Litigation & Arbitration Publications
Litigation & Arbitration

Setting Aside of Arbitration Award : Group of Companies Doctrine and Binding Non-Signatories to Arbitration Agreements

PT Wijaya Karya (Persero) TBK & Anor v Zecon Berhad & Anor [2025] CLJU 1220

It is not uncommon for a group of companies to deploy multiple entities within the group to carry out a project undertaken by one of its companies (the “Principal Company”). This often occurs when assistance from other group entities is required to support the performance of a contract signed by the Principal Company.

But what if the main agreement signed by the Principal Company contains an arbitration clause, while the other entities assisting in contract performance are not parties to that agreement?

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Construction & Energy | Legal Case Update | Malaysia | ZMM
Construction & Energy

CIPAA 2012: Is Retention Sum “Money Due or Payable” by the Principal Post-Termination of the Main Contractor?

Kinu Sdn Bhd v Kerajaan Malaysia (Jabatan Kerja Raya Malaysia) [W-01(C)(A)-523-08/2024]

Section 30 of the Construction Industry Payment and Adjudication Act 2012 (“CIPAA 2012”) enables a subcontractor to request direct payment from the principal or employer if the main contractor fails to pay the adjudicated amount in favour of the subcontractor, and where there is money due or payable by the employer to the main contractor. However, would the employer still be considered a “principal” for the purposes of Section 30 if the main contract restricts the main contractor from awarding the subcontract in the first place?

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Litigation & Arbitration Publications
Litigation & Arbitration

Stay Pending Arbitration : When Parties have the Option to Arbitrate or to Litigate in Court

Setia Awan Management Sdn Bhd v SPNB Aspirasi Sdn Bhd [2025] CLJU 982

What if the dispute resolution clause under the contract gives the parties the option to either arbitrate or litigate in Court? Can such a clause still be considered as an arbitration agreement? If so, would it be “null and void, inoperative or incapable of being performed” due to lack of certainty?

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Litigation & Arbitration Publications
Litigation & Arbitration

Setting Aside of Arbitration Award : Duty to Provide a Reasoned Award and to Consider Parties’ Submissions

Kebabangan Petroleum Operating Company Sdn Bhd v Malaysia Marine and Heavy Engineering Sdn Bhd [W-02(C)(A)-1836-09/2022]

Could an application to set aside an award be sustained on the ground of a failure to provide reasons, assuming the parties had agreed to adopt the UNCITRAL or AIAC Rules? If on a reading of the award, it appears that the Tribunal had disregarded parties’ submissions or without considering the merits of parties’ submissions, would that tantamount to a breach of natural justice? Whilst natural justice does not require the Tribunal to respond to all of parties’ submissions, would the failure to address significant issues, which could have impacted the outcome of the award, constitute a breach of natural justice?

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