Malaysia Case Law: Decisions & Judgments | LexChat

Malaysia Case Law

Arbitration costs and deposits
  • 21 Oct 2021

    LION PACIFIC SDN BHD PESTECH TECHNOLOGY SDN BHD

    Citation
    BA-22NCVC-85-02/2021 (Mahkamah Tinggi)
    Court
    High Court
    Case number
    BA-22NCVC-85-02/2021 (Mahkamah Tinggi)

    The court held Clause 16 is a valid arbitration agreement and the dispute (including allegations of fraudulent claims arising from performance of the Sub-Contract) falls within its scope; section 10 mandates a stay where requirements are met; the court will not order the Defendant to pay the arbitration deposit because deposit and allocation of arbitration costs fall within the tribunal's and AIAC Director's jurisdiction; Plaintiff may advance the deposit to prevent stalling; accordingly the Defendant's stay application is allowed and proceedings are referred to arbitration.