High Court in Malaysia declines to impose payment conditions for stay granted under section 10 of Arbitration Act 2005

28 April 2022

Lion Pacific Sdn Bhd v Pestech Technology Sdn Bhd [2021] MLJU 1404

On 10 January 2022, the High Court of Malaya at Shah Alam delivered its judgment in Lion Pacific Sdn Bhd v Pestech Technology Sdn Bhd. The grounds of judgment make clear the boundaries of a conditional stay granted pursuant to section 10 of the Arbitration Act 2005. This decision demonstrates the strict approach adopted by Malaysian courts in the spirit of the Arbitration Act 2005 in deferring disputes to arbitration where an arbitration agreement exists.

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