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2025 MarsdenLR 5895

HIGH COURT MALAYA KUALA LUMPUR
PANASONIC APPLIANCES AIR-CONDITIONING MALAYSIA SDN BHD – Appellant
Versus
ALPHA SEIKO PLASTICS SDN BHD – Respondent
[Originating Summons No: WA-24NCC(ARB)-13-05-2023]



Petitioner Advocates:Eddie Chuah Seong Eng,Lim Sin Ern ,Respondent Advocate: Selva Mookiah,Sajitha Suresh,Suria Juan Pillai

JUDGMENT

Wan Muhammad Amin Wan Yahya J:

[1] This was the Plaintiff's application via an Amended Originating Summons (encl 39) to set aside an Interim Award dated 14 April 2023 ("the Interim Award") made by the learned Arbitrator, Dato' Mah Weng Kwai, in arbitration proceedings bearing reference No: ADM-878-2020 ("this Originating Summons").

[A] Salient Background Facts

[2] A dispute arose between the Defendant and the Plaintiff arising out of an Outsourcing & Supply Agreement dated 1 July 2014 ("Agreement") entered into between the parties. The Agreement contained an arbitration clause under cl 32.0 therein.

[3] The crux of the dispute relates to the Defendant's allegation that the Plaintiff had breached its obligations under the Agreement in relation to the production and manufacturing of Cross Flow Fans ("CFF"). The Defendant claimed that the alleged breaches had caused losses to it. These allegations were disputed by the Plaintiff.

[4] On 18 March 2020, the Defendant filed a Writ action against the Plaintiff in the Shah Alam High Court , Suit No BA-22NCC-44-03/2020 ("Writ Action") to prosecute its alleged claims In the Writ Action, the Defendant had framed a case whereby the relief sought included special damages amounting to RM30,745,512.56 against the Plaintiff.

[5] The Plaintiff applied for and obtained an Order dated 10 September 2020 from the High Court to stay the Writ Action pending reference to arbitration at the Asian International Arbitration Centre ("AIAC"). The High Court made a further Order to appoint Dato' Mah Weng Kwai ("the learned Arbitrator") as the sole arbitrator pursuant to s 24A of the Courts of Judicature Act 1964.

[6] On 16 October 2020, the Defendant issued a Notice of Arbitration to refer the dispute to arbitration under the Arbitration Act 2005 and the AIAC Rules 2018. In the arbitration, the Defendant sought the same special damages of RM30,745,512.56 as pleaded in the earlier Writ Action.

[7] The Defendant in the present case is the Claimant in the arbitral proceedings, whereas the Plaintiff is the Respondent.

[8] Between 16 October 2020 and 9 July 2021, both parties delivered their respective pleadings in the arbitration. The learned Arbitrator issued pre-hearing written directions on 18 March 2021 and 19 August 2021, which inter alia required the parties to file their respective bundles of documents for use at the evidentiary hearing. Prior to the start of the evidentiary hearing, parties had filed and exchanged a total of more than 50 volumes of bundles of documents.

[9] The evidentiary hearing of the arbitration commenced on 15 February 2022, whereby the Defendant called its sole witness ("CW-1") to testify. The Defendant closed its case on 6 April 2022, having indicated its intention to recall CW-1 to give evidence on the production of further documents.

[10] The Plaintiff opened its case on 6 April 2022. On 12 July 2022, CW-1 was recalled for the first time to adduce an additional bundle of documents. CW-1 was examined, cross-examined and reexamined on the same day. However, CW-1 was again released, subject to recall by the Defendant to adduce further documents.

[11] On 8 December 2022, after both parties had closed their cases and during the cross-examination of the Plaintiff's final witness, the Defendant filed a letter application seeking the learned Arbitrator's "leave to file the Claimant's List and Additional Bundle of Documents [Volumes 8-78]' ("Application" or "the Defendant's Application"). In essence, the Defendant sought to file 71 new bundles of documents.

[12] The Plaintiff objected to the Application via letter dated 5 January 2023. The Defendant responded on 18 January 2023, and the Plaintiff provided a further response on 8 February 2023. The learned Arbitrator requested further oral arguments, which were heard on 29 March 2023. Both parties also filed written submissions on 29 March 2023 and 30 March 2023, respectively.

[13] By the time the Application was heard, a total of 20 days

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