Court orders Works Minister, de-facto Law Minister and Govt to be defendants in contractor's suit

KUALA LUMPUR (Oct 30): The High Court today ordered the Works Minister, the de-facto Law Minister and government to be defendants in a suit brought by contractor Mega Sasa Sdn Bhd against the Asian International Arbitration Centre (AIAC), its director Vinayak Pradhan, Kinta Bakti Sdn Bhd and one Soh Lieh Sieng.

The order was made by Justice Lim Chong Fong on an application made by Mega Sasa's lawyers T. Gunaseelan and Arun Kasi.

Senior federal counsel Alice Loke appeared for the Government.

In its suit, Mega Sasa mounted a challenge on the Construction Industry and Payment Adjudication Act 2012 (CIPA Act 2012).

“The case will have far-reaching consequences on the construction industry payment adjudication system currently in operation in Malaysia,” said Arun in a statement to theedgemarkets.com.

The company is challenging:

i) The constitutionality of the Construction Industry and Payment Adjudication Act 2012;

ii) The constitutionality of the Schedule of Adjudicator's fee prescribed by the Minister in the Construction Industry Payment and Adjudication Regulations 2014, under Art 8(1) of the Federal Constitution

iii) The legality Schedule of AIAC's Administrative Fees prescribed by the AIAC in the AIAC Adjudication Rules & Procedure, under Section 32 of the CIPA Act 2012

iv) The validity of Vinayak's appointment as AIAC director by the Malaysian Government due to lack of consultation with the African-Asian Legal Consultative Organisation (AALCO), as required by the agreement between the Government and AALCO.

Arun also said that various parties like the Bar Council, Malaysian Society of Adjudicators, Construction Law Society Malaysia, Malaysian Institute of Arbitrators and Chartered Institute of Arbitrators (Malaysian branch) are holding a watching brief in the case as they are given amicus curiae status.

Justice Lim will also hear the contractor's application to cross-examine Attorney General Tan Sri Tommy Thomas in this case upon the AG's affidavit filed in this case on Nov 13.

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