S5 Systems Sdn Bhd IRIS Information Technology Systems Sdn Bhd

S5 Systems Sdn Bhd IRIS Information Technology Systems Sdn Bhd

Applying the Keet Gerald Francis test the court found although there were arguable issues for arbitration the plaintiff failed to prove damages would be inadequate, the balance of convenience favoured the defendant because an injunction would prejudice a national public interest project and third parties, the plaintiff had delayed and effectively waived the status quo by withdrawing from the project, and the plaintiff could not demonstrate ability to meet an undertaking in damages; accordingly the interlocutory injunction under s.11 AA 2005 was refused and the originating summons dismissed with costs.

Citation
WA-24NCvC-2667-12/2021 (Mahkamah Tinggi)
Parties
Plaintiff: S5 Systems Sdn Bhd; Defendant: Iris Information Technology Systems Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
5 April 2022
Case Number
WA-24NCvC-2667-12/2021 (Mahkamah Tinggi)
Procedural Posture
Commercial Arbitration Dispute; Injunction Application Under Arbitration Act 2005 / Originating Summons (interlocutory Injunction) Heard and Dismissed by High Court; Costs Awarded; Plaintiff Filed Appeal
Outcome
Originating Summons dismissed
Legal Topics
Interim Measures Under S.11 Arbitration Act 2005, Consortium Agreement and Subcontracting, Mandatory Vs Prohibitory Injunction, Keet Gerald Francis Test, Status Quo and Waiver, Adequacy of Damages, Undue Delay and Abuse of Process
Source Language
Malay/English
Arbitration Contract Injunction Commercial Law Public Law Interim Measures Under S.11 Arbitration Act 2005 Consortium Agreement and Subcontracting Mandatory Vs Prohibitory Injunction +4 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 4 Authorities cited 11 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

S5 Systems Sdn Bhd

Plaintiff

Iris Information Technology Systems Sdn Bhd

Defendant

Procedural Posture

Commercial Arbitration Dispute; Injunction Application Under Arbitration Act 2005 / Originating Summons (interlocutory Injunction) Heard and Dismissed by High Court; Costs Awarded; Plaintiff Filed Appeal

Legal Issues

  1. 1 Whether an injunction under s.11(1)(a) Arbitration Act 2005 to maintain or restore status quo should be granted pending arbitration
  2. 2 Whether there is a serious question to be tried
  3. 3 Whether damages are an adequate remedy

Ratio Decidendi

Applying the Keet Gerald Francis test the court found although there were arguable issues for arbitration the plaintiff failed to prove damages would be inadequate, the balance of convenience favoured the defendant because an injunction would prejudice a national public interest project and third parties, the plaintiff had delayed and effectively waived the status quo by withdrawing from the project, and the plaintiff could not demonstrate ability to meet an undertaking in damages; accordingly the interlocutory injunction under s.11 AA 2005 was refused and the originating summons dismissed with costs.

Court Disposition

Originating Summons dismissed

Orders

  • Originating Summons dismissed
  • Costs awarded to Defendant in sum of RM30000.00 payable within 14 days