Mohd Nazlan Mohd Ghazali JCA:

Introduction

[1] This is an appeal against the decision of the High Court which refused the appellant's application for a stay of the enforcement of an adjudication decision in favour of the respondent. After having heard the appeal which was conducted by way of a remote communication technology via Zoom we unanimously decided to allow the appeal and highlighted the broad reasons for the same. These grounds of judgment contain the full reasons for our decision.

Key Background Facts

[2] By way of a Letter of Award dated 26 September 2016 ("the Contract"), the appellant as the developer engaged the respondent as its main contractor to carry out piling works for a mixed development project consisting of seven blocks of serviced apartments in Kuala Lumpur for an original contract sum of RM280,000,000.00 ("the Project").

[3] The Contract incorporated the Agreement and Conditions of PAM Contract 2006 (With Quantities), with modifications and amendments (the "PAM Conditions of Contract"). The contractual completion date was on 7 January 2018 but parties extended the date to 7 April 2018. The parties then executed a PAM Contract dated 17 October 2017 incorp