22 January 2024

T Kuhendran, Esther Tan and Delvin Singh Mangat from Zul Rafique & Partners’ Construction Dispute Resolution Practice Group, acting for Petrotechnic Engineering and Construction Sdn Bhd (“PECSB”), has successfully resisted an appeal arising from a decision refusing to grant 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 10.2.2023, the High Court of Malaya at Kuala Lumpur (the “High Court”) dismissed an application by M.E.B Technology Sdn Bhd (“MEB”) for, amongst others, an injunction to restrain PECSB from receiving sum pursuant to the BG. Being dissatisfied with the decision of the High Court, MEB filed a Notice of Appeal on 16.2.2023.

Amongst others, MEB alleged that the High Court had erred both in fact and in law in deciding that:
(a) 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.

In response, PECSB submitted comprehensive arguments addressing MEB’s allegations. The case proceeded to a Hearing on 5.1.2024, where parties presented their respective positions.

After considering the relevant documents before it, and the submissions of counsels for the respective parties, the Court of Appeal affirmed the High Court’s decision. Accordingly, the Court of Appeal dismissed MEB’s Appeal with costs.

This victory before the Court of Appeal underscores the strength of our Construction Dispute Resolution Practice Group in navigating intricate legal challenges. Zul Rafique & Partners congratulate T Kuhendran, Esther Tan, and Delvin Singh Mangat for their exceptional advocacy in safeguarding PECSB's interests. Their success further affirms our commitment to delivering exceptional legal solutions.

The Counsels for this case are:

T Kuhendran (Devan)
Esther Tan
Delvin Singh Mangat

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