Alauddin Mohd Sheriff JCA:

[1] This appeal against the decision of the High Court Kuala Lumpur arises out of a building contract in PAM Form (exh S1 in encl 1). The contract was entered into between the respondent (plaintiff) as employer and the appellant (defendant) as the main contractor for a hotel and hotel apartment project in Port Dickson. The articles of agreement and conditions of contract are set out in exh S1 to Sum Weng Kuan's affidavit of 8 September 1999. The conditions of contract contain an arbitration cl 34(1), which states that all disputes shall be referred to arbitration. (see p 62 encl 1).

[2] On 10 March 1998, the appellant determined its employment as contractor pursuant to cl 26(1)(a) without prejudice to its other remedies for non-payment of certified sums amounting to RM6,992,831.95. Then on 11 March 1998, the appellant served a statutory notice under s 218 of the Companies Act on the respondent in respect of the certified sums of RM6,992,831.95. The respondent contested the validity of the appellant's termination notice by letter dated 12 March 1998 and urged the appellant to continue and complete the works. However, by a letter dated 8 April 1998 th