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CIPAA over-rides Companies Act provision against preferential payment of creditors
Ordinarily, once a company is facing winding-up proceedings, it is not allowed to prefer one unsecured creditor over another. Otherwise, it would be construed as the company defrauding one of its creditors. However, the Court of Appeal in CT Indah...
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Adjudication Under CIPAA Act 2012 Malaysia
The Construction Industry Payment and Adjudication Act (CIPAA) was enacted by the government of Malaysia in 2012. It came into effect in April 2014. The Act aims at providing cost-effective, quick and efficient resolution to the cash flow issues being...
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CIPAA Act 2012: A Complete Guide for the Malaysian Construction Industry
The construction industry is the most essential part of a country’s economy. It is also a fertile ground for many disputes. Delay in payments of construction projects hinders the potential economic growth. The withheld payments result in over-run of cost,...
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CIPAA Procedure For Construction Disputes
The growth of the construction industry in Malaysia has given rise to several construction-related disputes. To address these problems, the Construction Industry Payment & Adjudication Act (CIPAA), 2012 was enacted by the Parliament. It came into effect from 15th April...
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Breaking News: CIPAA only operates prospectively
On 16 October 2019, the Federal Court in the case of Jack-in-Pile (M) Sdn Bhd v Bauer (Malaysia) Sdn Bhd ruled the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) only operates prospectively. This means that any construction contract entered...
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Repercussions of not filing a payment response
Contrary to what is suggested in the title, the respondent in an adjudication proceeding would not be subject to repercussions if he were to not to file or serve a valid payment response. This is because there is a provision...
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To CIPAA or not to CIPAA?
Are you thinking of whether to pursue adjudication through CIPAA instead of arbitration or litigation? Here are some differences to help you make an informed decision: Statutory Adjudication (CIPAA) Litigation or Arbitration Statutory adjudication is confined to payment disputes under...
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Enforcing Direct Payment from Principal under s.30 CIPAA
Section 30 CIPAA provides as follows: “(1) If a party against whom an adjudication decision was made fails to make payment of the adjudicated amount, the party who obtained the adjudication decision in his favour may make a written request...
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CIPAA update – A case of creeping complexities?
CIPAA Update June 2019 - a case of creeping complexities? from Kheng Hoe Advocates
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