Case Update: Federal Court Finds that Adjudication Only Applies Prospectively to Construction Contracts

The Federal Court in its grounds of judgment dated 16 October 2019 in Jack-In Pile (M) Sdn Bhd v Bauer (Malaysia) Sdn Bhd held that the Construction Industry Payment and Adjudication Act 2012 (CIPAA) applies only prospectively to construction contracts. CIPAA came into effect on 15 April 2014. Therefore, CIPAA only applies to construction contracts signed after this date.

Prior to this decision, there were High Court and Court of Appeal decisions holding that CIPAA could apply retrospectively to construction contracts. So if there were unpaid amounts arising from pre-15 April 2014 construction contracts, contracting parties could invoke CIPAA, had obtained adjudication decisions and had enforced payment.

It is now uncertain what will be the impact of this Federal Court decision on already decided adjudication matters based on pre-15 April 2014 construction contracts. Continue reading

Case Update: Court of Appeal Confirms Delivery of Vacant Possession Calculated from Date of Agreement

The Court of Appeal issued its grounds of judgment dated 20 August 2019 for GJH Avenue Sdn Bhd v Tribunal Tuntutan Pembeli Rumah & 2 Others. The case has essentially decided that the Tribunal of Homebuyer Claims should have applied the plain language of the Schedule G format of sale and purchase agreements under the Housing Development laws. Delivery of vacant possession is to be calculated from the date of the agreement and not from the date of the payment of the booking fee.

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Case Update: Priority of Wages under the Employment Act over Debenture Holder Debts

The High Court issued its grounds of judgment dated 18 July 2019 in the case of Perwaja Steel Sdn Bhd (in receivership) v RHB Bank Berhad & 789 Others. Justice Darryl Goon delivered the decision.

The main issue was whether wages under section 31 of the Employment Act 1955 (Employment Act) would have priority over the debts owed to the debenture holder.

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Case Update: Federal Court Decides on Final Payments Claimed in Adjudication

The Federal Court in its grounds of judgment dated 1 August 2019 in Martego Sdn Bhd v Arkitek Meor & Chew Sdn Bhd decided on important points of law on adjudication and final payments under a construction contract. The Federal Court had to decide whether the Construction Industry Payment and Adjudication Act 2012 (CIPAA) could apply. Further, it was also determined whether CIPAA could apply to payment disputes between an architect and client. The grounds of judgment were written by Justice Mohd Zawawi Salleh FCJ.

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Case Update: High Court Decides on Restraining Order Requirements under Companies Act 2016

I had earlier written about a High Court decision that set aside a restraining order. The Court held that the applicant must meet the statutory pre-conditions for the grant of a restraining order in a scheme of arrangement from the very initial application stage.

The High Court has now issued its grounds of judgment dated 3 May 2019 in the case involving Barakah Offshore Petroleum Berhad and PBJV Group Sdn Bhd.