JUDGMENT

Ahmad Zaidi Ibrahim J:

Introduction

[1] The defendant through Notice of Application (encl 7), applied for an order to stay all proceedings in this Suit between the plaintiff and the defendant, pending arbitration. The defendant's application is made pursuant to s 10 of the Arbitration Act, 2005.

[2] After having considered the defendant's application and the objection by the plaintiff, based on the following grounds, I dismissed the said application with costs.

Cause Papers

[3] The cause papers referred to by the parties are:

(i) Writ of Summons (encl 1);

(ii) Statements of Claims (encl 2);

(iii) Statement of Defence (encl 4);

(iv) Reply to the Statements of Defence (encl 5);

(v) Notice of Application (encl 7);

(vi)The defendant's Affidavit In Support (encl 6);

(vii) The plaintiff's Affidavit (No. 1) (encl 9);

(viii) The defendant's Affidavit in Reply (encl 10); and

(ix) The plaintiff's Affidavit (No. 2) (encl 12).

Background Facts And Chronology

[4] Based on the pleadings of the parties, the relevant facts and chronology of events are:

(i) Vide an agreement identified as "Engineering Procurement, Construction and Commission Agreement" (the EPCCA) dated 19 October 2005, the plaintiff (previously known as Ramunia Fabricators Sdn Bhd) was appointed by one MHES Asia Sdn Bhd (MHES) as its sub-contractor, to construct a "Small Renewable Energy Power Plant" in Jempol, Negeri Sembilan for Felda Palm Industries Sdn Bhd. The EPCCA contained an arbitration agreement in cl 58 (encl 6 - exh "AG-1');

(ii) Having completed its work under the EPCCA, the plaintiff claimed payment from MHES for the work done, amounting RM63,050,575.20;

(iii) MHES which was then facing financial difficulties and was unable to pay the plaintiff for the work done, entered into a "Novation Agreement" dated 30 March 2012 with Zen-End Resources Sdn Bhd (the defendant) and Ramunia Fabricators Sdn Bhd whereby MHES agreed to novate their rights, obligations and liabilities under the EPCCA to the defendant (encl 6 - exh "AG-2");

(iv) Flowing from the said Novation Agreement, the plaintiff and the defendant entered into a "Settlement Agreement" dated 30 March 2012, whereby the defendant agreed to pay the plaintiff RM30,000,000.00 being full and final satisfaction of the outstanding sum (the settlement sum). Payment of the settlement sum was to be paid by five instalments (encl 6 - exh "AG-3');

(v) The defendant then made two payments to the plaintiff each totalling RM1,150,000,00 and RM4,500,000,00 respectively (encl 6 - exh "AG-4'). The defendant, however failed to settle the balance payment of RM24,500,000.00;

(vi) Following from the defendant's failure, the plaintiff issued a Notice under ss 456 and 466 of the Companies Act 2016 to commence winding-up proceeding against the defendant (encl 6 - exh "AG-4'). Thereafter, the plaintiff filed Petition No WA- 28NCC-484-05-2018 on 23 May 2018 to wind up the defendant (encl 6 - exh "AG-8').

(vii) The defendant opposed the said Petition and in a concurrent move, on 12 June 2018 pursuant to cl 58 of the EPCCA, the defendant commenced arbitration proceeding against the plaintiff (encl 6 - exh "AG-9");

(viii) As for the said Winding-Up Petition, it was subsequently struck out by the court on 7 September 2018 on the grounds as per in the judgment of the court dated 7 September 2018 (encl 6 - exh "AG- 11').

(ix) Following the defendant's breach of the Settlement Agreement, the plaintiff commenced this Civil Suit, claiming the outstanding sum of RM24,500,000.00;

(x) The defendant then vide encl 7 applied to stay this Civil Suit and to have its dispute determined by arbitration pursuant to cl 58 of the EPCCA.

Notice Of Application (Enclosure 7)

[5] The defendant applied for stay of this Civil Suit pending arbitration based on cl 58 of the EPCCA. The defendant claimed that the dispute herein ought to be determined by arbitration, as provided for and agreed under the EPCCA. Under cl 58 of the EPCCA, the parties agreed that any dispute arising out of the