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2021 MarsdenLR 2066

HIGH COURT MALAYA KUALA LUMPUR
ECONPILE (M) SDN BHD – Appellant
Versus
ASM DEVELOPMENT (KL) SDN BHD – Respondent
[Application For Execution No: WA-36-5-01/2020]



Petitioner Advocates:Rohan Arasoo Jeyabalah,Amy Hiew Kar Yi,Pan Yan Teng ,Respondent Advocate: Annesha Mary Koshy

The court upheld that a party must demonstrate sufficient cause to set aside enforcement orders and cannot request relief while failing to comply with prior judicial directives.

Headnote:(A) Construction Industry Payment and Adjudication Act 2012 – Section 28 – Appeals against decisions of Deputy Registrar – ASM's applications to set aside Writ of Seizure and Sale and Amended Prohibitory Order were dismissed – Court confirmed that ASM failed to show sufficient cause for release of said Land and upheld the Enforcement Order obtained by Econpile, asserting ASM did not demonstrate adequate justification nor special circumstances in its appeal – The principle of 'coming to court with clean hands' was emphasized in adjudicating the justification – The court allowed the Order for Sale and upheld the reserve price set by Deputy Registrar. (Paras 25, 29, 39, 56)

Facts of the case: Two appeals were lodged by ASM against the decisions involving the enforcement of adjudication orders favoring Econpile, following ASM's failures to pay the determined debt and disputes related to a property asset. Recovered amounts were insufficient to satisfy the full judgment debt, prompting execution measures. (Paras 1-17)

Findings of Court: The court found that ASM had not demonstrated a sufficient case to warrant the setting aside of the Prohibitory Order and retained the enforcement measures based on previous orders and actions. (Paras 29, 39)

Issues: The appeals centered on whether the Prohibitory Order should be set aside and if a stay of execution should be granted based on alleged financial imbalance and ongoing arbitration. (Paras 1, 33)

Ratio Decidendi: The court reasoned that determination of 'sufficient cause' required a careful balance of interests; ASM's failure to comply with prior orders invalidated its claims for relief. The priorities established by Econpile’s rights were reaffirmed as compelling. (Paras 29, 56)

Result: Appeals dismissed with costs. (Paras 39, 56)

JUDGMENT

Aliza Sulaiman J:

Introduction

[1] Two appeals by the Execution Debtor/ Defendant ('ASM') against the decisions by the learned Deputy Registrar ('DR') were heard before this Court, namely-

(a) the decision on 6 January 2021 where ASM's amended application in encl 47 was dismissed with costs of RM4,000.00. In the said application, which was filed on 13 October 2020, ASM prayed for an order-

(i) to set aside the Writ of Seizure and Sale dated 28 January 2020 ('WSS') and the Amended Prohibitory Order ('PO') dated 18 June 2020;

(ii) subject to the orders in subpara (i) above, the land held under Hakmilik No PN51515, Lot 20003 s S Bandar Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur ('said Land') is released according to O 47, r 6(k) of the Rules of 2012 ('RoC 2012'); and

(iii) to stay the execution related to the WSS and Amended PO until the disposal of ASM's appeal at the Court of Appeal against the decision of this Court on 29 November 2019 in allowing the application by the Execution Creditor/ Plaintiff ('Econpile') to enforce the Adjudication Decision dated 21 June 2019 under s 28 of the Construction Industry Payment and Adjudication Act 2012 ('CIPAA 2012') or pending the disposal of the arbitration proceeding between the parties at the Asian International Arbitration Centre ('AIAC'), whichever is later; and

(b) the decision on 11 March 2021 which allowed Econpile's application in encl 18 which was filed on 4 August 2020 for-

(i) an order for sale of the said Land by public auction;

(ii) the public auction to be held on 24 May 2021 at 9.00 am. at the High Court Kuala Lumpur; and

(iii) the reserve price for the said Land be fixed at RM250 million.

[2] Having considered the related cause papers and written submissions filed and the brief oral submissions by learned counsels appearing for the parties, the Court had dismissed the appeals on 18 March 2021 with costs of RM 3,500.00, subject to allocatur, and on 3 May 2021 with costs of RM3,000.00, subject to allocatur, respectively.

[3] These are my full grounds for the decisions in both appeals.

Brief Facts

[4] The facts leading to the dispute between the parties have been set out by this Court in Econpile (M) Sdn Bhd v. ASM Development (KL) Sdn Bhd and another summons.

[5] To recap in brief, by a Letter of Award dated 26 September 2016, ASM had appointed Econpile as its contractor to undertake Work Package 1: Diaphragm Wall, Contiguous Bored Pile, Earthworks, Piling Works And Basement Structure Works (Basement 2 to LG1) for a project known as "Cadangan Pembangunan Bercampur 69 Tingkat Yang Mengandungi 7 Blok Pangsapuri Servis (4214 Unit), iaitu: Blok A - 58 Tingkat (678 Unit), Blok B - 58 Tingkat (618 Unit), Blok C - 58 Tingkat (560 Unit), Blok D - 58 Tingkat (678 Unit), Blok E - 58 Tingkat (618 Unit), Blok G - 58 Tingkat (502 Unit), 8 Tingkat Podium Tempat Letak Kereta, 7 Tingkat Ruang Perniagaan (Aras 1 -7), 1 Tingkat Aras Kemudahan (Aras 9), 4 Tingkat Tempat Letak Kereta (Aras LG1, Basement 2 & Basement 1) Di Atas Lot 36190, Mukim Petaling Kuala Lumpur' ('said Project') for an original contract sum of RM280 million.

[6] Eventually, disputes arose between the parties and Econpile referred the matter to adjudication under the CIPAA 2012 with the outcome being in Econpile's favor.

[7] Econpile had simultaneously commenced arbitration proceedings by way of a Notice of Arbitration dated 18 March 2019. ASM disputed the sums claimed in the said Notice and subsequently issued its Notice of Arbitration dated 17 May 2019. The hearing dates have been fixed beginning in the month of March 2021 and spanning until September 2021.

[8] Econpile then filed a Notice of Application ('NoA') under Originating Summons No WA-24C-113-07/2019 to enforce the Adjudication Decision dated 21 June 2019 and the Supplementary Decision dated 7 August 2019 ('Adjudication Decisions') pursuant to s 28 of the CIPAA 2012. This Court allowed the said application on 29 November 2019 and ordered ASM to pay Econpile the Adju


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