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A p r i l 2 0 11 , r e f u s i n g t o g r a n t t h e A p p e l l a n t a n e x t e n s i o n o f t i m e
Court to extend time to set aside the award and to set aside the
t i m e a n d c o n s e q u e n t l y, t h e e n t i r e a p p l i c a t i o n t o s e t a s i d e t h e
e l e c t r i c i t y. T h e P D A w a s g o v e r n e d b y N e w Yo r k l a w, a n d i n t h e
mechanism.
a g r e e d t h e l a w g o v e r n i n g t h e a r b i t r a t i o n i s N e w Yo r k l a w a n d
t h e s e a t o f t h e a r b i t r a t i o n w a s K u a l a L u m p u r. T h e a r b i t r a t o r s
10. The application to set aside the award carried with it a prayer to
extend time to set aside the award. That prayer was disallowed
11 . T h e A p p e l l a n t ’s a p p l i c a t i o n t o s e t a s i d e a n a r b i t r a l a w a r d i s
provides that:
“an application to set aside an award may not be made after expiry
of ninety days from the date on which the party making the
award but refused to exercise the same on the ground that the
[2011] 1 LNS 1903 Legal Network Series
stated by the Appellant for the delay “prima facie do not warrant
the court to condone the delay” . The learned High Court judge
a l s o a g r e e d w i t h t h e A p p e l l a n t ’s c o n t e n t i o n t h a t s e c t i o n 3 7 ( 4 ) o f
t h e A r b i t r a t i o n A c t 2 0 0 5 w a s d i r e c t o r y a n d n o t m a n d a t o r y, i n a
limited sense.
13. The learned High Court judge further held that “the substantive
meri t of the applica tion to set aside the award cannot be sine
q u a n o n t o c o n s i d e r a n a p p l i c a t i o n t o c o n d o n e d e l a y re l a t i n g t o
A A 2 0 0 5 w h e re p a r t i e s h a v e a g re e d t o a r b i t r a t i o n p ro c e e d i n g s
c o u n s e l s a n d h a v e re c e i v e d t h e a w a rd f ro m t h e t r i b u n a l , b u t
learned High Court judge, that the High Court has the
time prescribed. Order 3 Rule 5(1) and (2) of the Rules of the
High Court 1980, also provides for the same power to the court.
15. Therefore, the only issue in the present appeal is whether in the
c i r c u ms t a n c e s o f t h e c a s e a n d i n t h e e x e r c i s e o f t h e c o u r t ’s
applications is granted.
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( S e e : T h e G o v e r n m e n t o f I n d i a v. C a i r n E n e r g y I n d i a P t y
“Order 3 r. 5(1) and (2) of the Rules of the High Court 1980 (‘the
there was no intention to ignore or flout the order and that the
……
( S e e a l s o : F i n n e g a n v. P a r k s i d e H e a l t h A u t h o r i t y [ 1 9 9 8 ] 1
has the widest measure of discretion and the court shall look
[2011] 1 LNS 1903 Legal Network Series
applicant need not file a separate application for that. This was
m a d e c l e a r b y t h e C o u r t o f A p p e a l i n P e r c o n C o r p S d n B h d v.
Ya p C h o o n L o y [ 1 9 9 8 ] 3 M L J 8 6 7 , w h e r e S i t i N o r m a Ya a k o b
JCA stated:
“The learned trial judge had misdirected himself when he held that
s e t a s i d e t h e a w ard ( P r o d e x p o r t S t a t e C om p an y f or F o r e i g n
c o n t r a c t s w as n o t c o v e r e d w i t h i n t h e a m b i t o f t h e a g r e e me n t t o
a g r e e m e n t t o a r b i t r a t e . T h e H i g h C o u r t ’s d i s m i s s a l o f t h e
application to set aside the award on the basis that it was filed
i n d i v i d u a l b u t i n s t i t u t i o n a l , i n v o l v i n g d e c i s i o n ma k i n g p r o c e s s a t
S t a t e o f H a r y a n a v. C h a n d r a M a n i & O t h e r s [ 1 9 9 6 ] A I R S C
1 6 2 3 a n d G e n u i n e P a i n t s & C h e m i c a l s C o . v. U n i o n o f I n d i a
7 3 [ 1 9 9 8 ] D LT 2 9 6 , [ 1 9 9 8 ] 2 ( R a j ) 2 0 6 ( D e l ) ) .
22. I n t h e G o v e r n m e n t o f I n d i a v. C a i r n E n e r g y I n d i a P t y L t d
t h e H i g h C o u r t ’s d e c i s i o n o n o t h e r g r o u n d s a n d t h e m a t t e r i s
pending in the Federal Court). The court accepted the fact that
the foreign state did not intend to flout local laws; had filed an
Respondent.
w o r l d w i d e p r o c e e d i n g s t o e n f o r c e t h e a w a r d i n N e w Yo r k ,
France and London. The Appellant was put to the time costs
[2011] 1 LNS 1903 Legal Network Series
that the Appellant was advised by its legal advisers of the need
of time.
24. The Appellant should not be prejudiced by the fact that it was
not conversant with local law requirements and did not receive
c i r c u m s t a n c e s ( S e e : A S M S h i p p i n g L t d o f I n d i a v. T T M I L t d
o f E n g l a n d ( T h e A m e r E n e rg y ) [ 2 0 0 9 ] 1 L l o y d ’s R e p 2 9 3 ) .
26. In the present case the Appellant had acted expediently to the
idle while the time limit lapsed. The Appellant had spent time
had to set aside the award in Mala ysia and that there were
27. I n G o l d C o a s t L t d v. N a v a l G i j o n S A [ 2 0 0 6 ] 2 L l o y d ’ s R e p
under the slip rule. In that case the application was granted.
T h e c o u r t r u l e d t h a t o n t h e f a c t s , t h e b u ye r s ( t h e a p p l i c a n t s )
the yard were to receive a windfall benefit and the buyer were to
amount.”
28. The Respondents argued that they would suffer prejudice if the
Appellant. On the other hand, the court is of the view that the
granted.
S t e a m s h i p C o . L t d [ 1 9 7 9 ] 2 L l o y d ’s R e p 2 8 9 ) . I n t h a t c a s e
begin the arbitration with the prima facie presumption and went
ground that the decision of the arbitrator was right on the facts
of the case.
30. The learned High Court judge in the present case relied so
is trite that the Arbitration Act 2005 has prima facie accepted
t o w a rd s t h e j u r i s p r u d e n c e re l a t i n g t o “ m i n i m u m i n t e r v e n t i o n o f
31. Wi t h r e s p e c t , w e a r e n o t i n a g r e e m e n t w i t h t h e l e a r n e d j u d g e o n
M o d e l L a w, i t d o e s n o t i n a n y w a y t a k e a w a y t h e p o w e r s o f t h e
T h e r e i s n o e x p r e s s p r o v i s i o n t o t h a t e f f e c t . T h e M o d e l L a w,
appropriate case.
32. Hong Kong has adopted the Model Law as part of her
C o . L t d v. E l e v a t o r P a r t s E n g i n e e r i n g C o L t d [ 1 9 9 7 ] 1 H K C
[2011] 1 LNS 1903 Legal Network Series
confidence in arbitration.
33. I n t h a t c a s e t h e c o u r t a l s o a c k n o w l e d g e d t h a t d e s p i t e t h e d e l a y,
p r ej u d i c e ” a n d t h e a r b i t r a t o r, i n a w a r d i n g i n t e r e s t , d i d n o t
34. I n t h a t c a s e t h e c o u r t h e l d t h a t t h e c o u r t ’s j u r i s d i c t i o n t o g r a n t
r e a s o n s f o r t h e d e l a y. I n a l l o w i n g t h e a p p e a l P a t r i c k C h a n J
briefly make the following two points. First, it is unfortunate that the
explanation for the delay and did not express any views on the
arbitrator here did not make any specific finding on all but one of
the points raised by the parties and the only reason he gave for
substantially affects the rights of the parties but would also have
35. In the present case the Appellant challenged the arbitral award
e x e r c i s i n g j u r i s d i c t i o n o v e r t h e A p p e l l a n t ’s d i s p u t e s w i t h
36. These are good reasons to extend time as applied for bearing
further fact that the Respondents are well aware, from the
Conclusion
37. This court is of the view that this is an appropriate case for the
o r d e r. I n o r d e r t o f a c i l i t a t e t h e a b o v e o r d e r, t h i s c o u r t m a k e s a
f u r t h e r o r d e r t h a t t h e A p p e l l a n t ’s a p p l i c a t i o n f o r s e r v i c e o f t h e
Appellant.
RAMLY HJ ALI
Judge
Court of Appeal
Malaysia
Counsel:
For the respondent - Sunil Abraham (Idza Hajar Ahmad with him); M/s Zul
Rafique & Partners
T h e G o v e r n m e n t o f I n d i a v. C a i r n E n e r g y I n d i a P t y L t d & O r s
[2003] 1 MLJ 348
F i n n e g a n v. P a r k s i d e H e a l t h A u t h o r i t y [ 1 9 9 8 ] 1 A l l E R 5 9 5
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P e r c o n C o r p S d n B h d v. Ya p C h o o n L o y [ 1 9 9 8 ] 3 M L J 8 6 7
P r o d e x p o r t S t a t e C o m p a n y f o r F o r e i g n Tr a d e v. E D & F M a n L t d
[ 1 9 7 2 ] 2 L l o y d ’s R e p 3 7 5
S t a t e o f H a r y a n a v. C h a n d r a M a n i & O t h e r s [ 1 9 9 6 ] A I R S C 1 6 2 3
G e n u i n e P a i n t s & C h e m i c a l s C o . v. U n i o n o f I n d i a 7 3 [ 1 9 9 8 ] D L T
296, [1998] 2 (Raj) 206 (Del)
T h o m a s v. B o o t y, E d w a r d s & P a r t n e r s [ 1 9 6 4 ] M L J 3 5 9
A S M S h i p p i n g L t d o f I n d i a v. T T M I L t d o f E n g l a n d ( T h e A m e r
E n e r g y ) [ 2 0 0 9 ] 1 L l o y d ’s R e p 2 9 3
G o l d C o a s t L t d v. N a v a l G i j o n S A [ 2 0 0 6 ] 2 L l o y d ’s R e p 4 0 0
B u l k Tr a n s p o r t C o r p o r a t i o n v. S i s s y S t e a m s h i p C o . L t d [ 1 9 7 9 ] 2
L l o y d ’s R e p 2 8 9
K w a n L e e C o n s t r u c t i o n C o . L t d v. E l e v a t o r P a r t s E n g i n e e r i n g C o
Ltd [1997] 1 HKC 97
Rules of the High Court 1980, Order 3 rule 5(1) & (2)