CASE UPDATE: CIPAA Adjudication Decision as The Basis of Winding Up without Enforcement Application

Likas Bay Precinct Sdn Bhd v Bina Puri Sdn Bhd [2019] 3 CLJ 499

In this case, the Court of Appeal ruled that the winning party in a CIPAA Adjudication Proceeding may proceed to issue a Statutory Notice of Demand under Section 466 of Companies Act 2016 (“466 Winding Up Notice”) to demand payment based on the Adjudication Decision without enforcing it as if it is a judgment or order of the High Court pursuant to Section 28 of CIPAA.

In the event that the losing party fails to meet the demand and pay the adjudicated sum, the winning party may proceed to file a petition to wind up the losing Respondent straightaway without filing the enforcement application in High Court.

Significance:

Pursuant to the above decision, it appears that the winning party in CIPAA Adjudication Proceeding may now issue a 466 Winding Up Notice to exert pressure to the losing party to pay the Adjudicated Sum, especially so when the 466 Winding Up Notice can be issued without having to enforce the Adjudication Decision pursuant to Section 28.

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