Pembinaan LCL Sdn Bhd v SK Styrofoam Sdn Bhd 3AMR124 [2007]

Pembinaan LCL Sdn Bhd v SK Styrofoam Sdn Bhd 3AMR124 [2007]

The court was asked to decide on whether a High Court decision, which had overturned an arbitral award on the grounds of an error of law, was valid. SK Styrofoam Sdn Bhd was suing for breach under a contract governed by Article 25 of the Persatuan Arkitek Malaysia (Architects Association of Malaysia) Arbitration Rules.

The Appeal Court confirmed that in exercising its statutory jurisdiction under the Arbitration Act 1952, the High Court does not have appellate jurisdiction to overturn an arbitral award on the grounds of illeged error of law. The Appeal Court went on to rule there was no error of law that warranted the setting-aside of the arbitral award. The court confirmed the distinction between cases where a specific question of law has been referred to arbitration, in which no court interference is justified, and cases where a question of law becomes material in the decision rendered by the arbitrator, in which court interference is justified if there appears to be an error in the award.

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