Adjudicator’s wide discretionary powers under the Construction Industry Payment And Adjudication Act, 2012 cannot be used as a basis for setting aside decisions unless there are material breaches of natural justice or excess of jurisdiction.

Introduction

[1] By Originating Summons No: WA-24C-153-10/2024 ("OS 153"), GIIB Healthcare Products Sdn Bhd ("GIIB Healthcare") is applying under ss 15(b) and (d) of the Construction Industry Payment And Adjudication Act, 2012 ("Act") to set aside an Adjudication Decision dated 7 November 2022 made in Adjudication Reference No: AIAC/D/ADJ-4372-2022 ("Adjudication Decision") which Glomaxes Latex Glove Manufacturer ("Glomaxes") obtained against it.

[2] By Originating Summons No: WA-24C-162-10/2024 ("OS 162"), Glomaxes is applying under s 28 of the Act to enforce the Adjudication Decision against GIIB Healthcare as if it is a judgment or order of the High Court.

[3] As a matter of prudence, I heard both Originating Summonses together. This Judgment is thus on both.

[4] Further as a matter of prudence, I will decide OS 153 first and then only OS 162, for the simple reason that, if the Adjudication Decision is set aside, then there will be nothing to enforce.

Salient Facts

[5] The salient facts are as follows:

5.1 On 25 February 2021, Glomaxes issued a Quotation Ref. No. GGMSB-GLGM-QT-250221-1 ('Quotation') to GIIB Gloves Manufacturer Sdn Bhd ('GGM'). Pursuant to clause B.4(f) of the Quotation, payment should be made within 14 days.

5.2 On 1 March 2021, GGM issued Purchase Order No. P02020/001 ('Purchase Order') to appoint the Applicant as the contractor to complete the project known as "Turn-key Project Dual Process Double Former On-line Powder Free Glove Dipping Line" ('Project') for the contract sum of RM42,780,000.00.

5.3 On 16 July 2021, by a Deed of Assignment ('Deed of Assignment'), GGM assigned that contract to GIIB;

5.4 Between 15 January 2022 and 25 February 2022, Glomaxes submitted its progress claims for works done via invoices No. GLGM-GIIB- 150122 dated 15 January 2022 No GLGM-GIIB-250222 dated 25 February 2022 (collectively, "Invoices") claiming the sum of RM14,973,000.00 as the value of works done under the Project;

5.5 When GIIB Flealthcare did not pay the outstanding sums, on 21 June 2022 issued a Payment Claim to GIIB Healthcare under s 5 of the Construction Industry Payment and Adjudication Act 2012 ("Act");

5.6 On 4 July 2022, GIIB Healthcare issued its Payment Response under s 6 of the Act;

5.7 Glomaxes then issued a Notice of Adjudication dated 14 July 2022 and, after the Adjudicator was appointed, on 5 September 2022 Glomaxes issued its Adjudication Claim GIIB Healthcare, which was then followed by GIIB Healthcare's Adjudication Response and Glomaxes Adjudication Reply on 19 September 2022 and 26 September 2022 respectively.

5.8 On 7 November 2022 the Adjudicator delivered his Adjudication Decision, directing GIIB Healthcare to pay Glomaxes within 2 weeks from the date of the Adjudication Decision:

(a) The sum of RM 14,393,877.80 ("Adjudicated Amount");

(b) Simple interest at a rate of 5% per annum on the sum of RM10,115,877.80 calculated from 29 January 2022 to the date of payment;

(c) Simple Interest at a rate of 5% per annum on the sum of RM4,278,000.00 calculated from 11 March 2022 to the date of full payment.

(d) Costs in the sum of RM111,289.00.

5.9 When GIIB Healthcare did not pay the Adjudicated Amount, interest or costs, on 29 December 2022 Glomaxes filed Shah Alam High Court Companies Winding-Up Petition No: BA-28NCC- 707-12/2022 ("Winding-Up Petition") against GIIB Healthcare;

5.10 On 19 January 2023 GIIB Holdings Berhad ("GIIB Holdings") filed Shah Alam High Court Originating Summons No. BA-28JM-1- 01/2023 (