Mohtar Abdullah FCJ:

In the present appeal, the question posed to this court is "whether the function to be served by an entry of appearance in one statute ie, the Rules of the High Court 1980 is the same as the function to be served by the words 'steps in the proceedings' in s. 6 of the Arbitration Act."

In Sime Axa Assurance Berhad v. Interscope Versicherung Sdn Bhd, Federal Court Civil Appeal No. 02-08-2000(W) (hereinafter "Sime Axa Assurance"), a similar question was posed before a different panel of this court, viz, "whether an entry of an unconditional appearance constitutes a step in the proceedings within the meaning of s. 6 of the Arbitration Act 1952". That question was answered in the negative. Unfortunately, there is no written judgment delivered.

The factual background of the present appeal can be briefly narrated. The dispute between the appellant and the 1st respondent centred upon an Earthworks Contract dated 30 October 1996 which contained an arbitration clause as follows:

Arbitration

(a) If any dispute or differences shall arise between the client and the Earthworks Contractor, either during the progress or after completion of the works, or after the term