A breach of natural justice is treated in Malaysia as a conflict with public policy, and can be grounds for the Court to set aside an arbitral award.[1]
The breach of natural justice, though, must have been “significant or serious such as to have an impact on the outcome of the arbitration.”[2]
The following are selected examples of successful and unsuccessful attempts to set aside arbitral awards for breach of natural justice, and the purported breaches relied on.
Successful attempts
(a) The arbitrator failed to inform the parties of certain extraneous evidence that he was going to rely upon[3]
(b) The arbitrator considered two new matters which were not adduced as evidence in the arbitration, and which were not submitted by the parties before the arbitrator[4]
Unsuccessful attempts
(a) The arbitrator (a professional engineer & chartered arbitrator) drew on his own knowledge and expertise[5]
(b) There was a 4 years delay in the delivery of the arbitral award[6]
(c) The parties were not ‘forewarned’ of the possibility of the issuance of a reconciliation order[7]
Disclaimer: The contents of this article are intended for information dissemination and academic discussion only and should not be construed as legal advice on a specific set of facts or circumstances. Should you require legal assistance, you may contact us via email (liti@pelim.my) or via WhatsApp/telephone call (+6011-5672 7813).
[1] Section 37(1)(b)(ii) of the Arbitration Act 2005 read together with Section 37(2)(b) of the same Act
[2] Master Mulia Sdn Bhd v Sigur Rus Sdn Bhd [2020] 12 MLJ 198 (FC), at para 62
[3] Master Mulia Sdn Bhd v Sigur Rus Sdn Bhd [2020] 12 MLJ 198 (FC), at para 60
[4] Eng Han Engineering Sdn Bhd v Toshiba Elevator (M) Sdn Bhd & Anor (Formerly known as MS Elevators Engineering Sdn Bhd) and other appeals [2025] MLJU 1446 (CA), at para 27 and 36
[5] Pancaran Prima Sdn Bhd v Iswarabena Sdn Bhd and another appeal [2021] 1 MLJ 1 (FC), at para 90-92
[6] Asean Bintulu Fertilizer Sdn Bhd v Wekajaya Sdn Bhd and another appeal [2018] 4 MLJ 799 (CA), at para 10(a)
[7] Hindustan Oil Exploration Co Ltd v Hardy Exploration & Production (India) Inc [2023] 4 MLJ 113 (CA), at para 30