26 Apr 2019
CT INDAH CONSTRUCTION SDN BHD (NO. SYARIKAT: 505419-A) BHL GEMILANG SDN BHD (NO. SYARIKAT: 484693-W)
- Citation
- W-02(C)(A)-2056-10/2017 (Mahkamah Rayuan)
- Court
- C
- Case number
- W-02(C)(A)-2056-10/2017 (Mahkamah Rayuan)
Section 30(3) of CIPAA imposes an independent mandatory statutory obligation on a principal to pay the adjudicated sum to the successful claimant in the absence of proof of payment by the contractor, and such payment does not, per se, constitute an unlawful undue preference under s293 of the Companies Act; the principal may thereafter recover the sum from the contractor under s30(4); accordingly the High Court was wrong to deny direct payment and to hold that such payment would be a preferential payment.