ANAS CONSTRUCTION SDN BHD v. JKP SDN BHD & ANOTHER APPEAL

[2024] 2 MLRA 399
Federal Court, Putrajaya
Abdul Rahman Sebli CJSS, Mary Lim Thiam Suan, Nordin Hassan FCJJ
[Civil Appeal Nos: 02(f)-3-01-2023(P) & 02(f)-4-01-2023(P)]
Abdul Rahman Sebli CJSS, Mary Lim Thiam Suan, Nordin Hassan FCJJ

JUDGMENT

Nordin Hassan FCJ (majority):

[1] Anas Construction Sdn Bhd ("the appellant") filed two appeals before this Court against the decisions of the Court of Appeal. Civil Appeal No 02(f)- 3-01-2023(P) is against the decision of the Court of Appeal to set aside the decision of the High Court to allow the enforcement of the Adjudication Decision dated 12 September 2019 under the Construction Industry Payment and Adjudication Act 2012 ("CIPAA"). Civil Appeal No 02(f)-4-01-2023(P) is against the decision of the Court of Appeal in setting aside the decision of the High Court in dismissing the respondent's application to set aside the said Adjudication Decision.

[2] This Court on 3 January 2023 had granted the appellant's leave to appeal on the following questions of law, namely:

(i) Do the strict rules of pleadings, as applicable in civil claims before the Malaysian Courts, apply in adjudicating proceedings under the Construction Industry Payment and Adjudication Act 2012?

(ii) Whether the dicta in View Esteem Sdn Bhd v. Bina Puri Holdings Bhd [2018] 1 MLRA 460 prohibits an adjudicator from referring to a specific clause in a construction contract when allowing the claim when the said clause was not specifically stated in the Payment Claim and Adjudicating Claim by the claiming party?

(iii) In a CIPAA Award, does the adjudicator's consideration of a specific clause in the construction contract, not specifically stated in the Payment Claim or Adjudication Claim, without inviting parties to further submit on the said clause, amount to a breach of natural justice or an act excess in the jurisdiction, such that the said Award ought to be set aside?

The Background Facts

[3] JKP Sdn Bhd ("the respondent") appointed the appellant as the main contractor for the construction and completion of a project, for a sum of RM67,994,500 under a Construction Contract dated 9 April 2015 ("the Contract"). The project was known as "Cadangan Membina dan Menyiapkan Satu (1) Blok Pangsapuri 24 Tingkat Rumah Pangsa Kos Sederhana (392) Unit di atas Tanah Tebusguna Kerajaan, Kampung Pisang Awak, Seksyen 4, Bandar Jelutong, Daerah Timur Laut, Pulau Pinang" ("the Project").

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