A court must stay proceedings if a matter falls within an arbitration agreement unless the agreement is void; arbitration clauses should be broadly constructed to encompass related disputes.

[1] In this action, the Plaintiff, as "contractor", has sued the Defendant, who is defined in the relevant contract as "the purchaser" for payment in respect of the delivery of a certain quantity of Deacidified Palm Oil and Catalyst Resins and the processing fees in respect thereof, totalling a sum of over RM804,123.10. The relevant contract is the "Engineering, Procurement, Construction and Commissioning Contract" ("EPCC Contract") dated 25 July 2007, which, according to the Plaintiff, is basically for the construction, completion and commissioning of a biodiesel project for use of 250,000 TPY Biodiesel and 27,308 TPY Technical Grade Glycerine Production Plant at Kuantan Port.

Scope Of Works Under EPCC Contract

[2] The scope of the "Works" under the EPCC Contract is further defined in Clause 13.1 of the Contract, reproduced below:

"13.1 Works to be Performed

Except as otherwise expressly set forth in this Contract, the Contractor shall perform or cause to be performed all the Works, on a fixed price lumpsum basis in accordance with the provision of this Contract including:

(i) all engineering, design, procurement and manufacturing required for a completely engineered Biodiesel Project;

(ii) Transportation of plant & equipment up to Site, port of entry clearance and handling works in Malaysia required in connection with the completion of the Biodiesel Project;

(iii) construction infrastructure works, civil and structural construction, mechanical and electrical erection and installation works and commissioning, start-up and testing of the Biodiesel Project, including obtaining the relevant licensing and Consents;

(iv) provision of all necessary labour, construction fuels, chemicals, utilities, tools, Contractor's Equipment, supplies and other consumables and works (other than materials, equipment and supplies provided by Purchaser's suppliers or Purchaser all as outlined in Clause 11.8); and

(v) making good any defects or deficiencies in the Works in accordance with the obligation of the Contractor pursuant to Clause 36 hereof.

The Contractor shall be responsible for completing the Works and achieving the Final Performance Acceptance by the agreed Time for Completion and demonstrating the capability of the Biodiesel Project to achieve the Performance Guarantees failing which the Contractor shall be liable for and pay to the Purchaser applicable liquidated damages for delay and performance shortfall pursuant to Clause 34 and 35, as the case may be."

Plaintiff's Position: Present Dispute Not Falling Under EPCC Contract

[3] The present dispute for which the Plaintiff has filed this claim, according to the Plaintiff, does not fall within the scope of the EPCC Contract, and concerns the delivery of that abovestated quantity of Deacidified Palm Oil and Catalyst Resin to the Defendant's sub-contractor, ie Institute Francais Du Petrol in France.

[4] The relevant invoices are appended as exhibits LCW-2 and LCW-3 to the Affidavit in Reply filed by the Plaintiff affirmed by Loh Chee Wen. In both invoices the EPCC Contract is referred to in the heading under the description "Project".

Application For Stay Under Section 10 AA 2005

[5] The Defendant has filed an application to stay the proceedings under s 10 of the Arbitration Act 2005 , arguing that the subject matter of the present claim is caught by the arbitration clause in the EPCC Contract. The arbitration clause is Clause 50, in particular Clause