Limits To Adjudicators' Powers

Our Tasha Lim discusses the High Court's decision in Cescon Engineers Sdn Bhd v Pesat Bumi Sdn Bhd and another case [2022] 9 MLJ 79 with respect to adjudicators' powers.

Introduction

Adjudicators are granted wide discretionary powers under section 25 of the Construction Industry Payment and Adjudication Act 2012 (CIPAA).

The High Court recently discussed whether there is a limit to the adjudicator's powers to "inquisitorially take the initiative to ascertain the facts and the law required for the decision", especially when such facts and law would have a significant impact upon the adjudication decision.¹

Facts

The defendant, Pesat Bumi Sdn Bhd (PB), appointed:

• Geo Hill Construction Sdn Bhd (Geo Hill) to carry out the construction of a building; and