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2025 MarsdenLR 4212

HIGH COURT MALAYA SHAH ALAM
KEMAS MAJU CONSTRUCTION SDN BHD – Appellant
Versus
MASTER CRAFT GROUP SDN BHD & OTHER CASE – Respondent
[Originating Summons No: BA-24C-54-12/2024 BA-24C-56-12/2024 & BA-24C-1-01/2025]



Petitioner Advocates:Phang Ting Hong,Tan Wei Sheng ,Respondent Advocate: Lim Zi-Han,Sean Ferdinand Ng

The court upheld the adjudicator's decision, finding no violations of natural justice or jurisdictional overreach, thus enforcing the adjudication decision under the CIPAA 2012.

Headnote:(A) Construction Industry Payment and Adjudication Act 2012 - Sections 15 and 28 - Adjudication decision in favor of claimant awarded RM1,389,572.92 with interest - Applications to set aside and stay execution of the adjudication decision dismissed. The court determined that the adjudicator acted within his jurisdiction and without bias, addressing all relevant claims. Kemas Maju's objections were unsubstantiated concerning natural justice and jurisdiction. The enforcement application was allowed, resulting in a total cost award of RM15,000. (Paras 11, 13, 32, 34-38, 50, 54, 76)

(B) Natural justice - The principle dictates that parties to adjudication must receive fair hearings. The court clarified that failure to meet procedural expectations does not automatically equate to a breach of this principle if all claims were considered. (Paras 34-39)

(C) Jurisdiction - The adjudicator's discretion concerning document submission and decision timelines is upheld as permissible under the Act. (Paras 56-66)

Table of Content
1. introduction to the dispute and its background. (Para 1 , 2 , 3 , 4 , 5)
2. details of the adjudication proceedings initiated by master craft. (Para 6 , 7 , 8 , 9 , 10 , 11)
3. outline of applications made by both parties. (Para 12 , 13 , 14 , 15 , 16)
4. summary of kemas maju's arguments against the adjudicator's decision. (Para 29 , 30 , 31)
5. court's analysis of the natural justice issues raised. (Para 32 , 34 , 35 , 36 , 38 , 39)
6. findings on the adjudicator's considerations and limitations. (Para 40 , 41 , 42 , 43 , 44 , 46)
7. court's position on jurisdictional challenges. (Para 49 , 52 , 53)
8. misapplication of previous case principles by kemas maju. (Para 57 , 58 , 62 , 64)
9. court's dismissal of kemas maju's stay application. (Para 68 , 69 , 70 , 71)
10. conditions for master craft's enforcement of the adjudication decision. (Para 74 , 75)
Sumathi Murugiah JC:

A. Introduction

[1] On August 2024, Master Craft Group Sdn Bhd (Master Craft) had commenced an Adjudication Proceedings pursuant to the Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012) against Kemas Maju Sdn Bhd (Kemas Maju) to claim a sum of RM1,389,572.92 as the unpaid sum. The Adjudicator, Mr Wilfred Abraham, decided in favour of the Master Craft in his Adjudication Decision dated 7 November 2024 (AD).

[2] As a result of the AD, the followings were filed by the parties:

(i). OS No BA-24C-1-01/2025 (Suit 1) was filed by Master Craft to enforce the AD pursuant to s 28 of CIPAA 2012;

(ii). OS No BA-24C-54-12/2024 (Suit 54) was filed by Kemas Maju to set aside the AD pursuant to s 15 of CIPAA 2012;and

(iii). OS No BA-24C-56-12/2024 (Suit 56) was filed by Kemas Maju for Stay of Execution of the AD pursuant to s 16 of CIPAA 2012.

[3] Since there are 3 OS filed in relation to this AD, the parties agreed to having all the 3 OS heard together and for the decision to be delivered together. Since this is a cross suit between the parties, for ease of reference the parties will be referred to henceforth as Master Craft and Kemas Maju wherever applicable.

B. Brief Background

[4] By way of a Letter of Award dated 25 April 2023 (LOA), Master Craft was appointed by Kemas Maju as the sub-contractor for the building works (Project). The Project concerns the construction of houses in Kedah where Kemas Maju is the main contractor. Master Craft was subآ¬contracted by Kemas Maju to the works as follows:

i. The external works - constructing and installing the perimeter fencing;

ii. Clearing up works; and

iii. Related finishings works of the houses.

[5] Due to a non-payment for the works done by Master Craft, a Payment Claim dated 1 July 2024 was issued to Kemas Maju by Master Craft pursuant to the Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012). Kemas Maju responded with its Payment Response dated 11 July 2024.

[6] Subsequently, Master Craft had commenced Adjudication Proceedings via a Notice of Adjudication dated 7 August 2024. served on Kemas Maju on 12 August 2024. BMG on the other hand had not responded to the payment claim by any Payment Response to Juang.

[7] As the parties failed to agree on an adjudicator, the AIAC Director appointed Wilfred Abraham on 2 September 2024 as the Adjudicator. Following Master Craft's solicitors' letter on 13 September 2024 confirming the terms, he formally accepted the appointment via Form 6 on the same date.

C. Adjudication Proceedings

[8] An Adjudication Claim together with supporting documents were emailed on 29 September 2024 to Kemas Maju. Kemas Maju in turn had emailed its Adjudication Response to Master Craft on 10 October 2024. Master Craft emailed its Adjudication Reply on 17 October 2024.

[9] Via both the Payment Claim and the Adjudication Claim, Master Craft's claim against Kemas Maju for the balance of payment owed for works done is for the sum of RM1,389,572.92.

[10] Kemas Maju on the other hand via its Payment Response and Adjudication Response admitted a sum of RM501.096.16 o

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