Low Hop Bing JCA:

Appeal

[1] This appeal was lodged against the decision of the Johor Bahru High Court in dismissing the appellant's ("the defendant's") summons in chambers which sought, inter alia, an order that the respondent's ("the plaintiff's") claim for RM334,273.37 be stayed and referred to arbitration.

[2] On 6 July 2009, we allowed the defendant's appeal. Our grounds are set out below.

Factual Background

[3] The factual background is simple and straightforward.

[4] The plaintiff's claim consists of two separate causes of action, based on two different sub-contracts awarded by the defendant, viz:

(1) Letter of award dated 4 June 2004 ("the June contract") for the construction of two show units of double-story semi-detached houses and one unit of sales pavilion; and

(2) Letter of award dated 19 August 2004 ("the August contract") for external sewerage works.

[5] The defendant is the main contractor of Redez Properties Sdn Bhd ("the employer"). The defendant had in turn appointed the plaintiff as its sub-contractor

[6] Pursuant to the two sub-contracts, the plaintiff prays for the total sum of RM445,843.29, of which a sum of RM334,273.37 is for the June contract; while the bala