Malaysia Case Law: Decisions & Judgments

Topic

Section 30 cipaa

Legal area

Court

25 Sept 2023

COSMOS INFRATECH SDN BHD TURNPIKE SYNERGY SDN BHD PIHAK TERKILAN PANZANA ENTERPRISE SDN BHD

Citation

WA-24C-92-04/2022 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24C-92-04/2022 (Mahkamah Tinggi)

The court held that s.30 CIPAA is a specific statutory regime that takes precedence over the general moratorium and preference provisions of the Companies Act 2016; because monies were due or payable by the principal to the contractor at the time the s.30 request was received, the principal was statutorily obliged to make direct payment under s.30(3) CIPAA to the Plaintiff and the judicial management moratorium did not invalidate that obligation.
8 Oct 2020

1. ) CHONG LEK ENGINEERING WORKS SDN. BHD. (BA-24C-42-05/2020) (Co. No.: 602149-A) 2. ) CHONG LEK ENGINEERING WORKS SDN. BHD. (Co. No.: 602149-A) 1. ) PFCE INTEGRATED PLANT AND PROJECT SDN. BHD. (Co. No.: 608921-V) 2. ) PFCE INTEGRATED PLAN

Citation

BA-24C-42-05/2020 & BA-24C-43-05/2020 (Mahkamah Tinggi)
Court

High Court
Case number

BA-24C-42-05/2020 & BA-24C-43-05/2020 (Mahkamah Tinggi)

Plaintiff proved conditions in s30 CIPAA; once plaintiff proved non-payment, written request and non-payment by principal, evidential burden under s106 EA shifted to defendant to prove no sum was due or payable at time of request; defendant failed to discharge that burden and suppressed material documents (adverse inference under s114(g)); court therefore ordered defendant (as principal) to pay the adjudicated amounts (excluding adjudication costs), awarded interest and costs and lifted the corporate veil to reveal common family control which reinforced the finding of self-serving motive to a…
26 Apr 2019

CT INDAH CONSTRUCTION SDN BHD (NO. SYARIKAT: 505419-A) BHL GEMILANG SDN BHD (NO. SYARIKAT: 484693-W)

Citation

W-02(C)(A)-2056-10/2017 (Mahkamah Rayuan)
Court

C
Case number

W-02(C)(A)-2056-10/2017 (Mahkamah Rayuan)

Section 30(3) of CIPAA imposes an independent mandatory statutory obligation on a principal to pay the adjudicated sum to the successful claimant in the absence of proof of payment by the contractor, and such payment does not, per se, constitute an unlawful undue preference under s293 of the Companies Act; the principal may thereafter recover the sum from the contractor under s30(4); accordingly the High Court was wrong to deny direct payment and to hold that such payment would be a preferential payment.

Malaysia Case Law

COSMOS INFRATECH SDN BHD TURNPIKE SYNERGY SDN BHD PIHAK TERKILAN PANZANA ENTERPRISE SDN BHD

1. ) CHONG LEK ENGINEERING WORKS SDN. BHD. (BA-24C-42-05/2020) (Co. No.: 602149-A) 2. ) CHONG LEK ENGINEERING WORKS SDN. BHD. (Co. No.: 602149-A) 1. ) PFCE INTEGRATED PLANT AND PROJECT SDN. BHD. (Co. No.: 608921-V) 2. ) PFCE INTEGRATED PLAN

CT INDAH CONSTRUCTION SDN BHD (NO. SYARIKAT: 505419-A) BHL GEMILANG SDN BHD (NO. SYARIKAT: 484693-W)