Introduction
The Federal Court in ING Bank NV v Tumpuan Megah Development Sdn Bhd1 clarified that both the Reciprocal Enforcement of Judgments Act 1958 (“REJA”) and the Malaysian Arbitration Act 2005 (“MAA”) are valid enforcement routes that can be elected by award-creditors to enforce a foreign arbitral award in Malaysia.
Background
The dispute arose from contracts for the supply of marine fuel and its subsequent non-payment.
The Appellants obtained a favourable award in London arbitration under the London Maritime Arbitrators Association (“LMAA”) Rules of Arbitration (“the London Award”).
The Appellants were subsequently granted leave to enforce the London Award and judgment was entered in terms of the arbitral award by the English High Court pursuant to section 66 of the UK Arbitration Act 1996 (“the English Judgment”).
Relying on REJA, the Appellants registered the English Judgment in Malaysia.
The Respondent applied to set aside the registration pursuant to section 5 of the REJA, alleging fraud and lack of jurisdiction, and sought a trial on these issues.
The High Court dismissed the Respondent’s request for trial but the Court of Appeal reversed, holding that enforcement should properly be pursued under the MAA and allowed for a trial.
The Federal Court reinstated the High Court’s decision.
