PROGRESS CENTRE ENGINEERING SDN BHD 1. ) DESARU CORNICHE HOTEL SDN BHD 2. ) MALAYSIAN RESOURCES CORPORATION BERHAD

PROGRESS CENTRE ENGINEERING SDN BHD 1. ) DESARU CORNICHE HOTEL SDN BHD 2. ) MALAYSIAN RESOURCES CORPORATION BERHAD

The court found on the evidence that MRCB and MRCB Builders were in a principal–agent relationship accepted by Desaru through conduct; Desaru treated MRCB/MRCB Builders as a single economic unit and therefore Desaru was the employer and the "principal" for s30 purposes. The court also found there were monies due or payable by Desaru to MRCB/MRCB Builders in respect of outstanding variation orders at the time Desaru received the s30 request. Desaru failed to serve the s30(2) notice or pay; accordingly s30(3) applied and Desaru was ordered to pay the adjudicated sum together with interest and adjudication costs within the statutory timeframe.

Citation
WA-24C-187-09/2022 (Mahkamah Tinggi)
Parties
Plaintiff: Progress Centre Engineering Sdn Bhd; 1st Defendant: Desaru Corniche Hotel Sdn Bhd; 2nd Defendant: Malaysian Resources Corporation Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
20 March 2023
Case Number
WA-24C-187-09/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Under S 30 CIPAA / Judgment
Outcome
Originating Summons allowed. Desaru Corniche Hotel Sdn Bhd ordered to pay the adjudicated amount together with interest and adjudication costs; ancillary costs awarded.
Legal Topics
CIPAA S30 Direct Payment, Definition of Principal Under S4 CIPAA, Principal Agent and Ostensible Authority, Set Off and Recovery of Debt, Effect of Arbitration/dispute Resolution Agreement on Statutory Remedy
Source Language
Malay/English
Construction Law Adjudication Contract Law Agency Law Civil Procedure CIPAA S30 Direct Payment Definition of Principal Under S4 CIPAA Principal Agent and Ostensible Authority +2 more

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Parties

Progress Centre Engineering Sdn Bhd

Plaintiff

Desaru Corniche Hotel Sdn Bhd

1st Defendant

Malaysian Resources Corporation Berhad

2nd Defendant

Procedural Posture

Originating Summons Under S 30 CIPAA / Judgment

Legal Issues

  1. 1 Who is the "principal" for the purposes of s 4 and s 30 CIPAA?
  2. 2 Whether monies were due and owing by the principal to the losing party at the time the principal received the s 30 request

Ratio Decidendi

The court found on the evidence that MRCB and MRCB Builders were in a principal–agent relationship accepted by Desaru through conduct; Desaru treated MRCB/MRCB Builders as a single economic unit and therefore Desaru was the employer and the "principal" for s30 purposes. The court also found there were monies due or payable by Desaru to MRCB/MRCB Builders in respect of outstanding variation orders at the time Desaru received the s30 request. Desaru failed to serve the s30(2) notice or pay; accordingly s30(3) applied and Desaru was ordered to pay the adjudicated sum together with interest and adjudication costs within the statutory timeframe.

Court Disposition

Originating Summons allowed. Desaru Corniche Hotel Sdn Bhd ordered to pay the adjudicated amount together with interest and adjudication costs; ancillary costs awarded.

Orders

  • 1. Desaru Corniche Hotel Sdn Bhd is ordered to pay to the Plaintiff the Adjudicated Sum of RM1,071,856.25 together with interest and the adjudication costs and party-to-party costs as awarded in the Adjudication Decision (interest, RM35,000.00 party-to-party cost and RM25,132.15 adjudication costs) within 14 working...
  • 2. Desaru is ordered to pay costs of RM5,000.00 to the Plaintiff, subject to allocatur.