Pestech Technology Sdn Bhd was appointed by Lion Pacific Sdn Bhd as the sub-contractor for a project concerning the design, construction, equipping and maintenance of a railway.
MalaysiaLitigation, Mediation & Arbitration
The Malaysian High Court has refused to impose a condition on a
party seeking a stay of proceedings under section 10 of the
Arbitration Act 2005 to pay its share of the deposit in the
arbitration, on the basis that the issue of costs and expenses of
an arbitration are within the exclusive jurisdiction of the
arbitral tribunal. This decision highlights that the Malaysian
court's power to impose conditions on a stay under section 10
of the Act does not extend to matters that are governed by the Act
and within the exclusive jurisdiction of the arbitral tribunal.
Lion Pacific Sdn Bhd v Pestech Technology Sdn
Bhd (High Court Suit No:
BA-22NCvC-85-02/2021),
Background
Pestech Technology Sdn Bhd was appointed by Lion Pacific Sdn Bhd
as the sub-contractor for a project concerning the design,
construction, equipping and maintenance of a railway. Pestech was
contracted to complete certain works for an agreed sum of
approximately RM42 million. A dispute arose over
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