vii
TABLE OF CONTENTS
CHAPTER
TITLE
PAGE
DECLARATION OF THESIS
SUPERVISOR’S DECLARATION
1
TITLE PAGE
i
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xi
LIST OF FIGURES
xii
LIST OF ABBREVIATIONS
xiii
LIST OF CASES
xiv
INTRODUCTION
1.1
Background of Study
1
1.2
Problem Statement
4
1.3
Objective of Study
6
1.4
Scope and Limitation of Study
6
1.5
Significance of Study
7
viii
1.6
1.7
2
Research Methodology
7
1.6.1 Stage 1: Initial Study
8
1.6.2 Stage 2: Data and Information Collection
8
1.6.3 Stage 3: Data Analysis
9
1.6.4 Stage 4: Conclusion and Recommendation
9
Organisation of the Study
11
1.7.1 Chapter 1: Introduction
11
1.7.2 Chapter 2: Set-off
11
1.7.3 Chapter 3: Profiling Methodology
12
1.7.4 Chapter 4: The Profile of Construction Setoff Cases
12
1.7.5 Chapter 5: Conclusion and
Recommendations
12
SET-OFF
2.1
Introduction
13
2.2
Terminology and Meaning
14
2.3
General Principles of Set-off
17
2.4
Types of Set-off
18
2.4.1 Statutory Set-off
19
2.4.2 Equitable Set-off
20
2.4.3 Contractual Set-off
22
2.4.4 Legal Set-off
23
Set-off, Counterclaim and Abatement
24
2.5.1 Distinction Between Set-off and
Counterclaim
25
2.5.2 Distinction Between Set-off and Abatement
27
2.5
ix
2.6
Provision of Set-off in Standard Form of Contract
33
2.6.1 PAM 2006
33
2.6.1.1 Condition to Set-off
34
2.6.1.2 Procedure of Set-off to
Adjudication and Arbitration
36
2.6.2 PWD 203A (Rev. 1/2010)
2.6.2.1 Condition to Deduct Money
3
37
38
2.6.3 CIDB 2000
39
2.7
Provision in the Limitation Act 1953
40
2.8
Set-off Within the Same Contract
40
2.9
Set-off Against Payment Certificate
42
2.10
Set-off Arising Under Different Contracts
Between the Same Parties
45
2.11
Conclusion
48
PROFILING METHODOLOGY
3.1
Introduction
49
3.2
Definition of Profile
49
3.3
The Importance of Profile
50
3.4
Data Collection
51
3.5
Data Analysis
51
3.6
Parameter of Profile of Construction Set-off Cases
52
3.6.1 Year of Cases
53
3.6.2 Types of Parties Involved
53
3.6.3 Types of Construction Project
53
3.6.4 Nature of Set-off
54
3.6.5 Amount of Money Involved
54
x
3.7
4
5
3.6.6 Court Judgment
54
Conclusion
55
THE PROFILE OF CONSTRUCTION SET-OFF
CASES
4.1
Introduction
56
4.2
Summary of Cases
57
4.3
Analysis the Year of Cases Involved in Set-off
68
4.4
Analysis the Types of Parties Involved in Set-off
73
4.5
Analysis the Types of Construction Project
77
4.6
Analysis the Nature of Set-off
81
4.7
Analysis the Amount of Money Involved in Setoff
85
4.8
Analysis the Court Judgment Involved in Set-off
89
4.9
Summary for the Analysis of the Cases of Set-off
92
4.10
Conclusion
98
CONCLUSION AND RECOMMENDATION
5.1
Introduction
99
5.2
Summary of Research Findings
99
5.3
Research Constraints
107
5.4
Suggestion for Further Research
108
5.5
Conclusion
108
REFERENCES
109
xi
LIST OF TABLES
TABLE NO.
TITLE
PAGE
2.1
Comparison of Set-off, Counterclaim and Abatement
32
4.1
Analysis of the Year of Cases
69
4.2
Analysis of the Types of Parties Involved in Set-off
73
4.3
Analysis of the Types of Construction Project
Involved in Set-off
77
4.4
Analysis of the Nature of Set-off
81
4.5
Analysis of the Amount of Money Involved in Setoff
85
4.6
Analysis of the Court Judgment in Set-off
89
4.7
Summary for the Analysis of the Cases of Set-off
92
5.1
Summary of Research Findings
100
xii
LIST OF FIGURES
FIGURE NO.
TITLE
PAGE
1.1
Research Methodology
10
4.1
Year of Cases Involved in Set-off
72
4.2
Types of Parties Involved in Set-off
76
4.3
Types of Construction Project Involved in Set-off
80
4.4
Nature of Set-off
84
4.5
Amount of Money Involved in Set-off
88
4.6
Court Judgment in Set-off
91
xiii
LIST OF ABBREVIATIONS
AC
Law Reports Appeal Cases
All ER
All England Law Reports
Bing NC
Bingham New Cases
BLR
Building Law Reports
Ch D
The Law reports, Chancery Division
CIDB
Construction Industry Development Board
DLR
Dominion Law Reports
Eq. Ca. Ab.
Equity Cases Abridged
EWCA
England and Wales Court of Appeal
EWHC
High Court of England and Wales Decisions
Ex D
Exchequer Division
Lloyd’s Rep
Lloyd’s List Reports
MLJ
Malayan Law Journal
PAM
Pertubuhan Arkitek Malaysia
PWD
Public Work Department
QBD
Queen’s Beach Division
SLR
Singapore Law Reports
TCC
Technical and Construction Court
UK
United Kingdom
WLR
Weekly Law Reports
xiv
LIST OF CASES
CASES
PAGE
Acsim (Southern) v Danish Contracting and Development Co. Ltd
[1989] 47 BLR 55 (CA)
22
Alliance (Malaya) Engineering Co. Sdn. Bhd. v San Development
Sdn. Bhd [1974] 2 MLJ 94
58, 106
Anglian Building Products Ltd v W & C French (Construction) Ltd
[1972] 16 BLR 1
45
Axel Johnson Petroleum AB v MG Mineral Group AG [1992] 1
WLR 270
18, 19
Bandar Raya Development Bhd. v Woon Hoe Kan & Sons Sdn. Bhd
[1972] 1 MLJ 75
58
Bim Kemi v Blackburn Chemicals Ltd [2001] EWCA CIV 457
45
British Anzani (Felixstowe) Ltd v International
Management (UK) Ltd [1979] 3 WLR 451
Marine
42
Business Computers Ltd v Anglo-African Leasing Ltd [1977] 1
WLR 578
41
Chip Yew Brick Works Sdn Bhd v Chang Heer Enterprise Sdn Bhd
[1988] 2 MLJ 447
42
Dataran Rentas Sdn Bhd v BMC Constructions Sdn Bhd [2008] 2
MLJ 856
42, 44, 106
Dawnay Ltd. v. FG Minter Ltd. and others [1971] 2 All ER 1389
2, 58, 61
xv
Dole Dried Fruit and Nut Co. v Trustin Kerwood Ltd [1990] 2
Lloyd’s Rep 309
21
Gilbert-Ash (Northern) Ltd v Modern Engineering (Bristol) Ltd
[1974] AC 689; [1973] 3 All ER 195
3, 30, 42, 44, 39
Government of Newfoundland v Newfoundland Railway Company
[1888] 13 App. Cas. 199; [1888] 14 AC 199
18, 40, 41
Hanak v Green [1958] 2 QB 9; [1958] 2 All ER 141
20, 22, 24, 25,
41, 46
Hock Huat Iron Foundry (suing as a firm) v Naga Tembaga Sdn.
Bhd [1999] 1 MLJ 65
63
Hua Khian Ceramic Tiles Supplies Pte. Ltd v Torie Construction
Pte Ltd [1992] 1 SLR 884
19
Jallcon (M) Sdn Bhd v Nikken Metal (M) Sdn Bhd (No. 2) [2001] 5
MLJ 716
25, 66
Jasa Keramat Sdn. Bhd. v Monatech (M) Sdn. Bhd [1999] 4 MLJ
217
64, 106
Jeffs v Wood [1723] 2 Eq Ca. Ab. 10
14
JKP Sdn. Bhd. v PPH Development(M) Sdn. Bhd. and another
appeal [2007] 6 MLJ 239
67
Kemayan Construction Sdn. Bhd. v Prestara Sdn. Bhd [1997] 5
MLJ 608
63
Koay Chiew Leong (t/a Leong & Co) v United Engineers (M) Sdn.
Bhd [1995] 5 MLJ 390
62, 106
L’ Grande Development Sdn. Bhd. v Bukit Cerakah Development
Sdn. Bhd [2007] 4 MLJ 518
67, 106
Lightweight Concrete Sdn. Bhd. v Nirwana Indah Sdn. Bhd [1999]
5 MLJ 351
64
Mahkota Technologies Sdn Bhd v BS Civil Engineering Sdn Bhd
[2000] 6 MLJ 505
43, 65, 106
Mellowes Archital v Bell Projects [1997] 87 BLR 26
Mondel v Steel [1841] 8 M & W 858; [1835-42] All ER Rep 511
Morley v Inglis [1837] 4 Bing NC 58
30
3, 29
19
xvi
Multiplex Constructions (UK) Ltd v Cleveland Bridge UK Ltd &
Dorman Long Engineering Ltd [2006] EWHC 1341 (TCC)
28
Pembenaan Leow Tuck Chui & Sons Sdn Bhd v Dr Leela’s Medical
Centre Sdn Bhd [1995] 2 MLJ 57
34, 43, 61, 106
Permodalan Plantation Sdn Bhd v Rachuta Sdn Bhd [1985] 1 MLJ
157
15, 20, 25
Perwik Sdn Bhd v Lee Yen Kee (M) Sdn. Bhd [1996] 1 MLJ 857
62
Re McMurtry & Co. [1924] 1 DLR 737
14
Ribaru Bina Sdn. Bhd. v Bakti Kausar Development Sdn. Bhd. &
Anor [2007] 2 MLJ 221
66
Roxburghe v Cox [1881] 17 Ch D 520;
41
Ryoden (M) Sdn. Bhd. v Sykt. Pembenaan Yeoh Tiong Lay Sdn. Bhd
[1992] 1 MLJ 33
60
Shanghai Hall Ltd v Town House Ltd [1967] 1 MLJ 223
26
Sim Chio Huat v Wong Ted Fui [1983] 1 MLJ 151
59
Stooke v Taylor [1880] 5 QBD 569
25
Syarikat Soo Brothers Construction v Gazfin Sdn. Bhd [1989] 1
MLJ 64
59
Sykt. Tan Kim Beng & Rakan-rakan v Pulai Jaya Sdn. Bhd [1992] 1
MLJ 42
60
Tansa Enterprise Sdn. Bhd. v Temenang Engineering Sdn. Bhd
[1994] 2 MLJ 353
61
Teknik Cekap Sdn. Bhd. v Villa Genting Development Sdn. Bhd
[2000] 6 MLJ 513
65
Token v Charlton [1973] 1 BLR 50
Woo Kam Seng v Vong Tak Kong [1968] 2 MLJ 244
Yong Mok Hin v United Malay States Sugar Industries Ltd [1966] 2
MLJ 286
Young v Kitchin [1878] 3 Ex. D. 127
4, 34
57
25, 57
18