CHARTER BUILT CONSTRUCTION SDN BHD AMALAN SETAR (M) SDN BHD

CHARTER BUILT CONSTRUCTION SDN BHD AMALAN SETAR (M) SDN BHD

The High Court held there was no breach of natural justice and no clear and unequivocal error: the adjudicator addressed and applied his mind to the principal issues (Final Account and DLP), the Final Account was prima facie conclusive under the contract, and alleged omissions were peripheral or would not alter the adjudicator's outcome; accordingly the applications to set aside and to stay were dismissed and the adjudication decision was enforceable and ordered as a judgment under s28 CIPAA.

Citation
WA-24C-160-10/2023 (Mahkamah Tinggi)
Parties
Applicant in Os160; Respondent in OS175 & OS187: Charter Built Construction Sdn Bhd; Respondent in Os160; Applicant in OS175 & OS187: Amalan Setar (M) Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
6 May 2024
Case Number
WA-24C-160-10/2023 (Mahkamah Tinggi)
Procedural Posture
Enforcement and Challenge of Adjudication Decision Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) / Originating Summonses for Enforcement (s28), Set Aside (s15) and Stay (s16) Heard in High Court; Judgment Delivered
Outcome
OS175 and OS187 dismissed with costs; OS160 enforcement granted and Order in Terms for prayers 1, 2 and 3 of enclosure 1 in OS160 entered
Legal Topics
Statutory Adjudication, Enforcement of Adjudication Decision, Natural Justice (audi Alteram Partem), Stay of Enforcement, Defects Liability Period, Extension of Time, Final Account, Excess of Jurisdiction
Source Language
Malay/English
Construction Law Administrative Law Contract Law Arbitration Law Civil Procedure Statutory Adjudication Enforcement of Adjudication Decision Natural Justice (audi Alteram Partem) +5 more

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Parties

Charter Built Construction Sdn Bhd

Applicant in Os160; Respondent in OS175 & OS187

Amalan Setar (M) Sdn Bhd

Respondent in Os160; Applicant in OS175 & OS187

Procedural Posture

Enforcement and Challenge of Adjudication Decision Under the Construction Industry Payment and Adjudication Act 2012 (cipaa) / Originating Summonses for Enforcement (s28), Set Aside (s15) and Stay (s16) Heard in High Court; Judgment Delivered

Legal Issues

  1. 1 Whether the adjudicator breached natural justice by failing to decide on the date the Final Claim ought to be issued
  2. 2 Whether the adjudicator failed to decide on the duration of the Defects Liability Period (DLP)
  3. 3 Whether the adjudicator exceeded jurisdiction by deciding on a premature claim

Ratio Decidendi

The High Court held there was no breach of natural justice and no clear and unequivocal error: the adjudicator addressed and applied his mind to the principal issues (Final Account and DLP), the Final Account was prima facie conclusive under the contract, and alleged omissions were peripheral or would not alter the adjudicator's outcome; accordingly the applications to set aside and to stay were dismissed and the adjudication decision was enforceable and ordered as a judgment under s28 CIPAA.

Court Disposition

OS175 and OS187 dismissed with costs; OS160 enforcement granted and Order in Terms for prayers 1, 2 and 3 of enclosure 1 in OS160 entered

Orders

  • Dismiss OS175 (application under s15 CIPAA to set aside AD) with costs
  • Dismiss OS187 (application under s16 CIPAA for stay) with costs