June Ong writes this update on the Malaysian High Court decision applying the “full merits” test in determining the existence of an arbitration agreement.
The High Court in Lysaght Corrugated Pipe Sdn Bhd and Anor v Popeye Resources Sdn Bhd and Anor (Kuala Lumpur High Court Civil Suit No.: WA-22NCC-109-03/2021) (grounds of judgment dated 10 February 2022) set out the requirements for a stay of proceedings pending arbitration under section 10 of the Arbitration Act 2005. This is in particular when evaluating the existence of an arbitration agreement. Further, in dismissing the stay, the Court granted an anti-arbitration injunction to restrain a Hong Kong arbitration.