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COURT OF APPEAL PUTRAJAYA
VIEW ESTEEM SDN BHD – Appellant
Versus
BINA PURI HOLDINGS BHD – Respondent
[Civil Appeal No: W-02(C)(A)-1507-09-2015]



The adjudicator's jurisdiction under the Construction Industry Payment And Adjudication Act 2012 is strictly confined to issues raised in payment claims and responses, emphasizing procedural compliance.

Headnote:Statute Analysis: The Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012) was invoked to resolve disputes arising from construction contracts. The factual background indicates the appellant challenged the adjudicator's jurisdiction based on Section 41 among other applications. Court Findings: The learned trial judge dismissed the appellant's applications, affirming the validity of the adjudication award and allowing the respondent's enforcement application.

Issues: The court framed the questions around jurisdictional challenges and compliance with procedural requirements under CIPAA.

Ratio Decidendi: The court emphasized that the adjudicator's jurisdiction is strictly defined within the CIPAA framework, citing the need for strict compliance with the act’s provisions.

Result: The appeal was dismissed, affirming the enforcement of the adjudication award dated 16 June 2015.

Table of Content
1. appeal based on jurisdictional challenge under cipaa. (Para 1 , 2 , 3)
2. arguments surrounding jurisdiction, natural justice, and enforcement. (Para 5 , 8 , 11)
3. emergence of payment claims and responses under cipaa. (Para 12 , 13)
4. court's observations on the adjudicator's limitations. (Para 20 , 21)
5. final decision dismissing the appeal. (Para 34 , 35)
Hamid Sultan Abu Backer JCA:

[1] The appellant/employer in a construction contract relating to Construction Industry Payment And Adjudication Act 2012 (CIPAA 2012) appeals against the decision of the learned High Court Judge in respect of three applications made by the parties relevant to CIPAA 2012, where the decisions were in favour of the respondent/contractor/employee.

[2] For purpose of convenience, the appellant/employer will be referred to as View Esteem and the respondent/contractor/employee will be referred to as Bina Puri.

[3] The learned trial judge had heard the three applications in the Court below:

(i) the first application was purportedly made to challenge s 41 of CIPPA 2012 by View Esteem with a view to challenge the jurisdiction of the adjudicator. The said section reads as follows:

"41. Savings

Nothing in this Act shall affect any proceedings relating to any payment dispute under a construction contract which had been commenced in any Court or arbitration before the coming into operation of this Act."

(ii) the second application was Bina Puris application, seeking registration and enforcement of the award as a judgment of the Court pursuant to s 28 of CIPAA 2012. The said section reads as follows:

"28. Enforcement of adjudication decision as judgment

1. A party may enforce an adjudication decision by applying to the High Court for an order to enforce the adjudication decision as if it is a judgment or order of the High Court.

2. The High Court may make an order in respect of the adjudication decision either wholly or partly and may make an order in respect of interest on the adjudicated amount payable.

3. The order made under subsection (2) may be executed in accordance with the rules on execution of the orders or judgment of the High Court."

(iii) the third application was by View Esteem, to set aside and/or stay the award of the adjudication pursuant to ss 15 and 16 of CIPAA 2012. The said sections read as follows:

"15. Improperly Procured Adjudication Decision

An aggrieved party may apply to the High Court to set aside an adjudication decision on one or more of the following grounds:

a. The adjudication decision was improperly procured through fraud or bribery;

b. There has been a denial of natural justice;

c. The adjudicator has not acted independently or impartially; or

d. The adjudicator has acted in excess of his jurisdiction.

16. Stay of Adjudication Decision

1. A party may apply to the High Court for a stay of an adjudication decision in the following circumstances:

a. An application to set aside the adjudication decision under s 15 has been made; or

b. The subject matter of the adjudication decision is pending final determination by arbitration or the Court.

2. The High Court may grant a stay of the adjudication decision or order the adjudicated amount or part of it to be deposited with the Director of the KLRCA or make any other order as it thinks fit."

[4] The learned trial judge had written 80 pages judgment setting out the facts and law in meticulous detail. To save courts time, we do not wish to repeat what was said in the judgment save where necessary. This judgment must be read together with the High Courts judgment which has been reported in [2015] MLRHU 850 for comprehensiveness.

[5] In conclusion, the learned trial judge had dismissed both of View Esteems applications and allowed Bina Puris application to enforce the award. View Esteems Memorandum of Appeal reads as follows:

"1. The learned judge erred in law and fact in dismissing the Appellants application in Kuala Lumpur High Court Originating Summons No 24C-1906/2015 to declare the adjudi

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