Category Archives: Article

Restricted from counterclaiming based on adjudication decision?

Our Foo Joon Liang and Tasha Lim Yi Chien explore whether parties are restricted from counterclaiming based on the adjudication decision awarded against them. Introduction It is common for parties to refer their construction disputes to adjudication under the Construction Industry Payment and Adjudication Act 2012 (CIPAA). However, in a situation where one half of the…

Unravelling validity of tenancy agreement that contravenes land’s express condition

Our Tan Min Lee and Lee Hui Juan discuss the Federal Court’s decision in Singma Sawmill Co Sdn Bhd v Asian Holdings (Industrialised Buildings) Sdn Bhd. In Tan Sri Dato’ Lim Cheng Pow v Bellajade Sdn Bhd & Another Appeal,(1) the key issue was whether a tenancy for the commercial use of land, where the express condition was…

Failure to mediate before arbitration is question of admissibility, not jurisdiction

Our Foo Joon Liang and Tasha Lim discuss Malaysian courts’ approach in dealing with the issue whether the failure to mediate before arbitration is question of admissibility rather than jurisdiction. Introduction The UK Commercial Court recently considered whether a party’s failure to comply with a pre-condition that parties mediate before referring the dispute to arbitration…

“Liable jointly and severally” – what is the implication?

If you have obtained a judgment in your favour against several judgment debtors but there is no mention in the judgment that they are liable jointly and severally for the judgment sum, what is your right against the debtors when it comes to enforcement of the judgment? This was the issue canvassed before the Federal Court in Lembaga Kumpulan Wang Simpanan Pekerja v Edwin Cassian Nagappan.

Interpretation of Statute & Contract: Apex Court favours “Commerciality” over “Illegality”

In Maple Amalgamated Sdn Bhd v Bank Pertanian Malaysia Bhd , the single specified issue before the Federal Court of Malaysia was whether an Islamic banking facility known as Bai Bithaman Ajil transaction is invalid for violating section 214A of the National Land Code. In dealing with that specific issue regarding BBA, the Federal Court also made broader pronouncements on the applicable legal principles when the Court is asked to invalidate a commercial transaction. The latter would have a much wider implication in the commercial world.

Adjudicator is Bias for Unreasonable Deadlines & Failure to Account for MCO Restrictions

Whilst an adjudicator has wide discretionary powers under the Construction Industry Payment and Adjudication Act 2012, can such discretionary power disregard or bypass the restrictions provided in the Prevention and Control of Infectious Diseases (Measures Within Infected Local Areas) Regulations 2020 [P.U. (A) 91/2020] more commonly known as the ‘Movement Control Order’?

The High Court upon scrutinising the adjudicator’s conduct in Itramas Technology Sdn Bhd v Savelite Engineering Sdn Bhd and other cases held that there was actual bias by the Adjudicator for amongst others, failing to give effect to the MCO.

Winding up petition based on adjudication decision under CIPAA – Court of Appeal reaffirms Likas Bay

Where a party has obtained an adjudication decision in its favour, that party may seek to bring a winding up petition premised on that adjudication decision. Darryl Goon J (as he then was) in ASM Development (KL) Sdn Bhd v Econpile (M) Sdn Bhd previously decided that an injunction may nevertheless be issued to restrain the presentation of such a petition. This has been discussed in an earlier article .

That article looked at two decisions of the High Court made subsequent to ASM, namely, Maju Holdings Sdn Bhd v Spring Energy Sdn Bhd and, RZH Setia Jaya Sdn Bhd v Sime Darby Energy Solutions Sdn Bhd. In the latter decision, the High Court adopted and agreed with the dictum of Darryl Goon J (as His Lordship then was) in ASM.

RZH Setia recently came up for appeal before the Court of Appeal, where the Court of Appeal considered the central question of whether the High Court had properly exercised its discretion in granting the Fortuna injunction sought by RZH Setia.