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2023 MarsdenLR 889




HIGH COURT (SHAH ALAM)
WONG KIAN KHEONG J
ORIGINATING SUMMONS NO BA-24C-52-08 OF 2022 AND BA-24C-56-08 OF 2022
6 March 2023



Serene Hiew Mun Yi (with Pan Yan Teng) (Harold & Lam Partnership) for MCB.
Michael Yap Chih Hong (with Haikaldin bin Mahyidin) (Tommy Thomas) for KWSL.

Advocates:
Serene Hiew Mun Yi (with Pan Yan Teng) (Harold & Lam Partnership) for MCB.
Michael Yap Chih Hong (with Haikaldin bin Mahyidin) (Tommy Thomas) for KWSL.

Wong Kian Kheong J:

JUDGMENT

(2 Originating summonses)

A. Three novel matters

[1]This judgment regarding the above two originating summonses (2 OS) discusses three novel issues as follows:

(1)to determine whether an adjudicator has breached the second rule of natural justice (2nd Rule) under s 15(b)s 24(c)Construction Industry Payment and Adjudication Act 2012CIPAA) when the adjudicator arrives at an adjudication decision, should our courts adopt the approach applied by Steven Chong Horng Siong JA in Singapore’s Court of Appeal case of Glaziers Engineering Pte Ltd v WCS Engineering Construction Pte Ltd 3 Scenarios)?;

(2)in an application for an absolute stay of the enforcement of an adjudication decision (Absolute Stay Application) pending the disposal of litigation or arbitration between the parties (Litigation/Arbitration), can the court consider an oral application by learned counsel for a ““conditional stay”“ of the enforcement of the adjudication decision pending the outcome of Litigation/Arbitration (Conditional Stay Application)?; and

(3)in the exercise of the court’s discretion to decide a Conditional Stay Application, whether the court may consider the fact that there were previous court orders under s 28(1) and (2)CIPAA

B. 2 OS

[2]The 2 OS to be decided by this court are as follows:

(1)Mudajaya Corporation Sdn. Bhd. (MCB) has filed OS no. BA-24C-52-08/2022 (MCB’s OS) against KWSL Builders Sdn. Bhd. (KSWL) for the following orders -

(a)an order to set aside an adjudication decision made on 29.7.2022 [Adjudication Decision (29.7.2022)] by an adjudicator, Mr. Soh Lieh Sieng (Adjudicator), in favour of KWSL against MCB [Setting Aside Application (MCB’s OS)]; and

(b)as an alternative to the Setting Aside Application (MCB’s OS), an order to stay the enforcement of the Adjudication Decision (MCB’s OS) [Absolute Stay Application (MCB’s OS)] pending the disposal of a High Court suit filed by MCB against KWSL (MCB’s Suit). MCB’s Suit was initially filed in Kuala Lumpur High Court (KLHC) Civil Suit no. WA-22C-88-09/2020. By an order of KLHC, MCB’s Suit had been transferred from KLHC to the Ipoh High Court (Civil Suit no. AA-22C-1-09/2021); and

(2)OS no. BA-24C-13-02/2022 (KWSL’s OS) has been filed by KWSL against MCB for leave of court to enforce the Adjudication Decision (29.7.2022).

C. Background

[3]MCB had appointed KWSL to do the following sub-contract works (Works) in the same construction project (Project):

(1)in ““Letter of Award”“ (LA) dated 20.7.2016, MCB had appointed KWSL to do ““acoustic elements”“ works (Acoustic Elements Works);

(2)by way of LA dated 30.8.2016, MCB had appointed KWSL to perform infrastructural works (Infrastructural Works);

(3)KWSL was appointed by MCB in LA dated 18.10.2016 to supply and install reinforced concrete walkway (Walkway Works);

(4)in LA dated 31.10.2016, MCB had appointed KWSL to perform ““architectural works”“ (Architectural Works); and

(5)by way of a LA dated 28.3.2017, MCB had appointed KWSL to supply manpower services for the Project (Manpower Supply).

[4]Disputes arose between MCB and KWSL regarding the Works. Consequently -

(1)MCB’s Suit was filed;

(2)prior to the Adjudication Decision (29.7.2022), KWSL commenced three adjudication proceedings against MCB and obtained the following three adjudication decisions (3 Previous Adjudication Decisions) -

(a)with regard to the Walkway Works, on 19.1.2022, Dr. Wendy Ooi Su Ghee had adjudicated that MCB shall pay to KWSL a sum of RM500,736.24 [Adjudicated Amount (19.1.2022)] with interest and adjudication costs [Adjudication Decision (19.1.2022)];

(b)on 2.3.2022, Mr. Raja Kumar Raja Kandan delivered an adjudication decision [Adjudication Decision (2.3.2022)] wherein MCB shall pay to KWSL an amount of RM490,881.76 with interest and adjudication costs [Adjudicated Amount (2.3.2022)]; and

(c)in respect of the Acoustic Elements Works, Ms. Janice Tay had adjudicated on 21.3.2022 that a sum of RM2,342,148.98 with interest and adjudication costs [Adjudicated Amount (21.

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