JUDGMENT

Azlan Sulaiman J:

Introduction

[1] These two Originating Summons are connected by an Adjudication Decision dated 23 January 2025 in Adjudication Reference No: AIAC/D/ADJ-5579-2024 ("Adjudication Decision") that Menta Construction Sdn Bhd ("Menta") obtained against Zenith Developments Sdn Bhd ("Zenith") under the Construction Industry Payment and Adjudication Act, 2012 ("Act").

[2] By Originating Summons No: WA-24C-57-03/2025 ("OS 57"), Zenith is applying:

(i) under ss 15(b) and 15(d) of the Act to set the Adjudication Decision aside; and

(ii) under s 16(1)(a) of the Act to stay the enforcement of the Adjudication Decision pending the disposal of OS 57.

[3] By Originating Summons No: WA-24C-83-04/2025 ("OS 83"), Menta is invoking s 28 of the Act to enforce the Adjudication Decision against Zenith.

[4] At the Case Management on 30 April 2025, I gave directions for both OS 57 and OS 83 to be heard together, and issued directions for both, including a date for decision on them.

[5] As OS 57 and OS 83 are being heard together, then it will be just a matter of deciding whether to set the Adjudication Decision aside or whether to allow it to be enforced. Since Zenith is applying for a stay of the Adjudication Decision until the disposal of OS 57, the merits of that application for a stay need not be considered.

[6] It further stands to logic that I will deal with OS 57 first because, if the Adjudication Decision is set aside, there will be nothing to enforce.

Salient Facts

[7] The construction project here is the Proposed Construction And Completion of Earthworks for Mixed Development Langkasuka, Langkawi ("Project") for Langkasuka Land Sdn Bhd ("Employer").

[8] After the Employer appointed Zenith as the replacement contractor for the Project, by a Letter of Award dated 6 October 2023 ("LOA"), Zenith had appointed Menta as a subcontractor for the Project at the subcontract price of RM40,927,241.63 ("Subcontract Price").

[9] The LOA was preceded by Menta's earlier proposal to the earlier contractor for the Project ("Menta's Proposal"). Zenith contends that, apart from the LOA, its contract with Menta is governed by Menta's Proposal and the Institution of Engineers, Malaysia, IEM Form of Contract for Civil Engineering Works, 3rd edn, January 2017 applies ("IEM 2017").

[10] On 5 June 2024, Menta terminated the Subcontract on the ground of non-payment by Zenith.

[11] By a Payment Claim dated 30 July 2024, Menta sought payment of:

(i) the sum of RM2,672,955.69 for work done under four payment certificates;

(ii) the retention sum of RM267,295.57; and

(iii) interest of RM41,951.44.

[12] In para 152 of the Adjudication Decision, the Adjudicator determined as follows:

"The Respondent is hereby ordered to pay the Claimant within 10 working days of the receipt of this Adjudication Decision the following:

(1) the sum of RM2,672,955.69;

(2) interests at the rate of 5% per annum on the outstanding sum of RM1,203,921.51 under Claimant's invoice No. MCSB/SI/00100, calculated from 18 March 2024 until the date of full satisfaction;

(3) interests at the rate of 5% per annum on the outstanding sum of RM534,186.35 under Claimant's invoice No. MCSB/SI/00101, calculated from 18 March 2024 until the date of full satisfaction;

(4) interests at the rate of 5% per annum on the outstanding sum of RM319,451.93 under Claimant's invoice No. MCSB/SI/00169, calculated from 16 August 2024 until the date of full satisfaction;

(5) interests at the rate of 5% per annum on the outstanding sum of RM348,100.33 under Claimant's invoice No. MCSB/SI/00170, calculated from 16 August 2024 until the date of full satisfaction;

(6) interests at the rate of 5% per annum on the outstanding sum of RM267,295.57 being the retention sum, calculated from 6 June 2024 until the date of full satisfaction; and

(7) costs of RM69,145.06."

[13] Zenith has not paid any of the sums under the Adjudication Decision to Menta.

[14] Zenith filed OS 57 on 26 March 2025, and Menta filed OS 83 on 30 April 2025.

OS 57

[15] Sect