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2025 MarsdenLR 4451
HIGH COURT MALAYA KUALA LUMPUR
GIIB HEALTHCARE PRODUCTS SDN BHD – Appellant
Versus
GLOMAXES LATEX GLOVE MANUFACTURER SDN BHD & ANOTHER CASE – Respondent
[Originating Summon No: WA-24C-153-10/2024 & WA-24C-162-10/2024]
The court upheld the adjudication decision, ruling that the adjudicator acted within jurisdiction and maintained procedural fairness, dismissing the application to set it aside.
Headnote:(A) Construction Industry Payment And Adjudication Act, 2012 - Sections 15(b), 15(d), and 28 - Adjudication Decision - Application to set aside adjudication decision on grounds of denial of natural justice and excess of jurisdiction - Court found no merit in the grounds raised by the applicant, dismissing the application with costs - Enforcement of adjudication decision allowed as no impediments existed. (Paras 6, 40, 46, 48)
(B) Natural Justice - The principles of natural justice require that both parties be accorded the opportunity to present their case - The adjudicator's conduct must be assessed to ensure procedural fairness was upheld. (Paras 10, 11)
(C) Excess of Jurisdiction - The adjudicator's jurisdiction is limited to matters raised in the payment claim and response - Claims not adhering to stipulated payment milestones do not constitute grounds for setting aside the adjudication decision. (Paras 25, 28)
Facts of the case:
The case involves two originating summonses where GIIB Healthcare sought to set aside an adjudication decision favoring Glomaxes for unpaid sums related to a construction project, while Glomaxes sought to enforce that decision. (Paras 1-4)
Findings of Court:
The court found that GIIB Healthcare failed to substantiate its claims of denial of natural justice and excess of jurisdiction, leading to the dismissal of its application. The enforcement of the adjudication decision was permitted. (Paras 40, 46)
Issues: The main issues included whether the adjudicator acted in excess of jurisdiction and whether there was a denial of natural justice in the adjudication process. (Paras 6, 40)
Ratio Decidendi: The court ruled that the adjudicator acted within jurisdiction and upheld the principles of natural justice, emphasizing that procedural fairness was maintained throughout the adjudication process. (Paras 10, 40)
Result: OS 153 dismissed; OS 162 allowed.
JUDGMENT
Introduction
[1] By Originating Summons No: WA-24C-153-10/2024 ("OS 153"), GIIB Healthcare Products Sdn Bhd ("GIIB Healthcare") is applying under ss 15(b) and (d) of the Construction Industry Payment And Adjudication Act, 2012 ("Act") to set aside an Adjudication Decision dated 7 November 2022 made in Adjudication Reference No: AIAC/D/ADJ-4372-2022 ("Adjudication Decision") which Glomaxes Latex Glove Manufacturer ("Glomaxes") obtained against it.
[2] By Originating Summons No: WA-24C-162-10/2024 ("OS 162"), Glomaxes is applying under s 28 of the Act to enforce the Adjudication Decision against GIIB Healthcare as if it is a judgment or order of the High Court .
[3] As a matter of prudence, I heard both Originating Summonses together. This Judgment is thus on both.
[4] Further as a matter of prudence, I will decide OS 153 first and then only OS 162, for the simple reason that, if the Adjudication Decision is set aside, then there will be nothing to enforce.
Salient Facts
[5] The salient facts are as follows:
5.1 On 25 February 2021, Glomaxes issued a Quotation Ref. No. GGMSB-GLGM-QT-250221-1 ('Quotation') to GIIB Gloves Manufacturer Sdn Bhd ('GGM'). Pursuant to clause B.4(f) of the Quotation, payment should be made within 14 days.
5.2 On 1 March 2021, GGM issued Purchase Order No. P02020/001 ('Purchase Order') to appoint the Applicant as the contractor to complete the project known as "Turn-key Project Dual Process Double Former On-line Powder Free Glove Dipping Line" ('Project') for the contract sum of RM42,780,000.00.
5.3 On 16 July 2021, by a Deed of Assignment ('Deed of Assignment'), GGM assigned that contract to GIIB;
5.4 Between 15 January 2022 and 25 February 2022, Glomaxes submitted its progress claims for works done via invoices No. GLGM-GIIB- 150122 dated 15 January 2022 No GLGM-GIIB-250222 dated 25 February 2022 (collectively, "Invoices") claiming the sum of RM14,973,000.00 as the value of works done under the Project;
5.5 When GIIB Flealthcare did not pay the outstanding sums, on 21 June 2022 issued a Payment Claim to GIIB Healthcare under s 5 of the Construction Industry Payment and Adjudication Act 2012 ("Act");
5.6 On 4 July 2022, GIIB Healthcare issued its Payment Response under s 6 of the Act;
5.7 Glomaxes then issued a Notice of Adjudication dated 14 July 2022 and, after the Adjudicator was appointed, on 5 September 2022 Glomaxes issued its Adjudication Claim GIIB Healthcare, which was then followed by GIIB Healthcare's Adjudication Response and Glomaxes Adjudication Reply on 19 September 2022 and 26 September 2022 respectively.
5.8 On 7 November 2022 the Adjudicator delivered his Adjudication Decision, directing GIIB Healthcare to pay Glomaxes within 2 weeks from the date of the Adjudication Decision:
(a) The sum of RM 14,393,877.80 ("Adjudicated Amount");
(b) Simple interest at a rate of 5% per annum on the sum of RM10,115,877.80 calculated from 29 January 2022 to the date of payment;
(c) Simple Interest at a rate of 5% per annum on the sum of RM4,278,000.00 calculated from 11 March 2022 to the date of full payment.
(d) Costs in the sum of RM111,289.00.
5.9 When GIIB Healthcare did not pay the Adjudicated Amount, interest or costs, on 29 December 2022 Glomaxes filed Shah Alam High Court Companies Winding-Up Petition No: BA-28NCC- 707-12/2022 ("Winding-Up Petition") against GIIB Healthcare;
5.10 On 19 January 2023 GIIB Holdings Berhad ("GIIB Holdings") filed Shah Alam High Court Originating Summons No. BA-28JM-1- 01/2023 ("Judicial Management Application") to put, inter alia, GIIB Healthcare under judicial management pursuant to ss 404 and 405 of the Companies Act 2016. However, that Judicial Management Application was dismissed with costs on 9 October 2023;
5.11 On 7 October 2024 GIIB filed OS 153; and
5.12 15 October 2024 Glomaxes filed OS 162.
OS 153
Section 15 Of The Act
[6] In OS 153, GIIB Healthcare invokes ss 15(b) and (d) of the Act for setting an adjudication decision aside. Section 15 of t
