Court dismisses Global Upline’s application to set aside final award for KKB Builders

KUCHING: The Kuala Lumpur High Court has dismissed Global Upline Sdn Bhd’s application to set aside the Asian International Arbitration Centre (formerly known as Kuala Lumpur Regional Centre for Arbitration) arbitral tribunal’s final award in favour of KKB Builders Sdn Bhd over a dispute on the termination of a project’s sub-contract in 2012.

KKB Builders, which is a wholly-owned subsidiary of KKB Engineering Bhd, was awarded costs of RM5,000.
Under the arbitral tribunal’s published final award dated July 31, 2018, Global Upline has to pay KKB Builders about RM7.15 million and simple interest on the sum awarded at the rate of judgement rate per annum from the award date until payment date.

The other decision made by the arbitral tribunal is that Global Upline shall bear and pay its own costs and pay to KKB Builders the costs of arbitration (to be assessed or taxed by this tribunal, if not agreed), including the costs of the award (which the centre will confirm with the parties) provided always that if, in the first instance, KKB Builders has paid any part of the costs of the award, it shall be entitled to an immediate refund of the sum so paid.

However, on Nov 5, KKB Builders was served an originating summons by Global Upline through the Kuala Lumpur High Court for an order that the July 31 arbitration award be set aside and for a stay in the execution of the arbitration award pending the disposal of the summons.

Global Upline has also sought the court order that the costs of and incidental to its application be borne by KKB Builders.

Following the latest decision by the Kuala Lumpur High Court in dismissing Global Upline’s application to set aside the tribunal’s final award in favour of KKB Builders, KKB said in a filing with Bursa Malaysia that KKB Builders would categorically challenge and oppose any application and/or appeal served by Global Upline in connection with the dismissal.

KKB said KKB Builders would proceed with the application for recognition and enforcement thereof of the final award.

To recall, Global Upline had on June 26, 2012 sued KKB Builders after its sub-contract was terminated by KKB Builders.

Global Upline had sought, inter alia in its writ of summons, that the termination of the sub-contract was illegal, null and void, and claimed for about RM31.64 million from
KKB Builders.

In reacting to the suit, KKB then said that the company was of the opinion that Global Upline’s claim was ‘frivolous and vexations and without merit” and that it would counter-claim and seek all relief arising therefrom.

KKB Builders had strongly opposed Global Upline’s claims and stated that the sub-contract had been validly and duly terminated .

In the arbitration, the company had claimed overpayment and loss and damages arising from the breach by Global Upline.