JUDGEMENT

Arifin Zakaria FCJ:

These are two related appeals. Appeal No. W-02-565-99 is an appeal against the decision of the learned judge dismissing the application by the appellant in Originating Summons R2-24-74-99 for leave under s. 27 of the Arbitration Act 1952 (the Act) to enforce the award of arbitrators dated 8 October 1999 (the award). While appeal No.W-02-566-2000 is an appeal against the decision of the learned judge in allowing the application by the respondent to set aside the award. At the outset it was agreed by the parties that appeal No. W-02-565-99 will abide the outcome of appeal No. W-02-566-99. On that premise we proceeded to hear appeal No. W-02-566-99.

Brief Facts

First the brief facts. The respondent is a port tank owner and an approved delivery point for crude palm oil (CPO) under the trading procedure established by the Commodity & Monetary Exchange of Malaysia (COMMEX). Under the said trading procedure when a trader sells CPO at COMMEX, the seller will deliver the CPO to COMMEX approved delivery point at a certain port tank installation. Under cl. 3 of the Letter of Undertaking and in accordance with r. 1409 of COMMEX Rules and Regulations (the Rules) t