Judicial Approach To Application And Construction Of Arbitration Act 2005 In Malaysia: Section 37

Over the past few decades, Malaysia has sought to develop a refined and efficient system for alternative dispute resolution. Today, Malaysia has a relatively robust arbitration ecosystem. This article is part of a series that considers how the courts in Malaysia have construed and interpreted sections 8, 37 and 42 of the Arbitration Act 2005 (the 2005 Act) and, in particular, focuses on challenges to arbitral awards pursuant to section 37.¹

Background

Section 37(1) reads as follows:

1. An award may be set aside by the High Court only if -
   
   1. the party making the application provides proof that –
      
      1. a party to the arbitration agreement was under any incapacity;
      2. the arbitration agreement is not valid under the law to which the parties have subjected if, or, failing any indication thereon, under the laws of Malaysia;