Malaysia - Adjudicators' Jurisdiction In Construction Industry Payment And Adjudication (CIPA). Legal News and Analysis - Malaysia - Dispute Resolution - International Arbitration -
On-Demand Bonds or Guarantees are preferred relative to “see to it” Bonds or Guarantees. This is because under On-Demand Bonds the obligation to pay arises through a demand being made.
The Court of Appeal in
Likas Bay Precinct Sdn Bhd v
Bina Puri Sdn Bhd [2019] 3 MLJ 244, held that a
successful claimant in adjudication proceedings is not required to
enforce the adjudication decision before issuing a statutory notice
of demand. However, in
ASM Development (KL) Sdn Bhd v
Econpile (M) Sdn Bhd (Case No. WA-24NCC-363-07/2019),
the High Court recently allowed the plaintiff s application for
a Fortuna Injunction, which restrained the successful party in a
CIPAA proceeding from presenting a winding-up petition against
the losing party who failed to pay the adjudicated sum pursuant to
the CIPAA decision.
This article summarizes the decision of the High Court