MUDAJAYA CORPORATION BERHAD KWSL BUILDERS SDN BHD

MUDAJAYA CORPORATION BERHAD KWSL BUILDERS SDN BHD

The court dismissed both setting aside applications because CIPAA permits adjudication to proceed concurrently with court litigation and the statutory grounds in s15 do not include prior commencement of suit or alleged mala fides from exercising statutory rights; adjudicators correctly confined jurisdiction to the specific contract underlying each payment claim so counterclaims based on other contracts or torts were not permissible in adjudication and could not exceed the adjudication claim; stays were refused because no clear and unequivocal error was shown and the interest of justice did not favor stay; enforcement applications were allowed as statutory conditions for leave were satisfied.

Citation
BA-24C-20-03/2022 (Mahkamah Tinggi)
Parties
Plaintiff (also Appears as Defendant in Related Originating Summons): Mudajaya Corporation Bhd; Defendant (also Appears as Plaintiff in Related Originating Summons): KWSL Builders Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
31 May 2022
Case Number
BA-24C-20-03/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summonses Under CIPAA (setting Aside, Stay and Enforcement) / Judgment on Four Originating Summonses (setting Aside Applications, Stay Applications and Enforcement Applications)
Outcome
Setting aside applications (OS No. 20 and OS No. 9) dismissed; stay applications (for both OS No. 20 and OS No. 9) dismissed; enforcement applications (Enforcement OS No. 23 and Enforcement OS No. 13) allowed; costs awarded to KWSL
Legal Topics
Setting Aside Adjudication Decision, Enforcement of Adjudication Decision, Stay of Enforcement, Issue Estoppel, Natural Justice (procedural Fairness), Abuse of Process, Set Off and Counterclaim, Jurisdiction of Adjudicator
Source Language
Malay/English
Construction Law Adjudication (cipaa) Civil Procedure Setting Aside Adjudication Decision Enforcement of Adjudication Decision Stay of Enforcement Issue Estoppel Natural Justice (procedural Fairness) +3 more

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Parties

Mudajaya Corporation Bhd

Plaintiff (also Appears as Defendant in Related Originating Summons)

KWSL Builders Sdn Bhd

Defendant (also Appears as Plaintiff in Related Originating Summons)

Procedural Posture

Originating Summonses Under CIPAA (setting Aside, Stay and Enforcement) / Judgment on Four Originating Summonses (setting Aside Applications, Stay Applications and Enforcement Applications)

Legal Issues

  1. 1 Whether prior commencement of court proceedings bars adjudication and mandates setting aside of adjudication decision
  2. 2 Whether commencement of adjudication after filing of suit amounts to mala fides or abuse of process
  3. 3 Whether adjudication proceedings were contrary to the object of CIPAA

Ratio Decidendi

The court dismissed both setting aside applications because CIPAA permits adjudication to proceed concurrently with court litigation and the statutory grounds in s15 do not include prior commencement of suit or alleged mala fides from exercising statutory rights; adjudicators correctly confined jurisdiction to the specific contract underlying each payment claim so counterclaims based on other contracts or torts were not permissible in adjudication and could not exceed the adjudication claim; stays were refused because no clear and unequivocal error was shown and the interest of justice did not favor stay; enforcement applications were allowed as statutory conditions for leave were satisfied.

Court Disposition

Setting aside applications (OS No. 20 and OS No. 9) dismissed; stay applications (for both OS No. 20 and OS No. 9) dismissed; enforcement applications (Enforcement OS No. 23 and Enforcement OS No. 13) allowed; costs awarded to KWSL

Orders

  • OS No. BA-24C-20-03/2022 (Setting Aside Application) dismissed
  • Enforcement OS No. BA-24C-23-04/2022 allowed (leave to enforce Adjudication Decision (OS No. 20) as High Court judgment)