JUDGMENT

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.