MALAYSIAN FEDERAL COURT CONFIRMS THAT ONLY DISPOSITIVE SECTIONS OF ARBITRAL AWARDS ARE TO BE REGISTERED

The Malaysian Federal Court has resolved the recent debate about whether courts should recognise and enforce whole arbitral awards under Malaysian law. The Court clarified that only the dispositive sections of arbitral awards will be enforced by Malaysian courts under Section 38 of the Malaysian Arbitration Act 2005 (AA). Parties seeking to enforce arbitral awards … Read more

MALAYSIAN HIGH COURT UPHOLDS ARBITRATOR DISCRETION IN DECISION MAKING

The Malaysian High Court has set a useful precedent for arbitrator discretion when writing reasons in arbitration awards. In Allianz General Insurance Company Malaysia Berhad v Virginia Surety Company Labuan Branch, Originating Summons No. WA-24NCC(ARB)-13-03/2018, the Court dismissed an application to set aside a majority arbitration award under Section 37 of the Malaysian Arbitration Act … Read more

MALAYSIA’S HIGH COURT ALLOWS JUDICIAL INQUIRY OF DAMAGES FOR A WRONGFULLY GRANTED COURT-ORDERED INJUNCTION WITHOUT AWAITING THE OUTCOME OF THE ARBITRATION

In Jaks Island Circle Sdn Bhd v Star Media Group Bhd and Another (Originating Summons No. WA-24C(ARB)-11-02/2018), the Malaysian High Court considered whether an inquiry of damages arising out of an undertaking by an applicant to pay damages for an injunction wrongly granted by a court in support of arbitration proceedings should await the outcome … Read more

Herbert Smith Freehills – SMU Asian Arbitration Lecture

This year marks the ninth edition of the Herbert Smith Freehills – SMU Asian Arbitration Lecture Series. We are delighted that The Honourable Justice Judith Prakash will deliver the lecture on Wednesday 2 October, on the topic “The Court’s role in arbitral proceedings: regulator or promoter?” The Herbert Smith Freehills-SMU Asian Arbitration Lecture Series was … Read more

MALAYSIAN HIGH COURT CONSIDERS THE LEGALITY OF AN UNDERLYING CONTRACT WHICH WAS THE SUBJECT OF ARBITRATION

In Calibre M&E Sdn Bhd v PT Cooline HVAC Engineering (Originating Summons Nos. WA-24C(ARB)-47-09/2017 and WA-24C(ARB)-49-10/2017), the Malaysian High Court  considered an application to set aside an arbitral award on the basis that the recognition by the tribunal of the allegedly illegal underlying contract was in conflict with the public policy of Malaysia.  Section 37 … Read more

THE APPLICABILITY OF MALAYSIA’S FEDERAL COURT RULING ON THE AUTHORITY OF SHARIAH ADVISORY COUNCIL IN CIVIL DISPUTES TO ARBITRATIONS ON ISLAMIC FINANCE AND CAPITAL MARKETS

The Central Bank of Malaysia Act 2009 (“Act“) designated Malaysia’s Shariah Advisory Committee on Islamic finance (“SAC“) as the authority for ascertaining Islamic law for the purposes of Islamic financial business. According to Section 2 of the Act, “Islamic financial business” encompasses “any financial business in ringgit or other currency which is subject to the … Read more

MALAYSIAN COURT OF APPEAL CONSIDERS INJUNCTIONS TO RESTRAIN THE CALLING OF PERFORMANCE BONDS IN SUPPORT OF ARBITRATION

In the first half of 2019, Malaysia’s Court of Appeal considered no less than four appeals relating to applications to restrain the calling of performance bonds in the construction sector. These applications were made in support of arbitration under Section 11(1)(f) and (h) of the Malaysian Arbitration Act 2005 (“Act”) (prior to its amendments in … Read more