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1 IN THE HIGH COURT OF MALAYA AT KUALA LUMPUR IN THE STATE OF WILAYAH PERSEKUTUAN, MALAYSIA (CIVIL DIVISION) ORIGINATING SUMMONS NO: WA-24C-174-10/2017 In the matter of an Adjudication between Infra Segi Sdn Bhd and Aston Villa Sdn Bhd And In the matter of Adjudication Decision by Mr Ramdas Tikamdas on 20 September 2017 And In the matter of Section 15(b), 15(d), 16(1)(a), 16(1)(b) and/or 16(2) of the Construction Industry Payment and Adjudication Act 2012 And In the matter of Order 7, Order 28 and Order 92, Rule 4 Rules of Court 2012 BETWEEN 2 ASTON VILLA SDN BHD (COMPANY NO : 344089-X) … PLAINTIFF AND INFRA SEGI SDN BHD (COMPANY NO : 351111-W) ... DEFENDANT (heard together with) IN THE HIGH COURT OF MALAYA AT KUALA LUMPUR IN THE STATE OF WILAYAH PERSEKUTUAN, MALAYSIA (CIVIL DIVISION) ORIGINATING SUMMONS NO: WA-24C-190-10/2017 In the matter of an Adjudication Decision by Mr Ramdas Tikamdas made on 20 September 2017 between Infra Segi Sdn Bhd and Aston Villa Sdn Bhd (Adjudication reference No. KLCRA/D/ADJ-0934-2017) And In the matter of Rules of Court 2012 And 3 In the matter of Section 28(1) and (3) of the Construction Industry Payment and Adjudication Act 2012 BETWEEN INFRA SEGI SDN BHD (COMPANY NO: 351111-W) ... PLAINTIFF AND ASTON VILLA SDN BHD (COMPANY NO: 344089-X) … DEFENDANT THE JUDGMENT OF Y.A. LEE SWEE SENG [1] Aston Villa Sdn Bhd (“Aston Villa”), as the Plaintiff, filed an application in Originating Summons No.: WA-24C-174-10/2017 (“the Setting Aside Application”) to set aside an Adjudication Decision given on 20.9.2017 by an Adjudicator with respect to a Payment Claim served by the Claimant Infra Segi Sdn Bhd (“Infra Segi”) on Aston Villa as Respondent in the Adjudication between the parties. Infra Segi was thus the Defendant in that application. 4 [2] Infra Segi, on the other hand, as the Plaintiff, also filed an application in Originating Summons No.: WA-24C-190-10/2017 (“the Enforcement Application”) to enforce the Adjudication Decision against Aston Villa as the Defendant. [3] Needless to say the Adjudication was a Statutory Adjudication under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”). [4] For consistency of reference and to avoid confusion in identities, the parties shall be referred to as Claimant and Respondent, as they were in the Adjudication, or sometimes as Infra Segi and Aston Villa respectively. Project [5] By a Letter of Acceptance dated 23.12.2010, the Respondent appointed the Claimant as the Contractor for a project called “Construction And Completion of 3 Blocks Office (Soho)(1080 Units) On Lot 1810 (Lot Baru 51628 & 51629), Jalan Kelang Lama, Kuala Lumpur” for a contract sum of RM277,694,462.00 (“the Contract”). [6] The Final Contract Sum was RM239,956,746.12 based on the Final Statement of Accounts which the Respondent refused to sign without stating which parts of Final Account they disagreed. 5 Problem [7] For all intents and purposes the Claimant had completed the Contract but the Respondent was not paying the balance Contract sum of RM10,223,318.96 to the Claimant. The Respondent’s Architect had issued the Certificate of Practical Completion (“CPC”) for the Project on 29.3.2013. The Defect Liability Period expired on 28.3.2014 which is 12 months from the date of the issuance of the CPC. [8] There was however a reluctance on the part of the Architect to issue the Certificate of Making Good Defects (“CMGD”). That was because of the complaint of the Respondent with respect to some defects that arose after the Defect Liability Period was over. [9] The Claimant had offered to rectify these defects on a goodwill basis but was denied permission to enter the premises to effect the rectification works. Having reached a stalemate the Claimant availed itself of the facilities of Statutory Adjudication under the CIPAA. Proceedings in Adjudication [10] The Claimant, as the unpaid party, served a Payment Claim on the Respondent pursuant to section 5 of the CIPAA and claimed for an outstanding sum of RM10,223,318.96 being the balance Contract Sum. 6 The Claimant also had claimed that the CMGD, the penultimate Certificate of Payment (pursuant to Clause 30.6) and the Final Certificate (pursuant to Clause 30.7) ought to be and/or ought to have been issued by the Architect. [11] The Respondent as the non-paying party did not serve a Payment Response. According to section 6(4) of the CIPAA the Respondent was deemed to have disputed the entire of the Payment Claim. [12] On 12.5.2017 the Claimant initiated the Adjudication proceedings by serving a written Notice of Adjudication under section 8 of the CIPAA. The said Notice contained the nature and description of the dispute and the remedy sought together with the supporting documents. [13] The Claimant duly served its Adjudication Claim on 4.7.2017 and the Respondent served its Adjudication Response dated 19.7.2017 pursuant to section 10 of the CIPAA. [14] In the Adjudication Response, the Respondent, for the first time, raised the following defences and cross claim and summarized as follows by the Adjudicator at paragraph 6.3 of the Adjudication Decision: