Section 39 — AKTA TIMBANGTARA 2005

(a)

where that party provides to the High Court proof that—

(i)

a party to the arbitration agreement was under any incapacity;

(ii)

the arbitration agreement is not valid under the law to which the parties have subjected it, or, failing any indication thereon, under the laws of the State where the award was made;

(iii)

the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present that party’s case;

(iv)

the award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration;

(v)

subject to subsection (3), the award contains decisions on matters beyond the scope of the submission to arbitration;

(vi)

the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement

Arbitration 39

was in conflict with a provision of this Act from which the parties cannot derogate, or, failing such agreement, was not in accordance with this

Act; or

(vii)

the award has not yet become binding on the parties or has been set aside or suspended by a court of the country in which, or under the law of which, that award was made; or

(b)

if the High Court finds that—

(i)

the subject-matter of the dispute is not capable of settlement by arbitration under the laws of

Malaysia; or

(ii)

the award is in conflict with the public policy of

Malaysia.

(2)

If an application for setting aside or suspension of an award has been made to the High Court on the grounds referred to in subparagraph (1)(a)(vii), the High Court may, if it considers it proper, adjourn its decision and may also, on the application of the party claiming recognition or enforcement of the award, order the other party to provide appropriate security.

(3)

Where the decision on matters submitted to arbitration can be separated from those not so submitted, only that part of the award which contains decisions on matters submitted to arbitration may be recognized and enforced.