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HIGH COURT MALAYA PENANG
WABINA CONSTRUCTIONS & ENGINEERING SDN BHD – Appellant
Versus
LDE PROJECT SDN BHD & ANOTHER CASE – Respondent
No, the court did not grant a stay of the adjudication decision.
The court dismissed Wabina's Stay Application under Enclosure 4 in Originating Summons No. PA-24C-3-02/2023 (OS 3), which sought a stay pursuant to ss 16(1)(a) and (b) of the Construction Industry Payment and Adjudication Act 2012 ("CIPAA") pending disposal of OS 3 and the related arbitration proceedings. (!) (!) (!) (!) (!) (!) (!) (!) (!)
Although an ad interim stay was granted on 10 March 2023 pending disposal of OS 3, this was temporary and the final decision on 30 June 2023 dismissed the Stay Application in full, finding no special circumstances warranted a stay despite concurrent arbitrations. (!) (!) (!) (!)
The court emphasized that adjudication decisions are binding unless set aside (also dismissed), and the existence of arbitration proceedings does not automatically justify a stay. (!) (!) (!) (!) (!) (!) (!) (!) (!) (!)
| Table of Content |
|---|
| 1. overview of related suits and applications. (Para 1 , 2 , 5) |
| 2. background facts of the contractual relationship. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13) |
| 3. grounds for wabina's application to set aside the decision. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25) |
| 4. court's findings on wabina's defense. (Para 28 , 29 , 30 , 31 , 32 , 33) |
| 5. court's reasoning on arbitration's effect on adjudication. (Para 46 , 47 , 48 , 49 , 50 , 51) |
| 6. final decision and costs ordered. (Para 78) |
Introduction
[1] There are 2 related suits before me. Namely:
(a) Originating Summons No PA-24C-3-02/2023 ("OS 3") filed by Wabina Constructions & Engineering Sdn Bhd ("Wabina") on 4 February 2023. The is an application by Wabina to set aside ("Setting Aside Application") the Adjudication Decision dated 29 December 2022 ("Adjudication Decision") delivered by the Adjudicator Sr. John Wong @ Wong Weng Long ("Adjudicator") in an Adjudication No ADJ-4431-2022 ("Adjudication Proceeding"). OS 3 was made under ss 15 and 27 of the Construction Industry Payment and Adjudication Act 2012 ("CIPAA");
(b) Originating Summons No PA-24C-4-02/2023 ("OS 4") filed by LDE Projec
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