2013 MarsdenLR 230

HIGH COURT SABAH & SARAWAK TAWAU
SAMSURI BAHARUDDIN & ORS – Appellant
Versus
BORNEO SAMUDERA SDN BHD – Respondent
[Originating Summons Case No: T-24-45-2011]

Arbitration awards are binding, and the court will not intervene unless there is a manifest error in the award, particularly regarding issues of legality within statutory definitions.

Headnote:(A) Arbitration Act 2005 - Section 42 - Sabah Land Ordinance - Sections 4, 17(1), and 88 - The application sought determination of several questions regarding the legality and status of agreements relating to land. The Tribunal ruled that the agreements were lawful and that 'draft native titles' did not equate to 'Native Titles' under the Ordinance. (Paras 3, 16-21)

(B) The court affirmed the principle that a question of law must arise from an award, ensuring limited grounds for interfering with arbitration decisions. (Paras 12-15)

Facts of the case:
The dispute involved 813 smallholders and the defendant regarding land development agreements initiated in the late 1990s, leading to a referral for arbitration. (Paras 2-4)

Findings of Court:
The Tribunal found that draft titles were not recognized as Native Titles under the Sabah Land Ordinance as they were never registered. The Tribunal’s findings regarding powers of attorney were also upheld. (Paras 10, 17-21)

Issues: The court considered whether draft native titles have the status of Native Titles and the jurisdiction of the Tribunal over Native Customary Rights. (Paras 9, 21)

Ratio Decidendi: The court emphasized that the Tribunal’s reasoning adhered to the statutory definitions and requirements for land titles. It reinforced a non-interference policy in arbitration awards unless manifest errors are present. (Paras 10, 15)

Result: The originating summons was dismissed with costs of RM5,000.