JA24C(ARB)--07/2021 (Mahkamah Tinggi)

JA24C(ARB)--07/2021 (Mahkamah Tinggi)

Court found credible evidence of Defendant's insolvency (admitted), frozen accounts, audited deficits and failure to pay over RM80,000 in court-ordered costs; these factors raised reasonable doubt as to Defendant's ability to pay costs, justifying an order for security for costs. Considering the adjudication award (RM1,020,467.42), prior unpaid costs and Defendant's RM5m claim, RM400,000 security was proportionate and ordered with costs to Plaintiff.

Citation
JA24C(ARB)--07/2021 (Mahkamah Tinggi)
Parties
Plaintiff: Sigma Elevator (M) Sdn Bhd; Defendant: Perbadanan Pengurusan City Plaza
Court
ARB
Jurisdiction
Malaysia
Judgment Date
25 November 2021
Case Number
JA24C(ARB)--07/2021 (Mahkamah Tinggi)
Procedural Posture
Security for Costs Application Under Arbitration Act 2005 and Enforcement of CIPAA Adjudication / Interim Application for Security for Costs in High Court
Outcome
Plaintiff's application allowed
Legal Topics
Security for Costs, Interim Measures, CIPAA Enforcement, Adjudication Enforcement, Insolvency
Source Language
Malay/English
Arbitration Civil Procedure Construction Law Company Insolvency Enforcement of Adjudication Security for Costs Interim Measures CIPAA Enforcement +2 more

Case Brief

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Parties

Sigma Elevator (M) Sdn Bhd

Plaintiff

Perbadanan Pengurusan City Plaza

Defendant

Procedural Posture

Security for Costs Application Under Arbitration Act 2005 and Enforcement of CIPAA Adjudication / Interim Application for Security for Costs in High Court

Legal Issues

  1. 1 Whether security for costs should be ordered under section 11(1) of the Arbitration Act 2005
  2. 2 Whether the Defendant is unable to pay costs (insolvency, frozen accounts, audited deficits)
  3. 3 Whether Defendant's failure to pay prior court-ordered costs justifies security for costs

Ratio Decidendi

Court found credible evidence of Defendant's insolvency (admitted), frozen accounts, audited deficits and failure to pay over RM80,000 in court-ordered costs; these factors raised reasonable doubt as to Defendant's ability to pay costs, justifying an order for security for costs. Considering the adjudication award (RM1,020,467.42), prior unpaid costs and Defendant's RM5m claim, RM400,000 security was proportionate and ordered with costs to Plaintiff.

Court Disposition

Plaintiff's application allowed

Orders

  • Security for costs of RM400000.00 to be paid by Defendant
  • Costs of the application awarded to Plaintiff