DEKINJAYA BUILDER SDN BHD CHONG LEK ENGINEERING WORKS SDN BHD

DEKINJAYA BUILDER SDN BHD CHONG LEK ENGINEERING WORKS SDN BHD

The High Court refused to set aside the adjudication decision because DB failed to establish any of the limited grounds in s.15 CIPAA: the payment claim was not premature, the adjudicator provided adequate reasons when read contextually, he addressed DB's allegations (fraud, ownership, termination) and there was no denial of natural justice in declining an oral hearing; accordingly OS1 was dismissed and OS2 (enforcement) was allowed and the Decision was enforced with costs.

Citation
WA-24C-134-06/2020 & WA-24C-58-03/2020 (Mahkamah Tinggi)
Parties
Plaintiff in OS 1; Defendant in OS 2: DEKINJAYA BUILDER SDN BHD; Defendant in OS 1; Plaintiff in OS 2: CHONG LEK ENGINEERING WORKS SDN BHD
Court
High Court
Jurisdiction
Malaysia
Judgment Date
24 December 2020
Case Number
WA-24C-134-06/2020 & WA-24C-58-03/2020 (Mahkamah Tinggi)
Procedural Posture
CIPAA Adjudication Set Aside and Enforcement Proceedings / Originating Summons Heard on Merits; Judgment Delivered
Outcome
OS 1 dismissed; OS 2 allowed and adjudication decision enforced as judgment
Legal Topics
Setting Aside Adjudication Decision, Enforcement of Adjudication as Judgment, Jurisdiction of Adjudicator, Natural Justice and Procedural Fairness, Payment Claim Timing, Termination and Contractual Set Off, Ownership and Fraud Allegations, Oral Hearing Discretion
Source Language
Malay/English
Construction Law Adjudication Under CIPAA Contract Law Civil Procedure Setting Aside Adjudication Decision Enforcement of Adjudication as Judgment Jurisdiction of Adjudicator Natural Justice and Procedural Fairness +4 more

Case Brief

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Parties

DEKINJAYA BUILDER SDN BHD

Plaintiff in OS 1; Defendant in OS 2

CHONG LEK ENGINEERING WORKS SDN BHD

Defendant in OS 1; Plaintiff in OS 2

Procedural Posture

CIPAA Adjudication Set Aside and Enforcement Proceedings / Originating Summons Heard on Merits; Judgment Delivered

Legal Issues

  1. 1 Whether payment claim was premature and deprived adjudicator of jurisdiction
  2. 2 Whether adjudicator complied with s.12(4) requirement to give reasons
  3. 3 Whether adjudicator failed to deal with respondent's (DB's) contentions on fabrication, ownership and termination (natural justice)

Ratio Decidendi

The High Court refused to set aside the adjudication decision because DB failed to establish any of the limited grounds in s.15 CIPAA: the payment claim was not premature, the adjudicator provided adequate reasons when read contextually, he addressed DB's allegations (fraud, ownership, termination) and there was no denial of natural justice in declining an oral hearing; accordingly OS1 was dismissed and OS2 (enforcement) was allowed and the Decision was enforced with costs.

Court Disposition

OS 1 dismissed; OS 2 allowed and adjudication decision enforced as judgment

Orders

  • OS 1 dismissed with costs of RM6000.00 subject to standard allocator
  • OS 2 allowed and adjudication decision enforced; costs of RM6000.00 subject to standard allocator