Uzma Engineering Sdn Bhd 1. ) Khan Co. Ltd 2. ) Kong Offshore Malaysia Sdn. Bhd.

Uzma Engineering Sdn Bhd 1. ) Khan Co. Ltd 2. ) Kong Offshore Malaysia Sdn. Bhd.

The court found that the Letters of Award contain valid, binding and capable-of-performance arbitration agreements (including LA 24.8.2016 and the four LOAs with the 2nd defendant), that any alleged ambiguity as to the Singapore administering centre could be resolved (SIAC was the apparent institution and had registered the arbitration), and therefore under section 10 Arbitration Act 2005 the court must stay the court proceedings and refer the parties to arbitration; ancillary factual disputes (including existence of the Collaboration Agreement and inter-company relationships) are matters for the arbitrator or trial and not for the interlocutory stage.

Citation
WA-22C-24-03/2021 (Mahkamah Tinggi)
Parties
Plaintiff: UZMA ENGINEERING SDN BHD; 1st Defendant: KHAN CO. LTD; 2nd Defendant: KONG OFFSHORE MALAYSIA SDN BHD (In Liquidator)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
4 August 2023
Case Number
WA-22C-24-03/2021 (Mahkamah Tinggi)
Procedural Posture
Civil Suit (interlocutory Applications Under Arbitration Act 2005) / Application for Stay of Proceedings and Anti Suit Injunction (interlocutory)
Outcome
Applications for stay granted; proceedings stayed and referred to arbitration; plaintiff's injunction application dismissed as academic.
Legal Topics
Stay of Proceedings Under Section 10 Arbitration Act 2005, Validity and Scope of Arbitration Agreements, Competence Competence (tribunal Jurisdiction), Anti Suit Injunction, Ambiguity of Arbitration Clause, Consolidation/multiplicity of Proceedings
Source Language
Malay/English
Arbitration Civil Procedure Contract Law Stay of Proceedings Under Section 10 Arbitration Act 2005 Validity and Scope of Arbitration Agreements Competence Competence (tribunal Jurisdiction) Anti Suit Injunction Ambiguity of Arbitration Clause +1 more

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Parties

UZMA ENGINEERING SDN BHD

Plaintiff

KHAN CO. LTD

1st Defendant

KONG OFFSHORE MALAYSIA SDN BHD (In Liquidator)

2nd Defendant

Procedural Posture

Civil Suit (interlocutory Applications Under Arbitration Act 2005) / Application for Stay of Proceedings and Anti Suit Injunction (interlocutory)

Legal Issues

  1. 1 Whether valid arbitration agreements exist between the parties
  2. 2 Whether the court must stay the court proceedings under section 10 of the Arbitration Act 2005
  3. 3 Whether the arbitration clauses are ambiguous as to seat and administering institution

Ratio Decidendi

The court found that the Letters of Award contain valid, binding and capable-of-performance arbitration agreements (including LA 24.8.2016 and the four LOAs with the 2nd defendant), that any alleged ambiguity as to the Singapore administering centre could be resolved (SIAC was the apparent institution and had registered the arbitration), and therefore under section 10 Arbitration Act 2005 the court must stay the court proceedings and refer the parties to arbitration; ancillary factual disputes (including existence of the Collaboration Agreement and inter-company relationships) are matters for the arbitrator or trial and not for the interlocutory stage.

Court Disposition

Applications for stay granted; proceedings stayed and referred to arbitration; plaintiff's injunction application dismissed as academic.

Orders

  • Enclosure 53 (Plaintiff's anti-suit injunction) dismissed with costs