Non-payment of deposits does not automatically render arbitration agreement inoperable (JKP Sdn Bhd v Anas Construction Sdn Bhd)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• The first issue
• The second issue
• Case details

Article summary

Arbitration analysis: This case, insofar as pertinent points of arbitration are concerned, regarded the questions whether: (a) an arbitration agreement could be regarded as null and void, inoperative or incapable of being performed as a result of the non-payment of a portion of arbitration deposits; and (b) the filing of a striking out application of a civil suit due to the existence of an arbitration agreement was to be regarded as a submission to the jurisdiction of Malaysian courts. Written by Mubashir Mansor, senior Arbitration and Dispute Resolution partner), Dr Harald Sippel, foreign lawyer and head of European desk) and Raja Nadhil Aqran, senior associate at Skrine.