This does not mean that either the original Architect and/or the New/Replacement Architect cannot in any situation whatsoever, circumvent the said express prohibitions. To give business efficacy, it is nevertheless, implied that this can be done but on reasonable grounds which may include safety reasons, to prevent the breach of any laws/regulations, etc. and even to the extent that the original Architect if still in post would have the express/implied authority to do so. This has been conceded by the Respondent when it agreed that the New/Replacement Engineer was permitted to withdraw the “approval” granted by the 1st Engineer in relation to the Alternative Design due to concerns such as safety and design. If such concerns permit the Engineer in the absence of express provisions to the contrary to disregard/overrule previously granted “approvals”, etc. these should apply equally also to the Architect. In essence therefore, the blanket prohibition imposed on a New/Replacement Architect is not absolute but can be lifted in limited circumstances based on the particular facts and reasonable grounds; this being reinforced in the above-mentioned extract from the Building Law Encyclopedia cited by the Claimant; and …”. [85] Based on the above quoted passage from the Award, M101 submitted that the Arbitrator had found that the Architect and/ or New/ Replacement Architect can circumvent the prohibition on the Architect overruling any certificate, opinion, decision, approval or instruction given by the preceding Architect under Article 3 of the AoA on reasonable grounds which may include safety reasons. It is in this context that the term “Safety Exception” was used by M101. - M101’s Submissions [86] M101’s complaint was that the issue on whether the incoming Engineer in this case could have overruled the previous Engineer’s approval on safety grounds (the “Safety Exception”) was never intended to be determined in the arbitration proceedings. [87] It was additionally argued that since the Arbitrator has accepted that there is a Safety Exception which, if applicable, may lift up the prohibition under Article 3 of the AoA, he nevertheless decided that M101's Architect and New/ Replacement Engineer was bound by the approvals of the 1st. Engineer (Web Structures) in respect of the Alternative Design and that the New Instructions did not, in effect, overrule the previous approvals given by the 1st. Engineer, thus implying that the Safety Exception does not arise or apply in the arbitration. [88] According to M101, this matter involves a question of fact, to be determined with the benefit of witness evidence, in particular that of experts and tested in cross-examination and M101 would never have agreed for the issue to be conducted on a Documents Only basis if it had been alerted to the fact that such issue was to be determined in the arbitration proceedings. - GSB’s Submissions [89] In submitting for GSB, Mr. Kamraj emphasised that the Arbitrator did not, in any part of the Award, determine that “the Safety Exception does not apply in this arbitration”. To support his submission, the learned counsel referred to subpara 16(b) of M101’s AIR (encl. 9) wherein M101 had affirmed that “Having recognised that there is a Safety Exception where the Architect may on overruling in paragraph 175(2) of the Final Award …, the Arbitrator has implied that the Safety Exception does not apply in this arbitration when he had stated at paragraph 209 … that: “(209) From the foregoing and based on the totality of the Written Submissions, clarifications, authorities and contemporaneous documents, I find that the Respondent’s Architect and New/Replacement Engineer bound by the approvals of the 1st Engineer (Web Structure) and that the New Instructions could not under the Contract and hence did not, in effect overrule the previous approvals given by the 1st Engineer (Web Structure) in respect of the Claimant’s Alternative Design.””. [90] Based on the above excerpt, it was argued that M101 has acknowledged that there is no express finding by the Arbitrator that the Safety Exception does not apply in this arbitration, and that it was only by implication. [91] Furthermore, GSB’s counsel clarified that what the Arbitrator did was simply to determine that Article 3 of the AoA, which provides a prohibition on the Architect from disregarding and/ or overruling any certificate, opinion, decision, approval or instruction given by the preceding Architect, is applicable to the Engineer under Article 4 of the AoA. - Analysis and decision of the Court [92] Factually, GSB in its pleadings has always questioned the source of power in the issuance of the AIs and EIs, and more precisely, in paras 23 and 24 of the SoC, GSB had referred to Articles 3 and 4 of the AoA in taking the position that although Article 4 does not contain a similar provision as in Article 3, the Engineer should still be bound by the decisions of a previous Engineer and that the Engineer’s powers are ultimately subject to similar restrictions as those of the Architect. GSB reasoned that the Engineer’s powers are only those as are delegated to him by the Architect under the PAM Contract. [93] In the Statement of Defence, M101 alleged that GSB is misconceived in its arguments premised on Articles 3 and 4 of the AoA and highlighted the purported deficiencies in relation to the design parameters of the Alternative Design. To this, GSB responded that there were no deficiencies in the design as asserted by M101 as M101 had sought bids from replacement contractors to perform the same works that GSB had been performing, based on the same drawings which M101 alleged were defective (see para 10 of the Reply To Defence). [94] The parties’ written submissions in the arbitration proceedings covered mainly their respective arguments for or against a particular interpretation of Articles 3 and 4 of the AoA. In fact, one of the Tribunals’ 9 Questions was to request for the rules of construction that the parties have premised their respective arguments as the Tribunal recognised that the determination of the various issues in dispute invariably involves the construction or interpretation of the relevant express provisions in the Contract. Later, in the Award, it is evident that the Arbitrator had addressed his mind to the literal rule and purposive approach to statutory interpretation (see paras 176 to 186) before concluding that “… the application for the literal rule does not lead to a result that fairly reflects the intentions of the parties as expressed in the “four corners” of the Contract but results in inconsistency and absurdity. Applying the purposive test to give business efficacy, it can be implied that Articles 3 and 4 should share similar restrictions and prohibitions on the Architect and Engineer, especially so that the intended safeguards against possible abuse by the Architect could also be implemented for the other contract administrators, in particular, the Engineer in this case. Therefore, the prohibitions contained in Article 3, are especially applicable to Article 4 and to the facts of this case, not by express stipulations but by necessary implication.” in para 187 of the Award. [95] From my examination of the pleadings and written submissions before the Tribunal, the fact or issue as to whether the Safety Exception applied was never explicitly pleaded or raised. This was also clearly not one of the Agreed Issues. [96] Further, from my reading of the “Tribunal’s Findings” on the third issue in the Agreed Issues (paras 168 to 189 of the Award), the Arbitrator had, in the midst of his analysis, expressed the view that the prohibition on a New/ Replacement Architect from disregarding or overruling the decisions, opinions, certificates or approvals granted by the previous Architect is not absolute but can be lifted on reasonable grounds which include concerns as to safety and design. Such concerns were mentioned in para 175(2) of the Award by way of illustration. [97] I am unable to find anywhere in the Award that the Arbitrator had explicitly determined, as a matter of fact, the issue as to whether the Safety Exception applied. Based on M101’s submission in this Court, its stance is indeed that there was no express decision to that effect, however M101 contended that the Arbitrator’s unreserved determination that the New Instructions could not and did not overrule previous approvals, implies that the Safety Exception is not applicable. [98] It is my considered view that the affidavit evidence before this Court does not justify a finding that the Tribunal had impliedly decided in the manner as advocated by M101 and even if the Court is prepared to make a finding that the Tribunal had, by implication, concluded that the Safety Exception does not apply in the circumstances of this case, the Court is not inclined to set aside the Award based on implied grounds. [99] Ultimately, the Arbitrator had answered the third issue in the Agreed Issue in the affirmative in that the prohibition on the Architect overruling any certificate, opinion, decision, approval or instruction given by the preceding Architect under Article 3 AoA is applicable on the facts of the case also to the Engineer, even though there is no corresponding express prohibition under Article 4 AoA applicable to the Engineer, essentially as a matter of necessary implication to prevent possible abuses by other contract administrators such as the Engineer. This finding and conclusion was well within the jurisdiction of the Arbitrator and the terms of the submission to arbitration. [100] Therefore, the Court finds and holds that M101 has not established the 4th Ground of challenge to set aside the Award. 5th Ground: Whether the Award is in conflict with the public policy of Malaysia where a breach of natural justice occurred in connection with the making of the Award when the Arbitrator failed to give the parties a reasonable opportunity to lead evidence and make submissions that the Safety Exception did not apply (subparas 37(1)(b)(ii) and 37(2)(b)(ii) AA 2005) - M101’s Submissions [101] M101’s contentions pertaining to this ground follows through from the submission in respect of the 4th Ground in that, the Arbitrator, having decided that the Safety Exception was a relevant consideration in deciding whether the previous instructions could be overruled or superseded, it is thus imperative for the Arbitrator to allow parties to submit on this issue before making a final decision, especially considering that M101 had specifically pleaded in the Statement of Defence and extensively submitted in the Written Submissions dated 30.11.2018 that GSB’s alternative design is not sufficient to support the 80-storey towers. [102] In addition to not inviting the parties to address the Safety Exception, M101 argued that the Arbitrator had further deprived its submissions on the safety concern by disregarding the expert report by Ir. Dr. Wong Fook Keong dated February 2018 (‘Expert’s Report’). M101 maintained that the Expert Report was included at the earliest possible opportunity in the arbitration i.e. as one of the Appendices in the Statement of Defence and hence, to M101, it was most unfair for the Arbitrator to deem the Expert Report as an afterthought as the purpose of the Expert Report is to investigate Meinhardt’s concerns, which are of paramount importance as it is a safety issue. The mere fact that the Expert Report was produced after the events does not render it completely irrelevant. - GSB’s Submissions [103] GSB contended that M101’s assertion about not being given reasonable opportunity to lead expert evidence and/ or to make submissions on the Safety Exception is irrelevant since M101 itself had accepted that the Safety Exception was never an issue to be determined in the arbitration proceedings. - Analysis and decision of the Court [104] In view of the finding of this Court in respect of the 4th Ground as explained above, it necessarily follows that the issue of breach of the rules of natural justice in connection with the making of the Award simply does not arise as the Safety Exception was not one of the Agreed Issues and the Arbitrator did not make any express or implied finding that the Safety Exception is inapplicable in the instant case. [105] As to the point of argument on the Expert Report, it is observed that the Expert Report is expressly mentioned in subpara 8(e) of M101’s Statement of Defence and appended thereto as Appendix R4. M101 pleaded that the Expert Report corroborates Meinhardt’s findings and deficiencies in the Alternative Design were found. [106] GSB refuted M101’s pleadings as above stated in para 11 of the Reply To Defence wherein GSB claimed that the contents of the Expert Report are irrelevant. GSB also took issue with the date of the Expert Report because the parties have been in dispute since August 2017 and such report should have been commissioned as soon as the differences over the design arose. GSB pleaded that the irresistible conclusion that must be drawn from the fact that the Expert Report was prepared in February 2018 is that from August 2017, M101 was issuing instructions for GSB to re-substantiate, revise and resubmit the alternative design without basis. [107] Based on para 132 of the Award, the Arbitrator had considered the juxtaposed positions of the parties on the issue of the Expert Report and he has chosen to agree with GSB. M101’s grievance effectively relates to the Arbitrator’s decision whereas it is fundamental legal principle that this Court, in hearing the Setting Aside Application, is not to delve into the merits of the Award. [108] Hence, the 5th Ground of challenge must similarly be rejected as being devoid of any merits whatsoever. - Pronouncement [109] Premised on the reasons as elaborated in the preceding part of this judgment, M101 has failed to establish its case to set aside the Award under subparas 37(1)(a)(iv) and 37(2)(b)(ii) read together with subpara 37(1)(b)(ii) of the AA 2005 and therefore, the Setting Aside Application was duly dismissed with costs. II. O.S. No. WA-24C(ARB)-20-06/2020: The Enforcement Application [110] In the O.S., GSB had applied for the Award to be recognised and enforced against M101 by way of a judgment and/ or Order of this Court pursuant to ss 38 and 39 AA 2005. [111] M101 resisted the Enforcement Application largely on the ground that it has filed the Setting Aside Application. No averment was made by M101 as to whether GSB had fulfilled the requirements under paras 38(2)(a) and (b) AA 2005 in terms of the production of the duly authenticated original Award and arbitration agreement or duly certified copies of the same (see M101’s AIR in encl. 5). [112] Following from the decision to dismiss the Setting Aside Application and there being no other issue raised by M101 as to why the recognition and enforcement of the Award should be refused by this Court, the Enforcement Application was accordingly allowed with costs. Costs [113] On a final note, Mr. Kamraj prayed for costs of RM50,000.00 for the Setting Aside Application and RM10,000.00 for the Enforcement Application whilst Mr. Rajendra opined that RM20,000.00 for both applications would suffice. The Court, having considered the learned counsels’ submissions and the relevant factors to be taken into account (see O. 59, r. 16 of the Rules of Court 2012), awarded costs of RM15,000.00 for the Setting Aside Application and RM10,000.00 for the Enforcement Application with both orders being made subject to the payment of the allocatur fees. Dated: 20 May 2022 (ALIZA SULAIMAN) Judge Construction Court 2 High Court Kuala Lumpur Counsels/Solicitors: For the Applicant in O.S No. WA-24C(ARB)-15-06/2020 and the Defendant in O.S. No. WA-24C(ARB)-20-06/2020: Rajendra Navaratnam (Allen Cheng Peng Han and Brandon Shen Shi Han with him) Messrs. Azman Davidson & Co Advocates & Solicitors Suite 13.03, 13th Floor Menara Tan & Tan 207Jalan Tun Razak 50400 Kuala Lumpur For the Respondent in O.S. No. WA-24C(ARB)-15-06/2020 and the Plaintiff in O.S. No. WA-24C(ARB)-20-06/2020: Kamraj Nayagam (Maya Gayathri Devaruban with him) Messrs. Mah-Kamariyah & Philip Koh Advocates & Solicitors 3A07, Block B, Phileo Damansara II 15, Jalan 16/11, Off Jalan Damansara 46350 Petaling Jaya Selangor Cases referred to: Agrovenus LLP v Pacific Inter-Link Sdn Bhd and another appeal [2014] 3 MLJ 648 Allianz General Insurance Company v Virginia Surety Company Labuan Branch [2020] MLJU 331 Antara Steel Mills Sdn Bhd v. CIMB Insurance Brokers Sdn Bhd [2015] 5 CLJ 1018 Jan De Nul (M) & Anor v Vincent Tan Chee Yioun & Anor [2019] 2 MLJ 413 Kelana Erat Sdn Bhd v Niche Properties Sdn Bhd and another application [2012] 5 MLJ 809 Kerajaan Malaysia v Perwira Bintang Holdings Sdn Bhd [2015] 6 MLJ 126 Magna Prima Construction Sdn Bhd v Bina BMK Sdn Bhd and another case [2015] 11 MLJ 841 Master Mulia Sdn Bhd v. Sigur Rus Sdn Bhd [2020] 6 MLRA 51 Pancaran Prima Sdn Bhd v. Iswarabena Sdn Bhd & Another Appeal [2020] 9 CLJ 466 Perwira Bintang Holdings Sdn Bhd v Kerajaan Malaysia [2014] 11 MLJ 561 Petronas Penapisan (Melaka) Sdn Bhd v Ahmani Sdn Bhd [2016] 2 MLJ 697 Press Metal Sarawak Sdn Bhd v Etiqa Takaful Bhd [2016] 5 MLJ 417 Propel Synergy Sdn Bhd v Vistasik Sdn Bhd and another case [2022] MLJU 824 Sigur Ros Sdn Bhd v Master Mulia Sdn Bhd [2018] 3 MLJ 608 Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd [2007] SGCA 28; [2007] 3 SLR 86 Taman Bandar Baru Masai Sdn Bhd v Dindings Corporations Sdn Bhd [2009] MLJU 793; [2010] 5 CLJ 83 Tune Talk Sdn Bhd v Padda Gurtaj Singh [2020] 3 MLJ 184 Zenbay Sdn Bhd v Yong Choo Kui Shipyard Sdn. Bhd. [2015] MLJU 907 Legislation referred to: Arbitration Act 2005, ss 8, 35, 36, 37, 38 & 39 Rules of Court 2012, O. 59, r.