Introduction

[1] The primary issue that arose for consideration in this appeal was whether a debt due and owing by the main contractor of a mixed development project, one HAC Builders Sdn Bhd, the second defendant in the court below ('HAC Builders') to its sub-contractors, Qudotech Sdn Bhd, the 3rd plaintiff in the court below ('Qudotech') and Fei Wong Letrik Sdn Bhd, the 2nd plaintiff in the court below ('Fei Wong Letrik') was effectively set-off or settled by virtue of a 'contra-arrangement' whereby HAC Builders agreed to give Qudotech four units in the mixed development in return for the extinguishment or settlement of the debt.

[2] Pursuant to this 'contra-arrangement' a unit, namely Unit A-3-1B was allegedly 'given' to Qudotech in settlement of the sum of RM97,845.29. Qudotech in turn nominated Ching Miew Yoke, the 1st plaintiff in the court below ('the purchaser') as the beneficiary of Unit A-3-1B.

[3] Notwithstanding t