Category Archives: ILO

Calling on performance bonds: new test for unconscionability?

The recent Federal Court decision in Catajaya Sdn Bhd v Shoppoint Sdn Bhd has breathed new life into the interpretation of termination clauses in contracts. Indeed, it sounded a cautionary note to the business community at large when the Federal Court held that termination clauses must be interpreted strictly.

Federal Court rules that termination clauses should be construed strictly

The recent Federal Court decision in Catajaya Sdn Bhd v Shoppoint Sdn Bhd has breathed new life into the interpretation of termination clauses in contracts. Indeed, it sounded a cautionary note to the business community at large when the Federal Court held that termination clauses must be interpreted strictly.

Can management corporations stop parcel owners from operating Airbnbs?

Introduction The emerging practice of the sharing economy, often known as the peer-to-peer economy, is well known. Airbnb and other short-term rental platforms are some examples of the disruptive sharing economy innovations for the hospitality industry. This has garnered the interest of property owners in listing their residential units with these platforms for short-term rental….

From bare trustee to chargee: does registration of a charge assure an indefeasible interest?

Introduction Modelled after the Australian Torrens System, the concept of indefeasibility is the cornerstone of Peninsular Malaysia’s land administration system, which is embodied in Section 340 of the National Land Code 1965. Once an interest is registered in the title of a property, it is immune against any adverse claims. While disputes on indefeasibility are…

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CIPAA: court has no discretion to set aside adjudicator’s costs order

Introduction The Construction Industry Payment Adjudication Act 2012 (CIPAA) was enacted to alleviate payment problems in the construction industry by allowing any payment dispute to be resolved speedily through adjudication. However, the losing party may opt to set aside or stay an adjudication decision pursuant to Sections 15 and 16 of the CIPAA. On the…

Posted in ILO

Section 30 of CIPAA: apex court maintains mandatory direct payment obligation against employer under receivership

Introduction The direct payment made by an employer of a construction project to a subcontractor is a key feature of statutory adjudication in Malaysia. In BHL Gemilang Sdn Bhd v CT Indah Construction Sdn Bhd,(1) the apex court refused to disturb the Court of Appeal’s landmark ruling which tests the efficacy of the direct payment…