22 March 2023

T Kuhendran, Esther Tan and Delvin Singh Mangat from Zul Rafique & Partner’s Construction Dispute Resolution Practice Group, acting for Petrotechnic Engineering and Construction Sdn Bhd (“PECSB”), has successfully resisted an injunction in connection with a bank guarantee for the sum of RM1,051,467.40 (the “BG”) issued in relation to a RM21 Million sub-contract. 

On 5.10.2022, M.E.B Technology Sdn Bhd (“MEB”) filed an Originating Summons in the High Court of Malaya at Kuala Lumpur (the “Court”) for, amongst others, an injunction to restrain PECSB from receiving sum pursuant to the BG. Broadly, MEB alleged that there was unconscionable conduct on the part of PECSB and that demands on the BG did not meet requirements of the BG.

PECSB had filed the relevant papers to defend the said allegations made by MEB. The Hearing was held on 13.1.2023.

After considering the relevant documents before it, and the submissions of counsels for the respective parties, the Court delivered its brief grounds on 10.2.2023, amongst others, holding as follows:

The various unconscionable conduct alleged by MEB are in fact contractual disputes which should be rightfully determined in Arbitration proceedings;

The demands have successfully complied with the terms of the BG.

Accordingly, the Court has dismissed MEB’s Originating Summons with costs.

Subsequently, MEB has filed an appeal on the decision of the Court and an application for an Erinford injunction to restrain the payment of sums under the BG to PECSB pending the appeal. Having read the relevant papers filed, and having heard the submissions of counsels for the respective parties, the Court has dismissed MEB’s application for an Erinford injunction with costs on 7.3.2023.

The Counsels for this case are:

T Kuhendran (Devan)
Esther Tan
Delvin Singh Mangat

For more insight into this area of law, please contact our Partners in the Construction Dispute Resolution Practice Group:
Kuhendran Thanapalasingam
Susan Tan Shu Shuen

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