{"id":270,"date":"2025-08-06T04:10:02","date_gmt":"2025-08-06T04:10:02","guid":{"rendered":"https:\/\/www.cipaa-construction-malaysia.com\/?p=270"},"modified":"2025-08-06T04:11:13","modified_gmt":"2025-08-06T04:11:13","slug":"recommencing-a-cipaa-adjudication-after-a-decision-is-set-aside-under-section-15-of-cipaa-2012","status":"publish","type":"post","link":"https:\/\/www.cipaa-construction-malaysia.com\/?p=270","title":{"rendered":"Recommencing a CIPAA Adjudication After a Decision is Set Aside Under Section 15 of CIPAA 2012"},"content":{"rendered":"\t\t
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The <\/span>Construction Industry Payment and Adjudication Act 2012 (CIPAA)<\/b> was introduced to facilitate the speedy recovery of payments by contractors from employers in the construction industry. However, in certain exceptional circumstances, an <\/span>adjudication decision may be set aside<\/b> under <\/span>Section 15 of CIPAA 2012<\/b>.<\/span><\/p>

Section 15 Grounds for Setting Aside an Adjudication Decision<\/b><\/p>

Under <\/span>Section 15 of CIPAA<\/b>, a party aggrieved by an adjudication decision may apply to the <\/span>High Court<\/b> to have the decision set aside based on the following grounds:<\/span><\/p>

  • (a) The decision was obtained through <\/span>fraud or bribery<\/b>;<\/span><\/li>
  • (b) There was a <\/span>denial of natural justice<\/b>;<\/span><\/li>
  • (c) The adjudicator failed to act <\/span>independently or impartially<\/b>;<\/span><\/li>
  • (d) The adjudicator acted <\/span>beyond his jurisdiction<\/b>.<\/span><\/li><\/ul>

    Can a Fresh CIPAA Claim Be Initiated After a Decision is Set Aside?<\/b><\/p>

    This issue was addressed in the landmark case of <\/span>Wong Huat Construction Co v Ireka Engineering & Construction Sdn Bhd [2018] 7 MLJ 659<\/b>. The High Court clarified that when an adjudication decision is set aside under Section 15, <\/span>both parties are returned to their pre-adjudication status<\/b>\u2014as if the adjudication had never occurred. Consequently, the <\/span>claimant is not barred<\/b> from filing a <\/span>new CIPAA adjudication<\/b> for the same claim. This is not regarded as a \u201crepeated claim\u201d.<\/span><\/p>

    Case Summary: Wong Huat v Ireka Engineering<\/b><\/p>

    In this case, <\/span>Wong Huat Construction Co<\/b> was appointed as a subcontractor by <\/span>Ireka Engineering<\/b> to carry out painting works valued at <\/span>RM1,019,570.40<\/b>. Disputes arose over <\/span>additional variation works<\/b> and <\/span>outstanding payments<\/b>. The subcontractor submitted a <\/span>CIPAA payment claim<\/b> of <\/span>RM231,277.17<\/b>, but the adjudicator only awarded <\/span>RM29,791.73<\/b> based on revised payment certificates introduced by the respondent.<\/span><\/p>

    Unhappy with the reduced award, the claimant applied to <\/span>set aside the adjudication decision<\/b> under Section 15. The Court found that a claimant who receives significantly <\/span>less than the amount claimed<\/b> can still be considered an <\/span>\u201caggrieved party\u201d<\/b> under CIPAA, and therefore has the legal standing to apply for a setting aside.<\/span><\/p>

    High Court\u2019s Position on Re-Filing CIPAA Claims<\/b><\/p>

    Justice <\/span>Lee Swee Seng<\/b> (as he then was) ruled that once an adjudication decision is set aside, the <\/span>original claim can be refiled<\/b> under CIPAA. The Court emphasized that <\/span>Section 15<\/b> was intended to address <\/span>procedural irregularities<\/b> and ensure that <\/span>justice is upheld<\/b>, not to limit the unpaid party’s remedies to only arbitration or litigation.<\/span><\/p>

    \u201cWhere an adjudication decision has been successfully set aside, the parties return to their original positions. The unpaid party may initiate a <\/span>new CIPAA adjudication<\/b>, and such a claim will not be barred as a duplicate,\u201d \u2013 <\/span>Wong Huat Construction v Ireka Engineering<\/span><\/i>.<\/span><\/p>

    This position aligns with international legal practice, as seen in cases like <\/span>Westwood Structural Services Ltd v Blyth Wood Park Management Company Ltd [2008] EWHC 3138 (TCC)<\/b>, where multiple adjudications were permitted on the same dispute.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    The Construction Industry Payment and Adjudication Act 2012 (CIPAA) was introduced to facilitate the speedy recovery of payments by contractors […]<\/p>\n","protected":false},"author":1,"featured_media":271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nRecommencing a CIPAA Adjudication After a Decision is Set Aside Under Section 15 of CIPAA 2012 - 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