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Cases

TINDAK MURNI SDN BHD v. JUANG SETIA SDN BHD & ANOTHER APPEAL
Federal Court, Putrajaya
Tengku Maimun Tuan Mat CJ, Azahar Mohamed CJM, Nallini Pathmanthan, Vernon Ong, Abdul Rahman Sebli FCJJ
[Civil Applications Nos: 03-2-11-2018 (B) & 02(i)-104-11-2018 (B)]
17 February 2020
[2020] 2 MLRA 264

Judgment

Nallini Pathmanathan FCJ:

Introduction

[1] When the governing contract between two parties provides for an agreement to arbitrate, should that arbitration agreement be subordinated to a judgment in default obtained in court proceedings, contrary to the terms of the governing contract and effectively rendering the agreement to arbitrate, nugatory?

[2] This was the issue in the two related appeals before us. It necessarily involves a comprehension and application of s 10 of the Arbitration Act 2005.

[3] In the instant case, one of the contracting parties initiated court proceedings, notwithstanding the existence of an arbitration clause. As no appearance was entered by the other party, judgment in default was obtained. When an application to set aside the judgment in default fell to be determined, together with an application for a stay pending arbitration, the issues before the courts below included the following:

CASE HIGHLIGHTS

PRESS METAL SARAWAK SDN BHD v. ETIQA TAKAFUL BERHAD
Federal Court, Putrajaya
2016] 5 MLRA 529
[Civil Appeal No: 02(i)-27-04-2015(W)]
15 August 2016 [+]
TAN POOI YEE v. KETUA PENGARAH JABATAN PENDAFTARAN NEGARA
High Court Malaya, Kuala Lumpur
[2016] 5 MLRH 501
24NCVC-1306-08-2015
18 July 2016 [+]
ILANGOVAN KRISHNAN v. SHIYA SDN BHD
Industrial Court, Johor
[2016] 2 MELR 374
16/4-157/15
27 April 2016 [+]
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