Tengku Maimun Tuan Mat CJ:

Introduction

[1] The appeal before us arose from an arbitration proceedings between the parties, described below.

[2] The appellant is a company incorporated under the law of Germany and has a last known business address in Germany. The appellant has no business presence in Malaysia.

[3] The 1st and the 4th respondents are companies incorporated under the law of Malaysia. The 2nd and the 3rd respondents are Malaysian citizens and directors of the 1st and the 4th respondents.

[4] The 5th respondent is a citizen of Germany and is a named party to the arbitration proceedings.

Background Facts

[5] The appellant and the respondents had entered into a settlement agreement where they agreed to submit any disputes in relation to the settlement agreement for arbitration.

[6] Notwithstanding the agreement to arbitrate, the respondents commenced a suit at the Kuala Lumpur High Court No: S-22-129-2009 ("Suit 2009"). In Suit 2009, the respondents alleged, among others, that there was fraudulent misrepresentation by the appellant and/or its representatives, thereby inducing the respondents to enter into the settlement agreement.

[7] In view of the arbitration agreement