[1] This is an appeal by the appellant against the decision of the Court of Appeal in reversing the High Court decision given in favour of the appellant.

Background Facts

[2] The relevant background facts of the case may be summarised as follows:

(1) The appellant is the Joint Management Body ("JMB") of Paradesa Rustika Condominium ("the Condominium") established on 2 February 2008 pursuant to the provision of the Building and Common Property (Maintenance and Management) Act 2007 ("the Act"). The respondent was the developer of the condominium.

(2) Prior to the formation of the appellant, the respondent was responsible for the collection of monthly maintenance and sinking fund charges from the purchasers of the units of the condominium. Vacant possession of the units in the condominium was delivered to the purchasers on or about 28 January 2000.

(3) Shortly after the appellant was established the respondent transferred to the appellant a sum of RM151,206.99, being the sinking funds collected by it.

(4) The appellant discovered that there was a shortfall of RM505,722.36 ("the said sum") in the monies collected by the respondent towards the sinking funds. The appellant made a claim for the