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2025 MarsdenLR 1943

HIGH COURT MALAYA GEORGETOWN
FOSHAN CITY SHUNDE DISTRICT BONKE KITCHEN & SANITARY INDUSTRIAL CO LTD – Appellant
Versus
LIM KIAN AIK – Respondent
[Originating Summons No: PA-24NCVC-410-04-2024]



Petitioner Advocates:Chan Szu Fu,Chew Zhun Feng ,Respondent Advocate: Ramkarpal Singh,Tang Sueh Jing

Failure to comply with mandatory requirements under the Arbitration Act for recognizing an arbitration award renders the order null and void.

Headnote:(A) Arbitration Act 2005 - Sections 38 and 39 - Application for recognition and enforcement of arbitration award - Court ruled that applicant failed to fulfill mandatory requirements of producing the original arbitration agreement or a certified translation - Non-compliance with procedural provisions rendered the Order null and void. (Paras 21, 30, 43)

(B) Service of Cause Papers - Substituted service deemed improper due to discrepancies in address and failure to properly notify the Respondent of hearing date. (Paras 49, 53, 54)

Facts of the case:
The parties entered into a Joint Venture Agreement and Share Transfer Agreement in 2014, with disputes referred to arbitration in China, leading to a favorable award for the Applicant. Applicant's attempt to enforce the award was challenged by the Respondent on grounds of procedural non-compliance.

Findings of Court:
The Court declared the Order made on 8 August 2024 null and void due to non-compliance with the Arbitration Act requirements and struck out the Originating Summons with liberty to file afresh.

Issues: Main issues included procedural compliance under the Arbitration Act for recognition and enforcement of the arbitration award and the validity of service of cause papers.

Ratio Decidendi: The Court held that the mandatory requirements for producing a duly certified arbitration agreement or award were not met, making the previous Order invalid.

Result: The Court set aside the Order dated 8 August 2024 and struck out the Originating Summons with liberty to file afresh.

Table of Content
1. recognition and enforcement procedure for arbitration awards. (Para 1 , 3 , 9)
2. parties' arguments regarding compliance with arbitration law. (Para 11 , 12 , 19)
3. court's observations on affidavit procedures. (Para 17 , 21 , 31)
4. mandatory requirements under section 38 of the arbitration act. (Para 24 , 38 , 41)
5. court's conclusion to set aside the order. (Para 44 , 46)
Anand Ponnudurai J:

Introduction

[1] The parties had in 2014 executed a Joint Venture Agreement and a Share Transfer Agreement dated 29 April 2014 with an express provision that any disputes thereunder will be dealt with via arbitration in China in accordance with the laws of China. Disputes then arose, which were referred to arbitration, which led to an arbitration Award dated 30 June 2016 handed down in favour of the Applicant herein with the Respondent being ordered to make payments to the Applicant (hereinafter referred to as "the said arbitration Award").

[2] For the purposes of this application and judgment, the factual matrix of the dispute between the parties is immaterial.

[3] Relying then on s 38 of the Arbitration Act 2005 as well as O 69 r 8 of the Rules of Court 2012, the Applicant filed an application via this Originating Summons to have the said Arbitration Award recognised as binding and be enforced by entry as a judgment in terms of the Award.

[4] The Applicant thereafter obtained an Order for substituted service and subsequently filed an affidavit of service confirming service of the cause papers in accordance with the Order for substituted service.

[5] The Court then fixed the Originating Summons for hearing on 8 August 2024. Learned Counsel for the Applicant appeared on the hearing date and, with the aid of their skeletal submissions, submitted that all procedural requirements of s 38 of the Arbitration Act 2005 and O 69 of the Rules of Court 2012 had been complied with and sought an Order in terms of encl 1. The Applicant had on 7 August 2024 filed a supplemental affidavit ("Afidavit tambahan") annexing copies of the joint venture agreement and the share transfer agreement, which was in the Chinese language with an uncertified English translation.

[6] Insofar as the said arbitration Award is concerned, a certified copy of the same in the English language has been attached to the affidavit in support of the Originating Summons.

[7] Based on the submission that all procedural requirements had been complied with, the Court granted Order in terms of the Originating Summons on 8 August 2024 and duly recognised and enforced the said arbitration Award.

[8] Despite the Court having made the Order on 8 August 2024, one week later, on 15 August 2024, learned Counsel for the Applicant strangely affirms and files a supplemental affidavit ("Afidavit tambahan"- encl 14) attaching again thereto copies of the joint venture and share transfer agreement but this time with a certified English translation and praying for an Order in terms of the Originating Summons in encl 1 (even though the Order had already been made the week before).

[9] Thereafter, on 17 December 2024, the Respondent appoints solicitors, Messrs Karpal Singh & Co which on the same date file encl 19 which was the Respondent's application for a declaration that the Order dated 8 August 2024 was invalid or alternatively to set the same aside pursuant to s 39 of the Arbitration Act 2005 and O 69 r 8(7)(a) of the Rules of Court 2012.

[10] Having heard learned Counsel with the aid of their written submissions, I had on 19 March 2025, granted the Respondent's application in encl 19 and declared the Order dated 8 August 2024 null and void and set it aside. The Court will hereinunder provide the reasons for doing so and also why I decided to consequently strike out encl 1 with liberty to file afresh.

The Parties' Respective Contentions/Submissions

The Respondent's Contentions/Submissions

[11] The Respondent in support of the application in encl 19 contends/submits as follows:

a. that the A

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