MASTER MULIA SDN BHD v. SIGUR ROS SDN BHD

[2020] 6 MLRA 51
Federal Court, Putrajaya
Mohd Zawawi Salleh, Vernon Ong, Abdul Rahman Sebli, Zaleha Yusof FCJJ, Badariah Sahamid JCA
[Civil Appeal No: 02(f)-33-05-2018(W)]
Mohd Zawawi Salleh, Vernon Ong, Abdul Rahman Sebli, Zaleha Yusof FCJJ, Badariah Sahamid JCA

JUDGMENT

Vernon Ong FCJ:

Introduction

[1] The questions of law for which leave was granted concerns the interpretation of s 37 of the Arbitration Act 2005 (AA 2005). Essentially, it relates to the question of: (i) whether the High Court is bound to set aside an arbitration award as a matter of course where a complaint of breach of the rules of natural justice is established; and (ii) whether the High Court is bound to set aside the whole award where the complaint in respect of only one of three principal issues before the arbitrator is made out. For the purposes of this appeal, it is necessary to appreciate the salient background facts.

Background Facts

[2] Pursuant to a Charter Party Agreement (CPA), Master Mulia (appellant) hired out its vessel to Sigur Ros (respondent) for undersea pipelines installation works in the high seas. Installed on the vessel was a pipeline installation arm called a Stinger Hitch which was essential to the works. Under the CPA, the respondent was to redeliver the vessel on or before the expiry of the charter period on 26 January 2013; in default thereof, the respondent was liable to pay a certain daily sum until the redelivery. As the Stinger Hitch was damaged on 9 January 2013, the respondent suspended works and carried temporary repairs to the damaged Stinger Hitch to enable it to complete the remaining works.

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