DATUK BANDAR KUALA LUMPUR SRI TINGGI SDN BHD

DATUK BANDAR KUALA LUMPUR SRI TINGGI SDN BHD

The High Court set aside the arbitral award because the arbitrator disregarded binding Malaysian legal principles (including stare decisis), misapplied the concept of public policy, introduced novel legal reasoning without affording the parties an opportunity to address it (breach of natural justice under s20 AA 2005), and thereby exceeded the scope of the submission to arbitration; these defects collectively met the statutory grounds in ss 37(1)(a)(iii), 37(1)(b)(ii) and 37(2)(b) AA 2005 for setting aside the award.

Citation
WA-24C(ARB)-30-05/2024 (Mahkamah Tinggi)
Parties
Plaintiff (os 30); Defendant (os 16): Datuk Bandar Kuala Lumpur; Defendant (os 30); Plaintiff (os 16): Sri Tinggi Sdn Bhd
Court
ARB
Jurisdiction
Malaysia
Judgment Date
16 December 2024
Case Number
WA-24C(ARB)-30-05/2024 (Mahkamah Tinggi)
Procedural Posture
Setting Aside and Enforcement of an Arbitration Award / High Court Judgment on Originating Summonses
Outcome
Originating Summons No. WA-24C(ARB)-30-05/2024 allowed; arbitral Award dated 6.2.2024 set aside. Originating Summons No. WA-24C(ARB)-16-03/2024 dismissed with costs.
Legal Topics
Set Aside Arbitration Award, Enforcement of Award, Public Policy, Natural Justice, Stare Decisis, Excess of Jurisdiction, Contract Interpretation, Procedural Fairness
Source Language
Malay/English
Arbitration Contract Civil Procedure Public Law Set Aside Arbitration Award Enforcement of Award Public Policy Natural Justice +4 more

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Parties

Datuk Bandar Kuala Lumpur

Plaintiff (os 30); Defendant (os 16)

Sri Tinggi Sdn Bhd

Defendant (os 30); Plaintiff (os 16)

Procedural Posture

Setting Aside and Enforcement of an Arbitration Award / High Court Judgment on Originating Summonses

Legal Issues

  1. 1 Whether the arbitral award should be set aside for breach of natural justice and public policy
  2. 2 Whether the arbitrator was bound to apply Malaysian case law and the doctrine of stare decisis
  3. 3 Whether the arbitrator exceeded his jurisdiction by deciding issues not referred to arbitration (new difference)

Ratio Decidendi

The High Court set aside the arbitral award because the arbitrator disregarded binding Malaysian legal principles (including stare decisis), misapplied the concept of public policy, introduced novel legal reasoning without affording the parties an opportunity to address it (breach of natural justice under s20 AA 2005), and thereby exceeded the scope of the submission to arbitration; these defects collectively met the statutory grounds in ss 37(1)(a)(iii), 37(1)(b)(ii) and 37(2)(b) AA 2005 for setting aside the award.

Court Disposition

Originating Summons No. WA-24C(ARB)-30-05/2024 allowed; arbitral Award dated 6.2.2024 set aside. Originating Summons No. WA-24C(ARB)-16-03/2024 dismissed with costs.

Orders

  • Award dated 6 February 2024 set aside pursuant to ss 37(1)(a)(iii), 37(1)(b)(ii) and 37(2)(b) Arbitration Act 2005
  • Order in terms of prayers 1 and 2 of enclosure 1 in OS 30 granted