SOLAR DISTRICT COOLING SDN BHD 1. ) KUMPULAN CLO BERSEKUTU SDN BHD 2. ) RENOWN PROJECTS SDN BHD
Clause 16(c) did not create an absolute, mandatory bar to court proceedings because its wording conferred discretion and did not impose a mutual, mandatory obligation to arbitrate prior to court action; Defendant First's inaction meant Plaintif was not bound to await arbitration and the application to stay and refer...
Source-derived case information.
- Citation
- BB-A52C-14-09/2022 (Mahkamah Sesyen)
- Parties
- Plaintiff: Solar District Cooling Sdn Bhd; Defendant 1: Kumpulan CLO Bersekutu Sdn Bhd; Defendant 2: Renown Projects Sdn Bhd
- Court
- Sessions Court
- Jurisdiction
- Malaysia
- Judgment Date
- 4 October 2023
- Case Number
- BB-A52C-14-09/2022 (Mahkamah Sesyen)
- Procedural Posture
- Civil Contract/debt / Application to Stay Proceedings and Refer to Arbitration Under Arbitration Act 2005 (s10)
- Outcome
- Application by Defendant First to stay proceedings and refer to arbitration dismissed
- Legal Topics
- Stay of Proceedings, Arbitration Clause Interpretation, Dispute Resolution Clause, Costs, Forum Selection
Source-derived case record
Summary, issues, holding and outcome
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Parties
Solar District Cooling Sdn Bhd
Plaintiff
Kumpulan CLO Bersekutu Sdn Bhd
Defendant 1
Renown Projects Sdn Bhd
Defendant 2
Procedural Posture
Civil Contract/debt / Application to Stay Proceedings and Refer to Arbitration Under Arbitration Act 2005 (s10)
Legal Issues
- 1 Whether clause 16(c) of the Award letter mandates arbitration as exclusive forum before initiating court proceedings
- 2 Whether clause 16(c) gives the defendant a unilateral discretion to refer to arbitration or court
- 3 Whether the plaintiff's court action breached the dispute resolution clause and warrants a stay and referral to arbitration
Ratio Decidendi
Clause 16(c) did not create an absolute, mandatory bar to court proceedings because its wording conferred discretion and did not impose a mutual, mandatory obligation to arbitrate prior to court action; Defendant First's inaction meant Plaintif was not bound to await arbitration and the application to stay and refer to arbitration was dismissed.
Court Disposition
Application by Defendant First to stay proceedings and refer to arbitration dismissed
Orders
- Application dismissed with costs RM1000.00
Full Case Text
Judgment text and source record
1 paragraphs
BB-A52C-14-09/2022 Kand. 44 26/04/2023 10:59:52 Dalam Perkara Mahkamah Sesyen di Petaling Jaya, Dalam Negeri Selangor Darul Ehsan Guaman No. BB-A52C-14-09/2022 Antara Solar District Cooling Sdn Bhd …Plaintif Dan 1. Kumpulan CLO Bersekutu Sdn Bhd 2. Renown Projects Sdn Bhd ... Defendan-Defendan ALASAN PENGHAKIMAN Pendahuluan Mahkamah ini pada 22.2.2023 memutuskan bahawa permohonan Defendan Pertama seperti di Lampiran 13 di bawah Seksyen 10 Akta Timbang Tara 2005 untuk menggantungkan prosiding dan merujukkan kes ini kepada prosiding timbangtara ditolak dengan kos RM1,000.00. Fakta kes Hubungan kontrak antara Plaintif dan Defendan Pertama adalah sebagai sub-kontraktor (iaituPlaintif) dan kontraktor utama / pemaju (iaitu Defendan Pertama) untuk projek pembangunan yang dikenali sebagai “Pembangunan Sebuah Bangunan Perdagangan 25 Tingkat di Parcel A, Sebahagian Lot P.T.| (Lot5252), Taman Desa Millenia, Puchong, Selangor (selepas ini dirujuksebagai “Projek tersebut’). 1 S/N 0Py32CorSUi1Rm4YKuekHw **Note : Serial number will be used to verify the originality of this document via eFILING portal Pada semua masa yang material, bagi pembinaan dan pembangunan Projek tersebut, kontraktor utama bagi Projek tersebut iaitu Defendan Pertama telah mendapatkan perkhidmatan Plaintif bagi kerja-kerja membekal dan memasang sistem Solar di Projek tersebut dengan jumlah kontrak sebanyak RM 1,113,000-00 yang kemudiannya_ ditambah tambahan kerja (‘Variation Order / VO') pada masa yang material menjadikan jumlah akhir sebanyak RM 1,468,446-00 yang perlu dibayar kepada Plaintif. Sehingga kini jumlah keberhutangan atau tunggakan bagi kerja-kerja membekal dan memasang sistem Solar tersebut adalah sebanyak RM 148,275-00 (selepas pembayaran-pembayaran sebelum ini) yang masih tertunggak dan belum dibayar oleh Defendan-defendan kepada Plaintif. Dasar perlantikan dan aturan bagi Plaintif seperti dalam Surat Award bertarikh 29.05.2015 tersebut sepertimana dalam Ekshibit D-1 dalam Lampiran 14 tersebut (‘surat Award tersebut’). Alasan-alasan Defendan Pertama Alasan-alasan permohonan ini secara ringkas adalah seperti berikut:-:- 1. Pertikaian di sini ditimbul daripada suatu surat awad bertarikh 29.05.2015 . 2. Fasal 16 Surat Awad mengandungi klausa penyelesaian pertikaian (dispute resolution clause) di mana Fasal 16(c) secara jelas memperuntukkan perjanjian timbang tara; 2 S/N 0Py32CorSUi1Rm4YKuekHw **Note : Serial number will be used to verify the originality of this document via eFILING portal 3. Defendan Pertama ingin merujuk perkara itu kepada prosiding timbang tara menurut Fasal 16 Surat Awad; 4. Tuntutan Plaintif di sini jelasnya merupakan suatu pertikaian atau perbezaan yang timbul antara pihak-pihak selepas penyempurnaan kerja- kerja subkontrak; 5. Perjanjian timbang tara adalah sah dan tidak terbatal, beroperasi dan mampu dilaksanakan; dan 6. Defendan Pertama tidak mengambil sebarang langkah dalam prosiding-prosiding di sini sebelum membuat permohonan ini. Dapatan Mahkamah Fasal 16 Surat Awad mengandungi klausa penyelesaian pertikaian (dispute resolution clause) dan Fasal 16(c) memperuntukkan :- 16. Dispute Resolution In the event of any dispute or differences arising between you and us, either during the progress of or after the completion or arising out of the non-completion of the Subcontract Works in accordance with the Terms and Conditions: (a) Both parties shall use their best efforts to resolve the same expediently and amicably through discussions and negotiations whereby either party may initiate the discussion and negotiation by written notice to the other party and such discussion and negotiation shall be held within fourteen (14) days from the issuance and receipt of such notice between the respective chief executive officers or managing directors of both parties for them to mutually agree and resolve the dispute or difference 3 S/N 0Py32CorSUi1Rm4YKuekHw **Note : Serial number will be used to verify the originality of this document via eFILING portal (b) In the event that such dispute or difference is unable to be resolved within thirty (30) days from the issuance and receipt of the notice referred to in paragraph 16( a) above, upon the mutual agreement of both parties, the matter shall be referred to a mediator agreed to by both parties provided always that this paragraph 16(b) shall not be deemed to be a pre-requisite step to be undertaken prior to paragraph 16(c) below. (c) In the event that such dispute or difference is unable to be resolved within thirty (30) days from the issuance and receipt of the notice referred to in paragraph 16(a) above, then notwithstanding paragraph 16(b) above, we shall have the discretion to refer the matter to a court of competent jurisdiction or to arbitration in Kuala Lumpur, Malaysia in accordance with the Arbitration Act, 2005 of Malaysia before an arbitrator mutually agreed by both parties or in the event that the arbitrator cannot be agreed upon mutually before such arbitrator appointed by the President for the time being of the Institute of Engineers Malaysia or Persatuan Arkitek Malaysia. Where differences or disputes are referred to arbitration in accordance with this paragraph 16( c), the decision of the arbitrator shall be final and binding on each of the parties. Isu utama berbangkit mengenai pentafsiran dan pemakaian klausa 16(c) tersebut iaitu, “…… we shall have the discretion to refer the matter to a court of competent jurisdiction or to arbitration in Kuala Lumpur, Malaysia in accordance with the Arbitration Act, 2005 of Malaysia” Mahkamah mengambil pendekatan dan menerima hujahan Plaintif bahawa dalam bacaan fasal yang sama tersebut, tidak ada sebarang 4 S/N 0Py32CorSUi1Rm4YKuekHw **Note : Serial number will be used to verify the originality of this document via eFILING portal bacaan yang memberikan sebarang pilihan ataupun langkah bagi Plaintif jika isu litigasi atau ‘dispute resolution’ timbul . Oleh demikian, fasal tersebut tidak mengikat Plaintif dalam keputusan memfailkan tindakan bagi proses ‘dispute resolution’ yang melibatkannya, khasnya apabila dan sekiranya Defendan Pertama tidak mengambil sebarang langkah aktif yang relevan pada masa yang material. Ia memprejudiskan hak Plaintif jika Defendan Pertama hanya berdiam diri tanpa mengambil sebarang langkah relevan bagi proses ‘dispute resolution’ yang timbul. Plaintif berhak mengambil inisiatifnya sendiri bagi proses ‘dispute resolution’ yang timbul, khasnya apabila pada masa yang material Defendan hanya berdiam diri sekiranya Plaintif tidak memfailkan tindakan di mahkamah ini. Interpretasi keseluruhan dan setiap perkataan dalam fasal tersebut adalah penting tentang kewujudan perkatan ‘discretion’ yang membangkitkan keadaan ‘directory’ dan/atau ‘permissory’ yang mewujudkan keadaan budibicara (‘discretion’) tersebut. Tambahan lagi pada masa yang material, Defendan Pertama mempunyai pengetahuan akan tuntutan dan hal fakta tuntutan yang dibawa Plaintif, tetapi langsung tidak mencadangkan bahawa proses timbang tara tersebut dijalankan. Tindakan Plaintif adalah sahih dan tidak melanggari mana-mana peruntukan atau mekanisme penyelesaian dalam Fasal 16 atau mana- mana bahagian Surat Awad tersebut, dan Plaintif berhak untuk bertindak 5 S/N 0Py32CorSUi1Rm4YKuekHw **Note : Serial number will be used to verify the originality of this document via eFILING portal memfailkan tindakan di mahkamah ini, tanpa perlu melalui prosiding timbangtara yang lebih memakan masa dan kos. Kesimpulan Berdasarkan alasan dan dapatan sebagaimana di atas, permohonan Defendan Pertama seperti di Lampiran 13 untuk menggantung dan merujuk kepada prosiding timbang tara ditolak dengan kos RM1,000.00 Bertarikh:17.4.2023 Faiz bin Hj. Dziyauddin Hakim Mahkamah Sesyen Sivil 3 Petaling Jaya Pihak-pihak Chong Kien Mun ( Tetuan Goh,Cheah & Chong ) peguam cara Plaintif Lee Kai Jun ( Tetuan Wayne Siang,Kai & Co. ) peguam cara Defendan Pertama 6 S/N 0Py32CorSUi1Rm4YKuekHw **Note : Serial number will be used to verify the originality of this document via eFILING portal