Tag: Winning Party

Construction Industry Payment and Adjudication Act 2012

Tag: Winning Party

CIPAA Consulting News & Update Background

CASE UPDATE: Recommencement of CIPAA Proceeding if the Adjudication Decision is Set Aside

Wong Huat Construction Co v Ireka Engineering & Construction Sdn Bhd [2018] 7 MLJ 659

If an Adjudication Decision is successfully set aside pursuant to Section 15 of CIPAA, all parties will be restored to their original positions as though the earlier Adjudication did not take place.

As a result, the Unpaid Party / Claimant is entitled to re-commence a fresh CIPAA Proceeding instead of arbitrating / litigating the matter.

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Enforcement of CIPAA Adjudication Decision

Under the Part IV of Construction Industry Payment and Adjudication Act 2012, there are 3 methods of enforcement which can be exercised concurrently:-

Section 28: Enforcement of Adjudication Decision as Judgment

Section 29: Suspension or reduction of rate of progress of Performance

Section 30: Direct Payment from Principal

Winding up Proceeding: The winning party may also seek to enforce the Adjudication Decision by issuing a Statutory Demand under Section 466 of Company Act 2016. If the losing party fails to meet the demanded Adjudicated Sum within 21 days, the winning party may proceed to wind up the losing party and liquidate its assets to meet the debt.

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