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2025 MarsdenLR 5612

COURT OF APPEAL (PUTRAJAYA)
LEE SWEE SENG, CHOO KAH SING, AHMAD FAIRUZ ZAINOL ABIDIN, JJ
Setia Awan Management Sdn Bhd – Appellant
Versus
SPNB Aspirasi Sdn Bhd – Respondent


Advocates:
Dinesh Nandrajog (with Syahara Azhari) (Nandrajog) for the appellant.
Masturina Mohamad Rodzi (Edwin Lim & Suren) for the respondent.

Table of Content
1. overview of arbitration and court proceedings. (Para 1 , 1 , 2 , 3 , 4 , 5 , 6)
2. arguments regarding the validity of the arbitration agreement. (Para 7 , 8 , 9)
3. factual background of the parties' agreement. (Para 10 , 11 , 12)
4. interpretation of the arbitration clause. (Para 14 , 20 , 21 , 22)
5. legal implications of arbitration agreements. (Para 28 , 29 , 37 , 47 , 50)
6. court's discretion in deciding on arbitration. (Para 53 , 55 , 65 , 70 , 74)
7. final determination of the arbitration agreement's validity. (Para 87 , 88 , 90 , 92 , 106)
8. conclusion and order. (Para 107)

[1]The arbitration agreement here is rather uncommon but simple enough to be understood even on first reading. It gives the parties to the contract an option, in the event of a dispute, to either go to court or proceed with arbitration. When a dispute did arise in this matter, one party proceeded with filing a writ action in court only to be met by the other party applying to stay the court proceedings on ground that there is an arbitration agreement that requires the dispute to be referred to arbitration.

Before the High Court

[2]The High Court dismissed the stay application made under s 10A

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