Ahmad Zaidi Ibrahim JCA:

GROUNDS OF JUDGEMENT

Introduction:

[1]The parties hereinafter shall be referred to as they were before the Johor Bahru High Court in Saman Pemula No.: JA-24C(ARB)-1-07/2021.

[2]Vide Saman Pemula No.: JA-24C(ARB)-1-07/2021 abovesaid, the Plaintiff (Sigma Elevator (M) Sdn. Bhd.) had applied for Security for Costs in the sum of RM400,000-00 against the Defendant (Perbadanan Pengurusan City Plaza) pursuant to section 11Arbitration Act 2005

[3]On 28.11.2021, the learned High Court Judicial Commissioner (JC) allowed the Plaintiff’s said application with Costs and ordered the said security sum be paid to the Plaintiff’s solicitor as a stakeholder.

The Findings and Rulings of The High Court Dated 28.11.2021:

[4]Based on the Grounds of Judgment (GOJ) the learned JC ruled that there is reasonable doubt about the Defendant’s ability to pay costs if the Defendant is unsuccessful at the arbitration. His Lordship’s ruling/order is founded on the following findings:

(i)that the Defendant is insolvent, as admitted by the Defendant, and that its account has been frozen. Its audited account for 2019 showed a deficit. (paragraphs 14 – 16 GOJ referred to). The learned JC referred amon