Malaysia Case Law: Decisions & Judgments | LexChat

Topic

Doctrine of separability

Legal area

Court

25 Jun 2024

PENINSULA EDUCATION (SETIA ALAM) SDN. BHD. BIAXIS (M) SDN. BHD. (IN LIQUIDATION)

Citation

B-02(IM)(C)-1834-11/2023 (Mahkamah Rayuan)
Court

IM
Case number

B-02(IM)(C)-1834-11/2023 (Mahkamah Rayuan)

The Court of Appeal held that liquidation does not automatically render a pre‑existing arbitration agreement inoperative; under s 10 AA 2005 the Court must stay proceedings and refer matters to arbitration unless the agreement is null, void or inoperative, which the respondent did not prove on the balance of probabilities; the dispute is contractual and arbitrable and the High Court erred in refusing the stay; appeal allowed and matter referred to arbitration; costs RM10,000 awarded to appellant.
30 Oct 2023

GISE KAM KWAN INTERNATIONAL TRADE LTD Antara Steel Mills Sdn. Bhd.

Citation

W-02(IM)(NCvC)-2329-12/2022 (Mahkamah Rayuan)
Court

IM
Case number

W-02(IM)(NCvC)-2329-12/2022 (Mahkamah Rayuan)

The Court of Appeal held the recital reference to the main agreements did not incorporate the arbitration clause into the TSA because the operative part of the TSA contains a new and differently worded dispute resolution clause (Clause 6) referring to taking 'legal action' and recovering 'court fee', indicating the parties intended court recovery proceedings and that the TSA is a standalone settlement superseding the main agreements; accordingly the High Court's stay under s10 AA2005 was set aside and the matter remitted to the High Court.