Ramly Ali JCA

(delivering judgment of the court):

THE APPEAL

The present appeal before this court is against the decision of the learned High Court judge dated 22 April 2011 in allowing the respondents’ application for a declaration that the retention sum held by the appellant under the relevant contract is held on trust by the appellant in favour of the respondents and granting injunctive reliefs as prayed with costs of RM25,000. The appellant was the defendant and the respondents were the plaintiff’s at the court below.

FACTUAL BACKGROUND

The parties have agreed to the following facts which are stated in the statement of agreed facts:

(a)the respondents and the appellant company entered into a contract dated 22 August 2007 for a project known as the ‘Design and Build for Qimonda Global Module House Project at Senai, Johor’ (‘the Contract’);

(b)the first respondent was the design and build contractor of the said project to design, construct and maintain the Global Module House at Lot 1, Airport Logistic Park, Sultan Ismail International Airport, 81259 Johor (‘the works’). The first respondent was the contractor for their part of the works (‘CSA package’) under the contract while the sec