah tidak wajar untuk kes ini dikendalikan di bawah bidang kuasa Mahkamah Tinggi Malaya Temerloh disebabkan sudah terang lagi bersuluh ianya wajar dikendalikan di bawah undang-undang Hong Kong. Ianya berbeza sekiranya tiada persetujuan pihak-pihak untuk kes ini dirujuk ke timbang tara di Hong Kong. Mahkamah ini mengambil perhatian bahawa Akta Timbang Tara 2005 adalah terpakai kepada timbang tara yang melibatkan perjanjian timbang tara tempatan dan juga timbang tara antarabangsa yang telah ditakrifkan seperti berikut: "timbang tara antarabangsa" ertinya suatu timbang tara yang- (a) salah satu daripada pihak kepada suatu perjanjian timbang tara, pada masa pembuatan perjanjian itu, mempunyai tempat urusannya di mana-mana Negara selain Malaysia; 23 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (b) salah satu daripada yang berikut terletak dalam mana- mana Negara selain Malaysia tempat pihak-pihak itu mempunyai tempat urusan mereka: (i) tempat timbang tara jika ditentukan dalam, atau menurut, perjanjian timbang tara; (ii) mana-mana tempat di mana sebahagian besar obligasi mana-mana perhubungan perdagangan atau yang lain yang hendaklah dilaksanakan atau tempat yang dengannya hal perkara pertikaian itu mempunyai kaitan yang paling rapat; atau (c) pihak-pihak telah bersetuju dengan nyata bahawa hal perkara perjanjian timbang tara berkaitan dengan lebih daripada satu Negara.” [29] Penelitian kepada Arbitration Ordinance (Cap. 609) Hong Kong mempunyai peruntukan di bawah seksyen 5 seperti berikut: “5. Arbitrations to which this Ordinance applies (1) Subject to subsection (2), this Ordinance applies to an arbitration under an arbitration agreement, whether or not the agreement is entered into in Hong Kong, if the place of arbitration is in Hong Kong. (2) If the place of arbitration is outside Hong Kong, only this Part, sections 20 and 21, Part 3A, sections 45, 60 and 61, Part 10 and sections 103A, 103B, 103C, 103D, 103G and 103H apply to the arbitration. (Amended 7 of 2013 s. 4; 5 of 2017 s. 3) (3) If any other Ordinance provides that this Ordinance applies to an arbitration under that other Ordinance, this Ordinance (other than sections 20(2), (3) and (4), 22(1), 58 and 74(8) and 24 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (9)) applies to an arbitration under that other Ordinance, subject to the following— (a) a reference in article 16(1) of the UNCITRAL Model Law, given effect to by section 34, to any objections with respect to the existence or validity of the arbitration agreement is to be construed as any objections with respect to the application of that other Ordinance to the dispute in question; (b) that other Ordinance is deemed to have expressly provided that, subject to paragraph (c), all the provisions in Schedule 2 apply; and (c) section 2 of Schedule 2 (if applicable) only applies so as to authorize 2 or more arbitral proceedings under the same Ordinance to be consolidated or to be heard at the same time or one immediately after another. (4) Subsection (3) has effect, in relation to an arbitration under any other Ordinance, only in so far as this Ordinance is consistent with— (a) that other Ordinance; and (b) any rules or procedures authorized or recognized by that other Ordinance.” [30] Ia perlu dilihat peruntukan yang sama yang terdapat dalam Akta Timbang Tara 2005 iaitu di seksyen 3 yang menyatakan seperti berikut: “3 Pemakaian bagi timbang tara dan award di Malaysia (1) Akta ini hendaklah terpakai di seluruh Malaysia. (2) Berkenaan dengan suatu timbang tara domestik, jika tempat timbang tara adalah di Malaysia- 25 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal (a) Bahagian I, II dan IV Akta ini hendaklah terpakai; dan (b) Bahagian III Akta ini hendaklah terpakai melainkan jika pihak-pihak bersetuju selainnya secara bertulis. (3) Berkenaan dengan timbang tara antarabangsa, jika tempat timbang tara adalah di Malaysia- (a) Bahagian I, II dan IV Akta ini hendaklah terpakai; dan (b) Bahagian III Akta ini tidak terpakai melainkan jika pihak-pihak bersetuju selainnya secara bertulis. (4) Bagi maksud perenggan (2) (b) dan (3) (b), pihak-pihak kepada suatu timbang tara domestik boleh bersetuju untuk mengecualikan pemakaian Bahagian III Akta ini dan pihak- pihak kepada suatu timbang tara antarabangsa boleh bersetuju untuk memakai Bahagian III Akta ini, secara keseluruhan atau sebahagian.” [31] Penelitian yang terhadap Arbitration Ordinance (Cap. 609) Hong Kong terdapat peruntukan yang sama berkenaan dengan takrifan Mahkamah yang merujuk kepada Mahkamah Tinggi di Hong Kong. Ini dapat dilihat seperti berikut: “Court (原訟法庭) means the Court of First Instance of the High Court” [32] Penelitian kepada Arbitration Ordinance (Cap. 609) Hong Kong dan Akta Timbang Tara 2005 menunjukkan bahawa masing-masing bidang kuasa mempunyai prosedur yang tertentu berkenaan dengan timbang tara dan peranan Mahkamah dalam mengendalikan perkara berkaitan dengan timbang tara adalah tertakluk kepada Mahkamah 26 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal Tinggi di dalam bidang kuasa tersebut. Pihak Plaintif dan Defendan- Defendan bersetuju untuk merujukkan pertikaian mereka kepada Hong Kong International Arbitration Centre Administered Arbitration Rules seperti yang ditakrifkan di bawah seksyen 2 Arbitration Ordinance (Cap. 609) Hong Kong seperti berikut: “HKIAC (香港國際仲裁中心) means the Hong Kong International Arbitration Centre, a company incorporated in Hong Kong under the Companies Ordinance (Cap. 32) as in force at the time of the incorporation and limited by guarantee; (Amended 28 of 2012 ss. 912 & 920)” [33] Oleh itu apabila pihak Plaintif dan Defendan-Defendan bersetuju untuk merujuk kepada undang-undang Hong Kong berkenaan dengan timbang tara adalah lebih wajar agar pertikaian tersebut diputuskan mengikut tata cara prosiding di bawah Arbitration Ordinance (Cap. 609) Hong Kong di bawah penyeliaan Mahkamah Tinggi di Hong Kong dan bukannya di Mahkamah Tinggi Malaya. [34] Oleh itu Mahkamah ini berpendapat berdasarkan kepada penelitian undang-undang timbang tara dan bidang kuasa Mahkamah dalam Akta Mahkamah Kehakiman 1964 Mahkamah ini berpendapat tiada bidang kuasa untuk memutuskan dan mendengar permohonan di KM15 dan memutuskannya. Ia adalah di bawah bidang kuasa pihak yang telah dipersetujui oleh Plaintif dan Defendan dalam perjanjian persetujuan timbang tara yang menjadi sebahagian daripada terma dalam perjanjian di antara Plaintif dan Defendan-Defendan. 27 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal Bertarikh: 24hb. November 2023 (ROSLAN BIN MAT NOR) HAKIM MAHKAMAH TINGGI MALAYA TEMERLOH, PAHANG DARUL MAKMUR PIHAK-PIHAK: Bagi Pihak Plaintif Siew Jun Seng Tetuan Tan Shang Neng Kuala Lumpur Bagi Pihak Defendan-Defendan Marcus Lee dan Ng Soon Kiat Tetuan Marcus Lee Kuala Lumpur 28 S/N S8bgGJzSREKVDioGgq75gg **Note : Serial number will be used to verify the originality of this document via eFILING portal