Brief Facts

[1] In early 2005 the respondent in Rayuan Sivil No: A-02(NCVC)(W)-1174- 05-2012 (Rayuan 1174) was awarded a contract to carry out a road construction project in Tanjung Rambutan Perak (the project). The contract period was from 1 February 2005 to 15 August 2005. However, the project was completed by the respondent on 15 October 2005 when it was handed over to Jabatan Kerja Raya (JKR).

[2] On 1 February 2005 the respondent appointed M/s VN Sunrise Sdn Bhd (Sunrise) as the sub-contractor for the project.

[3] At the same time the respondent appointed the appellant as the Project Manager for the project. The scope of work of the appellant was to manage the accounts for the project and to make payments to sub-contractors for goods and materials supplied.

[4] In order to receive payments from JKR, the respondent opened a Current Bank account with Bank Bumiputra Commerce Bhd in Johor Bharu and to facilitate payments by the appellant from this account, the respondent pre-signed cheques and authorised the appellant to make the necessary payments from time to time.

[5] It was agreed between the appellant and the respondent that the appellant would be paid management