PI BRILLIANT BHD v. ISLAH MEGA SDN BHD [2024] CLJU 71

Sumathi Murugiah JC (Shah Alam High Court, Selangor)

In November 2022, the Defendant initiated adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 (CIPAA) against the Plaintiff, with an adjudicator ruling in favour of the Defendant in March 2023. In the High Court, the Plaintiff sought to set aside the Adjudication decision by filing an Originating Summons to nullify the AD, secure a stay of execution, and obtain a Fortuna injunction. The dispute stemmed from a construction project in which the Defendant, a subcontractor, failed to complete the work, leading to various delays, financial claims, and mutual termination of their contract. The court found in favour of the Plaintiff that the adjudicator had indeed exceeded her jurisdiction under Section 15(d) of CIPAA 2012 by ruling on matters related to the termination of the contract, which fell outside the scope of CIPAA. As a result, the adjudication decision was set aside, and the Plaintiff's request for a Fortuna Injunction and Stay of Execution was dismissed as the AD has been set aside.

Aggrieved by this decision, the Defendant filed an appeal to the Court of Appeal, but was ultimately dismissed with cost. The High Court decision was upheld.

Marcus (together with Mr. Lim Tien Loong) represented the Plaintiff.