Court upheld the arbitral award, confirming minimal intervention principles in arbitration and affirming compliance with natural justice standards.

Aliza Sulaiman J:

Introduction

[1] The dispute between the parties concerns the construction of one of the key projects under the Ninth Malaysia Plan ('RMK9') and part of the Iskandar Malaysia project, namely the 23 km Iskandar Coastal Highway which connects Iskandar Puteri in the west to Johor Bahru, Johor in the east.

[2] Two applications were heard together before the Court, namely:

(a) enclosure 1 in Originating Summons ('O.S.') No. WA-24C(ARB)- 49-11/2019 which was filed by Iskandar Regional Development Authority ('IRDA') on 8 October 2019 to set aside the Final Award dated 10 July 2019 ('Award') published by the late Mr Vinayak Pradhan as the sole arbitrator in an arbitration proceeding held in Kuala Lumpur between SJIC Bina Sdn Bhd ('SJIC Bina') as the claimant and IRDA as the respondent. Based on the intitulement in the O.S., IRDA's application is pursuant to paras 37(1)(a) and 37(1)(b) of the Arbitration Act 2005 ('') and Orders 7, 28, 69 and 92, r 4 of the Rules of 2012 ('') wherein the Award is said to be in conflict with the public policy of Malaysia and/ or is in breach of the rules on natural justice amounting to a conflict with the public policy of Malaysia. IRDA additionally prays for the Award to be stayed pending final determination of its application to set aside the Award; and

(b) enclosure 9 in O.S. No. WA-24C(ARB)-35-08/2019 which was filed by IRDA on 18 October 2019 pursuant to ss 38 and 39 AA 2005; O 69 r 8(7) and O 92, r 4 RoC 2012; and/ or the inherent jurisdiction of the Court seeking, among others, for-

(i) an order to set aside the Ex-Parte Order dated 1 October 2019 granting liberty to SJIC Bina to register and enforce the Award in the same manner as a judgment or order made by the Court ('Enforcement Order'); endorse the Enforcement Order with the notice prescribed in Form 83 RoC 2012; and take enforcement action against any individual or entities who breaches or abets in breaching the Award. IRDA was also given liberty to make an application to set aside the Enforcement Order within 14 days from the date of service of the same;

(ii) a declaration that the Award is in conflict with the public policy of Malaysia and/ or is in breach of the rules on natural justice; and

(iii) an order that the recognition and enforcement of the Award be refused.

[3] Having given careful consideration to the cause papers, written and oral submissions and clarifications by learned counsels representing IRDA and SJIC Bina, the Court had dismissed IRDA's applications as abovesaid with costs to be paid by IRDA to SJIC Bina in the sum as agreed by the parties ie RM20,000.00 for each enclosure, subject to allocator.

[4] My full grounds for the decision are elaborated below.

The Facts

[5] IRDA's counsel provided an extensive Statement of Facts in APPENDIX A of his Written Submissions dated 23 January 2020 including the establishment of IRDA under the Iskandar Regional Development Authority Act 2007 [Act 664]. However, in order to fully appreciate the issues which came before the Arbitral Tribunal and thereafter, to this Court, I shall draw upon the facts as set out in the said APPENDIX A and in the Award as evidenced by the contemporaneous documents which chronicle the events leading to the disagreement between the parties.

[6] Between 2007 to early January 2008, various Government agencies, including the Ministry of Finance ('MoF') were in direct negotiation with a company known as South Johor Investment Corporation Berhad ('SJICB'), to undertake six road projects in Iskandar Malaysia as the implementation agency on behalf of the Government.

[7] On or about 15 January 2008, upon IRDA's creation, MoF appointed IRDA as the implementation agency for the six road projects whilst SJICB was designated as the main contractor, subject to MOF having final approval of the contract sums

[8] On 28 February 2008, IRDA issued a Letter of Intent ('LoI') to SJICB offering the project known as "Projek Lebuhraya Pesisir Pantai Johor Bahru Ke