Malaysia Case Law: Decisions & Judgments | LexChat

Malaysia Case Law

Interpretation of contractual option clauses
  • 28 Feb 2025

    SETIA AWAN MANAGEMENT SDN BHD SPNB ASPIRASI SDN BHD

    Citation
    A-02(IM)(C)-1587-09/2024 (Mahkamah Rayuan)
    Court
    IM
    Case number
    A-02(IM)(C)-1587-09/2024 (Mahkamah Rayuan)

    An arbitration clause that gives either party an option to proceed to court or to arbitration is a valid arbitration agreement under AA 2005; where a party validly elects arbitration an arbitration agreement comes into existence and the court is required to stay proceedings under s10(1) unless the agreement is null and void, inoperative or incapable of performance; gaps in the clause (seat, number, appointment) are filled by default statutory provisions and do not invalidate the clause; the court may make a prima facie determination and refer the matter to arbitration, while s18 preserves the…