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HIGH COURT MALAYA KUALA LUMPUR
PINNACLE SUPREME SDN BHD – Appellant
Versus
DSG PROJECT MALAYSIA SDN BHD – Respondent
Yes, the High Court granted a conditional stay of the adjudication decision pending disposal of the arbitration proceedings under s 16(1)(b) of the CIPAA. (!) (!) (!) (!) (!) (!) (!) (!) (!) (!)
The stay was ordered on these specific terms: - Pinnacle to pay RM3,500,000.00 into DSG's solicitor's stakeholder account by 15 May 2021. (!) - Pinnacle to pay the balance of the adjudicated sum (including interest and costs) into the same account by 15 August 2021. (!) - Automatic lapse of the stay if payments defaulted as specified. (!) (!) - Pinnacle to pay DSG's costs of RM2,500.00. (!)
This balanced the discretionary nature of s 16 CIPAA, the sizeable adjudicated sum (over RM7 million), and risks to both parties, without finding clear errors in the decision or insolvency precluding enforcement. (!) (!) (!) (!) (!) (!) (!) (!) (!)
JUDGMENT
Introduction
[1] This is an application for stay of an adjudication decision made under the Construction Industry Payment and Adjudication Act 2012 ("CIPAA") pending final determination in arbitration proceedings.
[2] The Plaintiff is a private limited company involved in the construction business.
[3] The Defendant is likewise a private limited company involved in the construction business.
[4] For easy referencing, the parties will herein after be referred as Pinnacle and DSG respectively.
Background And Preliminary
[5] By a letter of award dated 30 August 2017 "(LOA"), Pinnacle appointed DSG to carry out and complete interior modification and building facade works ("Works") for the Citizen M Hotel in Kuala Lumpur ("Project").
[6] Besides the LOA, the parties agreed that the PAM Conditions of Contract (2006 edition) (Without Quantities) with modifications and addendum formed the contract between them ("Contract").
[7] There were disputes and differences that arose under the Contract in respect of the carrying out of the Works.
[8] As the result, DSG on 11 March 2019 served it payment claim under the CIPAA on Pinnacle claiming for the sum of RM15,305,039.34.
[9] P
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