Hock Seng Trading & Construction v Hongler Enterprise Sdn Bhd

Court of Appeal · · Commercial Law

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Hock Seng Trading & Construction v Hongler Enterprise Sdn Bhd
CourtCourt of Appeal
Judgment Date23 June 2025
Date Uploaded3 July 2025
Legal TopicsCommercial Law
Parties

Appellant(s): Hongler Enterprise Sdn Bhd

Respondent(s): CHAI HON SANG (berniaga sebagai HOCK SENG TRADING & CONSTRUCTION)

Bench
  • YA Datuk Hajah Azizah binti Haji Nawawi
  • YA Datuk Azimah binti Omar
  • YA Dato' Wan Ahmad Farid Bin Wan Salleh
Facts & Background
  • The respondent, a sub-contractor, obtained an adjudication decision (AD) under the Construction Industry Payment and Adjudication Act 2012 (CIPAA) against the appellant, a sole proprietorship, for unpaid works.
  • The appellant filed an application to set aside the AD, while the respondent filed an application to enforce it.
  • The High Court dismissed both applications, holding that the appellant lacked *locus standi* to sue in its business name and that the AD was invalid as the sole proprietorship had no legal capacity to be sued in its business name in the adjudication proceedings.
Issues for the Court
  • Whether a sole proprietorship has the *locus standi* to initiate an application to set aside an adjudication decision in its business name.
  • Whether an adjudication decision obtained against a sole proprietorship named only by its business name (without the proprietor's personal name) is valid and enforceable.
  • Whether the issue of *locus standi* and jurisdiction can be raised at any stage of the proceedings, even if parties participated in the adjudication.
Decision
  • The Court affirmed that a sole proprietorship must be sued in the proprietor's personal name, adding "trading as [business name]"; failure to do so renders the proceedings void *ab initio*.
  • Consequently, the adjudication decision against the appellant (named only by its business name) was null and void, and thus could neither be set aside nor enforced.
  • The Court held that jurisdictional issues, including *locus standi*, can be raised at any stage of proceedings, and participation or consent of parties cannot confer jurisdiction where none exists.
Link to JudgmentView Full Judgment

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