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
Introduction
The year 2019 witnessed a myriad of statutory adjudication disputes in Malaysia. The surge in the number of disputes involving the statutory adjudication mechanism in the Construction Industry Payment and Adjudication Act (CIPAA) 2012 also led to a significant number of consequential challenges to adjudication decisions in the courts. This article highlights the notable decisions handed down by the Malaysian courts in 2019 and their effect on the future application of the CIPAA.
Prospective effect of CIPAA
The following noteworthy appeals marked the beginning of a dramatic departure from the retrospective effect of the CIPAA observed since its enactment in April 2014:
Jack-In Pile (M) Sdn Bhd v Bauer (M) Sdn Bhd ([2020] 1 MLJ 174); and