


Volume 20 No 12 (2022)
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CIRCUMVENTING THE ARBITRATION AGREEMENT IN CONSTRUCTION CONTRACTS: NEW FRONTIERS IN TINDAK MURNI SDN BHD V JUANG SETIA SDN BHD
A.M. Abdul Razak , S. MohdZin , N.E., Rahmat , and N.H., Fathi
Abstract
The arbitration agreement in standard form construction contracts is rampant in the industry
whereby parties chose in advance their preferred dispute resolution method should the need for
it arises. There are a plethora of cases where the courts have taken an active step to uphold
contractual parties' autonomy in determining their rights and obligations arising from their
contractual relationship, including the stipulation as to agreement to arbitrate their dispute and
differences. Using a doctrinal study, this paper examines the legal position concerning
arbitration agreements, especially dealing with a unilateral attempt to divert disputes or
differences to a civil suit in Court. Tindak Murni v Juang Setia cemented the position of the law
regarding the courts' powers in safeguarding the arbitral process, which is consistent with
practices in the United Kingdom and Singapore. Construction industry players are
recommended to pay close attention to their dispute resolution clauses to avoid such matters
escalating to a seemingly endless litigation process. Should an arbitration agreement be
included in the construction contract, parties should bear in mind the steps taken to avoid being
posited as acquiescing to the court proceeding and abandoning the arbitral process.
Keywords
Arbitration Agreement, Construction Contract, Stay of Proceedings, Judgment in Default, New Frontiers
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