Multazam Development Sdn Bhd FGV Plantations (MALAYSIA) Sdn. Bhd. (Dahulunya dikenali sebagai FELDA Global Ventures Plantations (Malaysia) Sdn. Bhd.)

Multazam Development Sdn Bhd FGV Plantations (MALAYSIA) Sdn. Bhd. (Dahulunya dikenali sebagai FELDA Global Ventures Plantations (Malaysia) Sdn. Bhd.)

The application for security under section 37(7) Arbitration Act 2005 was dismissed because on balancing prejudice the risk to MDSB of being denied an opportunity to be heard outweighed FGV's risk of non-enforcement; impecuniosity alone does not justify ordering security and FGV had knowledge of MDSB's financial...

Source-derived case information.

Citation
WA-24C(ARB)-28-05/2024 (Mahkamah Tinggi)
Parties
Plaintiff: Multazam Development Sdn Bhd; Defendant: Felda Global Ventures Plantations (M) Sdn Bhd
Court
ARB
Jurisdiction
Malaysia
Judgment Date
29 November 2024
Case Number
WA-24C(ARB)-28-05/2024 (Mahkamah Tinggi)
Procedural Posture
Originating Summons to Set Aside Arbitral Award / Interlocutory Application for Security Under Section 37(7) Arbitration Act 2005
Outcome
Application for security dismissed
Legal Topics
Security for Award, Setting Aside Arbitral Award, Enforcement of Award, Impecuniosity, Stay of Proceedings
Arbitration Civil Procedure Construction Contracts Security for Award Setting Aside Arbitral Award Enforcement of Award Impecuniosity Stay of Proceedings

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Parties

Multazam Development Sdn Bhd

Plaintiff

Felda Global Ventures Plantations (M) Sdn Bhd

Defendant

Procedural Posture

Originating Summons to Set Aside Arbitral Award / Interlocutory Application for Security Under Section 37(7) Arbitration Act 2005

Legal Issues

  1. 1 Whether the court should order security under section 37(7) Arbitration Act 2005
  2. 2 Whether a party's impecuniosity alone justifies ordering security
  3. 3 Whether the setting aside application is bona fide or a delay tactic

Ratio Decidendi

The application for security under section 37(7) Arbitration Act 2005 was dismissed because on balancing prejudice the risk to MDSB of being denied an opportunity to be heard outweighed FGV's risk of non-enforcement; impecuniosity alone does not justify ordering security and FGV had knowledge of MDSB's financial position such that ordering security would be inequitable.

Court Disposition

Application for security dismissed

Orders

  • Enclosure 28 dismissed with costs in the cause