JUDGMENT

Leong Wai Hong J:

[Stay Of Proceedings Pending Arbitration Notwithstanding Insolvency Of A Party To The Arbitration And Co-Defendants Who Are Not Parties To The Arbitration]

Introduction

Issues

[1] The issues before me, [as framed by the plaintiffs in their reply written submissions at para 2 and modified by me], are:

i. Whether an arbitration agreement remains valid if one party becomes insolvent;

ii. Whether the arbitration agreement is contrary to the objectives of the insolvency regime and against public interest under s 4 and/or s 10 of the Arbitration Act 2005 ["AA 2005"];

iii. Whether a stay of the plaintiffs' suit should be granted as the Second to Sixth defendants are not parties to the arbitration agreement between Pustaka Efektif Sdn Bhd (In Liquidation) ("Pustaka") [the plaintiffs in this suit are Ler Cheng Chye and Lum Tuck Cheong as liquidators of Pustaka] and the 1st defendant Aturan Prisma Sdn Bhd ("Aturan"); and

iv. Whether a stay of the plaintiffs' suit should be granted if there are no dispute necessitating reference to arbitration.

Projects

[2] Aturan is the main contractor for two projects known as the "Scott Tower Project" and the "PR1MA Tebrau Project" located