SYARIKAT T.D. SDN BHD JEKS ENGINEERING SDN BHD JEKS ENGINEERING SDN BHD SYARIKAT T.D. SDN BHD

SYARIKAT T.D. SDN BHD JEKS ENGINEERING SDN BHD JEKS ENGINEERING SDN BHD SYARIKAT T.D. SDN BHD

The Court held STD failed to establish any s15 CIPAA ground: AIAC's administrative conduct and appointment did not breach CIPAA or natural justice; the adjudicator considered submissions and did not go on a 'frolic' or decide issues never argued; refusal to entertain cross-contract set-offs was correct under CIPAA and s14; awarding of interest was within s25(o); no clear and unequivocal errors warranting a stay under s16 were shown. Therefore the setting aside and stay applications were dismissed and enforcement under s28 CIPAA granted.

Citation
WA-24C-13-01/2019 & WA-24C-38-03/2019 (Mahkamah Tinggi)
Parties
Plaintiff/respondent: Syarikat T.D. Sdn Bhd; Defendant/applicant: JEKS Engineering Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
13 September 2019
Case Number
WA-24C-13-01/2019 & WA-24C-38-03/2019 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (challenges to Adjudication Decision and Enforcement) / Hearing and Grounds of Judgment Disposing Interlocutory Applications; Enforcement Ordered
Outcome
Amendment allowed in part (intitulement); Setting Aside Application dismissed; Stay Application dismissed; Enforcement Application allowed
Legal Topics
Setting Aside Adjudication Decision, Stay of Adjudication Decision, Enforcement of Adjudication Decision as Court Judgment, Appointment of Adjudicator, Natural Justice, Set Off, Interest, Amendment of Originating Summons
Source Language
Malay/English
Construction Law Adjudication (cipaa) Arbitration Civil Procedure Setting Aside Adjudication Decision Stay of Adjudication Decision Enforcement of Adjudication Decision as Court Judgment Appointment of Adjudicator +4 more

Case Brief

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Parties

Syarikat T.D. Sdn Bhd

Plaintiff/respondent

JEKS Engineering Sdn Bhd

Defendant/applicant

Procedural Posture

Originating Summons (challenges to Adjudication Decision and Enforcement) / Hearing and Grounds of Judgment Disposing Interlocutory Applications; Enforcement Ordered

Legal Issues

  1. 1 Whether adjudication decision should be set aside under s15 CIPAA for denial of natural justice or excess of jurisdiction
  2. 2 Whether AIAC’s appointment of the adjudicator was illegal or defective
  3. 3 Whether the adjudicator exceeded jurisdiction by considering late payment interest and by refusing declaratory relief/set-offs from other contracts

Ratio Decidendi

The Court held STD failed to establish any s15 CIPAA ground: AIAC's administrative conduct and appointment did not breach CIPAA or natural justice; the adjudicator considered submissions and did not go on a 'frolic' or decide issues never argued; refusal to entertain cross-contract set-offs was correct under CIPAA and s14; awarding of interest was within s25(o); no clear and unequivocal errors warranting a stay under s16 were shown. Therefore the setting aside and stay applications were dismissed and enforcement under s28 CIPAA granted.

Court Disposition

Amendment allowed in part (intitulement); Setting Aside Application dismissed; Stay Application dismissed; Enforcement Application allowed

Orders

  • Amendment to originating summons (OS No. WA-24C-13-01/2019) allowed only in respect of intitulement as prayed (costs in the cause)
  • Setting Aside Application (Enclosure 1, OS No. WA-24C-13-01/2019) dismissed with costs RM12,000.00 subject to allocator