SOLAR DISTRICT COOLING SDN BHD 1. ) KUMPULAN CLO BERSEKUTU SDN BHD 2. ) RENOWN PROJECTS SDN BHD

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
Arbitration Contract Civil Procedure Stay of Proceedings Arbitration Clause Interpretation Dispute Resolution Clause Costs Forum Selection

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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)

  1. 1 Whether clause 16(c) of the Award letter mandates arbitration as exclusive forum before initiating court proceedings
  2. 2 Whether clause 16(c) gives the defendant a unilateral discretion to refer to arbitration or court
  3. 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