Pembinaan Lagenda Unggul Sdn Bhd (Dalam Penggulungan Voluntari Pemiutang-Pemiutang) v Geohan Sdn Bhd & Another Appeal (W-02(IM)(NCC)-887-05/2016) (Court of Appeal)

For the Appellants: H Y Chong (Wilson Ho and Muhammad Iqram with him); Messrs. Azman Davidson & Co.

For the Respondents: Rohan Arasoo (Harold Tan Kok Leng with him); Messrs. Harold & Lam Partnership

The facts in both appeals are similar. Pembinaan Lagenda Unggul Sdn Bhd (the appellant in both appeals) has engaged the sub-contractors, namely Geohan Sdn Bhd and SK M&E Bersekutu Sdn Bhd (respondents in these appeals respectively) to carry out some works. The sub-contractors completed their works and a certificate of practical completion (CPC) has been issued by the architect. Both the sub-contracts provide a clause (which is under Clause 16.3) for deduction and release of the retention sum. Despite the lapse of defects liability period (DLP) and legal demands from the sub-contractors, the main contractor neglected or failed to release the retention sum. Thereafter, the sub-contractors received a notice of meeting of creditors.