Tag Archives: construction industry payment and adjduication act 2012

Adjudicator is Bias for Unreasonable Deadlines & Failure to Account for MCO Restrictions

Whilst an adjudicator has wide discretionary powers under the Construction Industry Payment and Adjudication Act 2012, can such discretionary power disregard or bypass the restrictions provided in the Prevention and Control of Infectious Diseases (Measures Within Infected Local Areas) Regulations 2020 [P.U. (A) 91/2020] more commonly known as the ‘Movement Control Order’?

The High Court upon scrutinising the adjudicator’s conduct in Itramas Technology Sdn Bhd v Savelite Engineering Sdn Bhd and other cases held that there was actual bias by the Adjudicator for amongst others, failing to give effect to the MCO.

Winding up petition based on adjudication decision under CIPAA – Court of Appeal reaffirms Likas Bay

Where a party has obtained an adjudication decision in its favour, that party may seek to bring a winding up petition premised on that adjudication decision. Darryl Goon J (as he then was) in ASM Development (KL) Sdn Bhd v Econpile (M) Sdn Bhd previously decided that an injunction may nevertheless be issued to restrain the presentation of such a petition. This has been discussed in an earlier article .

That article looked at two decisions of the High Court made subsequent to ASM, namely, Maju Holdings Sdn Bhd v Spring Energy Sdn Bhd and, RZH Setia Jaya Sdn Bhd v Sime Darby Energy Solutions Sdn Bhd. In the latter decision, the High Court adopted and agreed with the dictum of Darryl Goon J (as His Lordship then was) in ASM.

RZH Setia recently came up for appeal before the Court of Appeal, where the Court of Appeal considered the central question of whether the High Court had properly exercised its discretion in granting the Fortuna injunction sought by RZH Setia.

CIPAA: clash of stay applications and enforcement orders

Once a successful party obtains an adjudication decision under the Construction Industry Payment and Adjudication Act (CIPAA) 2012, the next course of action is usually to enforce the adjudication decision pursuant to section 28 of the CIPAA (enforcement order). Meanwhile, the losing party will often attempt to set aside or stay the adjudication decision under sections 15 or 16 of the CIPAA.

However, what if an application to stay is made after an enforcement order is granted against the adjudication decision and the application to set aside the adjudication decision is dismissed? The court was faced with this scenario in the recent case of MKP Builders Sdn Bhd v PC Geotechnic Sdn Bhd [(2021) MLJU 1061].

Hearsay Evidence in Expert Reports – General and Specific Hearsay

The rule against hearsay evidence prevents the admission of evidence of information from a third party. The evidence from a third party will generally be regarded as hearsay evidence and thus inadmissible, unless the third party him/herself testifies on the said evidence. This rule has been applied to witnesses of fact and opinion.

However, to what extent should this rule be relaxed when experts seek to rely on hearsay evidence in their reports, and in what circumstances should such evidence be admissible? This was the question that arose, amongst many others, for the determination of the Singapore International Commercial Court (‘SICC’) in Kiri Industries Ltd v Senda International Capital Ltd and another.

CIPAA: adjudicators’ powers to order remedies and interest when payment clause is unenforceable

Section 25 of the Construction Industry Payment and Adjudication Act (CIPAA) 2012 lists adjudicators’ extensive powers in adjudication proceedings, including the power to award financing costs and interest. The recent high court decision in First Commerce Sdn Bhd v Titan Vista Sdn Bhd and another case(1) examined the extent of an adjudicator’s powers to determine remedies and interest in unique circumstances where a payment clause was void and the default statutory implied payment provision in the CIPAA was pleaded.

CIPAA: Only Qualified Advocates for Adjudications in East Malaysia?

It is a well-known fact in Malaysia that the governing law of legal profession for Peninsular and East Malaysia differ from one another. Should one wish to commence a court action in the East Malaysia, an advocate qualified under the Sabah or Sarawak Advocates Ordinance would have to be appointed. However, what about adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) which allows parties to “be represented by any representative appointed by the party”. The High Court case of Tekun Cemerlang Sdn Bhd v Vinci Construction Grands Projets Sdn Bhd had recently shed light on this matter.

Section 30 of CIPAA – A Road Less Travelled, Now Widened

“The Construction Industry Payment and Adjudication Act 2012 (CIPAA) has been legislated to facilitate cash flow in the construction industry.” – a sentiment readily resonated nationally amongst judges and legal practitioners in the construction industry alike, amongst others.

Wishing our Muslim friends a blessed and prosperous Eid al-Fitr! Selamat Hari Raya, Maaf Zahir dan Batin