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2025 MarsdenLR 4656

HIGH COURT MALAYA KUALA LUMPUR
SETIA UTAMA LRT3 SDN BHD – Appellant
Versus
SIEMENS MOBILITY SDN BHD & ORS AND ANOTHER CASE – Respondent
[Originating Summons No: WA-24C-22-01/2025 & WA-24C-28-02/2025]



Petitioner Advocates:Dhinesh Bhaskaran,Alexius Simon Lee Kim Soon,Serena Isabelle Azizuddin,Michelle Lim Wan Foong,Wong Jia Jing,Eg Sze Pei ,Respondent Advocate: Rajendra Navaratnam,Allen Cheng Peng Han,Georgina Lim Ern Ling,Joel Low Seong Lin

JUDGMENT

Nadzarin Wok Nordin J:

(Enclosure 1)

[1] In Originating Summons No WA-24C-22-01/2025 (OS 22), Setia Utama LRT3 Sdn Bhd ("SULSB") had applied to this court under encl 1 (encl 1) to set aside the Adjudication Decision dated 6 January 2025 ("AD") given in favour of Siemens Mobility Sdn Bhd ("SMSB"), Siemens Mobility GMBH ("SGMBH") and Rasma Corporation Sdn Bhd ("RC") who are collectively an unincorporated association (Consortium) pursuant to s 15(b) and (d) of the Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012). SULSB has also applied under this OS 22 in encl 27 for a stay application (encl 27) pending encl 1 being disposed.

[2] On the other hand, Originating Summons No WA-24C-28-02/2025 (OS 28) is in turn an application for the enforcement of the AD by the Consortium in accordance with s 28 CIPAA.

[3] Enclosure 1 in OS 22 is supported by inter alia the following grounds:

3.1 the AD is liable to be set aside as:

3.1.1 the AD was given in excess of the Adjudicator's jurisdiction

3.1.2 the Adjudicator has not acted independently or impartially

3.1.3 the Adjudicator has acted in breach of natural justice

3.2 there has been a denial of natural justice occasioned to SULSB, if judicial intervention is not allowed, the AD will cause severe miscarriage of justice and serious prejudice to SULSB

[4] Whereas encl 27 in OS 22 is based on inter alia the following grounds:

4.1 The Adjudicator has delivered the AD on 6 January 2025 in favour of the Consortium

4.2 The Consortium is pursuant to s 28 CIPAA making this application to enforce and give effect to the AD

4.3 All the statutory requirements under s 28 CIPAA has been complied with by the Consortium

Brief Background Facts

[5] By Articles of Agreement dated 21 February 2020 ("AA"), the plaintiff (as the main contractor) appointed the 1st, 2nd, and 3rd Defendants (who collectively formed the Consortium), as a works package contractor ("WPC") to carry out and complete works for a project known as "Construction and Completion of Light Rail Transit Line 3 (LRT3) from Bandar Utama to Johan Setia" ("Project").

[6] The works included, among others, the design, manufacture, supply, delivery, installation, testing and commissioning of the following ("Works"):

(i) Signalling and Train Control System ("S&TCS"); and

(ii) Intrusion Preventive System ("IPS") for the Project where the route is a double track system comprising of 37km above ground and 2km of tunnel sections with 20 elevated stations at the main line from GS01 to GS10 ("Main Line"). The depot is located at the end of the route line near Station 26: Johan Setia ("Depot").

[7] The contract documents consisted of the following ("Contract"):

(i) AA;

(ii) Conditions of Contract (including the appendices) ("COC");

(iii) Specifications;

(iv) Pricing Document; and

(v) any other documents incorporated by reference in any of the foregoing documents.

[8] Pursuant to the Contract, the defendants were to commence and complete the Works by 30 November 2023.

[9] However, the defendants by their own actions are alleged to have caused delay to the Works, including but not limited to the following:

(i) The defendants' late procurement or readiness of the copper and fibre optic cable for the Main Line, and the late development of the project software for the Works;

(ii) The defendants' self-inflicted delays, specifically:

(a) Slow progress in the Depot works due to a major design error, thereby causing the Depot works to only be completed on 4 March 2024.

(b) The main deliverables of the Main Line cables were only ready in September 2023 and 2024, significantly later than the Track Related Installation Programme ("TRIP") access dates.

(c) The late software design by the defendants.

(iii) These delays were concurrent and/or superseded any alleged delays to the TRIP access;

(iv) The defendants were neither ready for the TRIP actualised dates nor the Key Dates specified under Appendix D, Particular Specifications of the COC. Since the actualisation of method stateme


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