25.1(e) if he fails to comply with the provisions in Clause 17.0; or 25.1(f) if he has abandoned the Works.” [39] Although the plaintiff argued that the determination by the defendant is in bad faith and/or without basis, I am of the considered opinion and I agree with the defendant that this is a matter of fact, as to whether the determination took place solely because the persistent refusal of the plaintiff to comply with the Architect’s Instructions. [40] Despite the Plaintiff stating that it was ready to comply with the Architect’s Instruction if a Variation Order was issued by the Architect and/or the Architect has no basis in issuing the Architect’s Instruction to compel the plaintiff to substantiate the alternative design, there is nothing in the contract which entitled the plaintiff to refuse to comply with the aforesaid Architect’s Instructions. [41] If the plaintiff was right in that a variation order ought to have been issued, it was contractually obliged to carry out the instruction first 19 and claim damages or a right to a variation order in arbitration later. It cannot force the Architect to issue a variation order by refusing to comply, especially in a situation which involves a critical safety issue. In this regard, I refer to The PAM 2006 Standard Form of Building Contract at page 109, where the learned authors stated very clearly that Clause 2.3 of the Conditions of Contract does not entitle the contractor to refuse to comply with what is subsequently determined to have been a valid instruction. It is therefore prudent for the contractor to comply with the purported instruction which he challenges, having first made the request to refer it to dispute resolution under the Contract. [42] As such, I agree with the defendant that should the plaintiff have complied with the Architect’s Instructions after referring the dispute to arbitration, the defendant would not have determined the employment of the plaintiff under the Contract which subsequently gives rise to the right of the defendant to make a demand on the Bank Guarantee. [43] It is not in dispute that the defendant had issued a Notice of Default to the plaintiff to ensure that the plaintiff had the chance to rectify such default before the determination took place. In fact, prior to the Notice of Default being issued, the Architect had issued reminder to the plaintiff to comply with the Architect’s Instructions. But, the plaintiff still failed to comply with the Architect’s Instructions. 20 [44] Further, I agree with the defendant that the plaintiff had acted unreasonably by alleging that the plaintiff need not to justify the alternative design and should be allowed to proceed with the alternative design without interference. The Project involves two 80 storey towers with a ferry wheels in between the towers. This is a large scale Project which required meticulous examination and construction by the consultant and the contractor, especially when the plaintiff’s scope of works involves the foundation of these two huge buildings. [45] I agree with the defendant that it would be unreasonable for the plaintiff to proceed with the sub-structure works since Meinhardt discovered that there is insufficiency of the alternative design proposed by the plaintiff which required justification. [46] Therefore, having considered the facts leading to the termination, I am of the considered opinion that these circumstances do not in any event render the defendant being unconscionable as there is no unfair advantage and/or unfairness in relation to the determination of the Plaintiff’s employment. The determination was due to the persistent refusal of the Plaintiff to comply with Architect’s Instructions. 21 Issue – whether seeking replacement contractor amounts to unconscionable acts [47] The last issue raised by the plaintiff is that the defendant had acted unconscionably by seeking bids from replacement contractors to perform the same job. [48] I am of the considered opinion that it is commercially prudent for the Defendant as the Developer of the Project to seek quotations from other contractors to mitigate any loss of time, and damages which the Defendant may be exposed to from its end Purchasers in the event that the employment of the Plaintiff was determined. As such, such actions cannot possibly show a strong prima facie case of unconscionability, and merely demonstrates what actions any commercially prudent developer would take when faced with a potentially imminent loss of a contractor. The plaintiff’s contention [49] The plaintiff takes the position that the overall conduct of the defendant, from the late payments, the changing of consultant from Web Structure to Meinhardt, refusal to engage the plaintiff, failure to specify the contractual basis of the instructions given, the unreasonable refusal to grant a variation, unreasonable and/or vexatious termination and seeking bids from replacement contractors in bad faith, cumulatively establish a strong prima facie case for an injunction. 22 [50] The plaintiff relied on the case of Bina Jaya Mantap Sdn Bhd v Institute of Technology Petrona Sdn Bhd [2014] 11 MLJ 352 and submit as follows in paragraph 32 of its written submission: “32. …. Given the striking similarities between the facts in the instant case and the facts in Bina Jaya, where the court held that a strong, prima facie case for an injunction had been made out, it follows that injunctive relief should be granted in this case...” [51] However, if we look at the facts in Bina Jaya’s case, the facts are not strikingly similar. In paragraph 69 of the judgment, the Court has summarized the plaintiff’s complaints to be as follows: “[69] As I understand the plaintiff’s case, it claims that in the course of the execution of the works, it had faced innumerable impediments from the defendant’s representatives that were unreasonable; that it had received harassing or ‘antagonizing treatment’ which made it difficult and unbearable for the plaintiff to continue to work with the defendant. It further claimed that such impediments and treatment was because the plaintiff had refused to accede to one of the defendant’s representatives’ request for a bribe ‘in exchange for their corporation or fair treatment’. The plaintiff construed these impediments or actions and conduct of the defendant as a fundamental breach and 23 repudiation of the contract which it then proceeded to accept. [70] The critical allegations therefore are those pertaining to the ‘corporation fee’. The court will have to determine whether that incident ever took place; whether the plaintiff’s complaints of impediments, harassment or problems and difficulties encountered in the course of execution and implementation of the contract was in any way related or affected by this incident; and whether the defendant’s demand on the bank guarantee was thereby unconscionable in the circumstances..” (emphasis added) [52] Therefore, in Bina Jaya’s case there were complaints that the impediments faced by the plaintiff was because the plaintiff had refused to accede to one of the defendant’s representatives’ request for a bribe ‘in exchange for their corporation or fair treatment’. [53] In the present case, there is no complaints of similar nature, but merely complaints which relate to the execution of the Contract, and such matters can be properly resolved by arbitration. Indeed, in Bina Jaya’s case, the Court held that the plaintiff’s complaints on site possession, construction of burrow pits, drains and employment of the subcontractors, are matters which are properly for resolution by arbitration. It is the conduct of the representatives of the defendant, after having failed to secure the ‘corporation fee’ and 24 mounted the innumerable impediments on the plaintiff, that was found to be unconscionable by the Court. Conclusion [54] Premised on the reasons enumerated above, I am of the considered opinion that the defendant is entitled to make a demand on the Bank Guarantee as the nature of the Bank Guarantee is “on-demand” basis and unconditional. I also find that plaintiff is not able to show a strong prima facie case of unconscionability and therefore the application is dismissed with costs. (AZIZAH BINTI HAJI NAWAWI) JUDGE HIGH COURT MALAYA (Appellate and Special Powers Division 2) KUALA LUMPUR Dated: 27 August 2018 For the Plaintiff : Kamraj Nayagam/Dawn Wong Messrs Mah-Kamariyah & Phillip Koh Petaling Jaya, Selangor. For the Defendant: Allen Cheng Messrs Azman Davidson & Co Kuala Lumpur. 25 Cases referred: