JUDGMENT

Che Mohd Ruzima Ghazali JCA:

Introduction

[1] The sole issue to be determined in this appeal is whether, when an action filed in court is stayed under s 10 of the Arbitration Act 2005 (AA 2005) for the disputes to be referred to arbitration, the computation of limitation period stop at the time when the action is filed in court or ceases when the notice of arbitration is served thereafter?

[2] The issue arose from an action filed by SH Builders & Marketing Sdn Bhd (plaintiff/respondent) against Bongsor Bina Sdn Bhd (defendant/ appellant) at Kuala Lumpur Sessions Court via suit No WA-B52(NCvC)-350-08/2019 (the KLSC suit 350). It is an undisputed fact that the cause action was still within the limitation period when the KLSC suit 350 was filed in court, but limitation had set in when the notice of arbitration was served after the court action has been stayed.

[3] For ease of reference, parties will be referred to as they were in the High Court, the plaintiff and the defendant.

Facts Of The Case

[4] The relevant background facts of this case have been set out in the Grounds of Decision (the GOD) of the learned High Court Judge (the LHCJ) dated 2 December 2022, from which the current appeal arises. For the purpose of this appeal, a brief summary, largely derived from the GOD, is provided below.

[5] The Defendant is the main contractor appointed by LB Development Sdn Bhd to construct and complete the project described as "Cadangan Membina 12 Unit Banglo 1 Tingkat Yang Mengandungi Type A - 6 Unit dan Type B - 6 Unit Berserta 1 Unit Substation di Atas Lot 2512, Seksyen 36 Poskod 40470 Shah Alam" (the said Project).

[6] By a letter of award dated 26 June 2012 (LOA) which included an arbitration agreement, the defendant appointed the plaintiff as its subcontractor for the said Project. The commencement date and completion date for the said Project, as per the LOA, were set as 26 June 2012 and 25 June 2013, respectively.