Adjudication decisions under CIPAA 2012 are subject to limited review; allegations of procedural unfairness must be substantiated, and courts cannot reassess the merits of the adjudicator's findings.

A. Introduction

[1] On August 2024, Master Craft Group Sdn Bhd (Master Craft) had commenced an Adjudication Proceedings pursuant to the Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012) against Kemas Maju Sdn Bhd (Kemas Maju) to claim a sum of RM1,389,572.92 as the unpaid sum. The Adjudicator, Mr Wilfred Abraham, decided in favour of the Master Craft in his Adjudication Decision dated 7 November 2024 (AD).

[2] As a result of the AD, the followings were filed by the parties:

(i). OS No BA-24C-1-01/2025 (Suit 1) was filed by Master Craft to enforce the AD pursuant to s 28 of CIPAA 2012;

(ii). OS No BA-24C-54-12/2024 (Suit 54) was filed by Kemas Maju to set aside the AD pursuant to s 15 of CIPAA 2012;and

(iii). OS No BA-24C-56-12/2024 (Suit 56) was filed by Kemas Maju for Stay of Execution of the AD pursuant to s 16 of CIPAA 2012.

[3] Since there are 3 OS filed in relation to this AD, the parties agreed to having all the 3 OS heard together and for the decision to be delivered together. Since this is a cross suit between the parties, for ease of reference the parties will be referred to henceforth as Master Craft and Kemas Maju wherever applicable.

B. Brief Background

[4] By way of a Letter of Award dated 25 April 2023 (LOA), Master Craft was appointed by Kemas Maju as the sub-contractor for the building works (Project). The Project concerns the construction of houses in Kedah where Kemas Maju is the main contractor. Master Craft was subآ¬contracted by Kemas Maju to the works as follows:

i. The external works - constructing and installing the perimeter fencing;

ii. Clearing up works; and

iii. Related finishings works of the houses.

[5] Due to a non-payment for the works done by Master Craft, a Payment Claim dated 1 July 2024 was issued to Kemas Maju by Master Craft pursuant to the Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012). Kemas Maju responded with its Payment Response dated 11 July 2024.

[6] Subsequently, Master Craft had commenced Adjudication Proceedings via a Notice of Adjudication dated 7 August 2024. served on Kemas Maju on 12 August 2024. BMG on the other hand had not responded to the payment claim by any Payment Response to Juang.

[7] As the parties failed to agree on an adjudicator, the AIAC Director appointed Wilfred Abraham on 2 September 2024 as the Adjudicator. Following Master Craft's solicitors' letter on 13 September 2024 confirming the terms, he formally accepted the appointment via Form 6 on the same date.

C. Adjudication Proceedings

[8] An Adjudication Claim together with supporting documents were emailed on 29 September 2024 to Kemas Maju. Kemas Maju in turn had emailed its Adjudication Response to Master Craft on 10 October 2024. Master Craft emailed its Adjudication Reply on 17 October 2024.

[9] Via both the Payment Claim and the Adjudication Claim, Master Craft's claim against Kemas Maju for the balance of payment owed for works done is for the sum of RM1,389,572.92.

[10] Kemas Maju on the other hand via its Payment Response and Adjudication Response admitted a sum of RM501.096.16 only as being owed to Master Craft upon setting off the Debit Note