JBC FOODS LIMITED 1. ) CHEONG TENG TENG 2. ) LIEW FUH HAO

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
Arbitration Law Civil Procedure Private International Law Contract Law Seat of Arbitration Forum Non Conveniens Jurisdiction Stay of Proceedings +2 more

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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

  1. 1 Whether the Malaysian High Court has jurisdiction to hear and determine the dispute despite an agreement to arbitrate in Hong Kong
  2. 2 Whether the proceedings should be stayed and referred to arbitration under section 10 Arbitration Act 2005
  3. 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.