Tri Pacific Engineering Sdn Bhd v KL Eco City Sdn Bhd

Appellant(s): Tri Pacific Engineering Sdn Bhd

Respondent(s): Kl Eco City Sdn Bhd

• YA Dato' Azizul Azmi Bin Adnan
• YA Datuk Dr Lim Hock Leng
• YA Dato' Nadzarin Bin Wok Nordin

• The plaintiff, a subcontractor, obtained an adjudication decision against the main contractor for an adjudicated sum.
• The plaintiff sought direct payment from the defendant, the principal, under section 30 of the Construction Industry Payment and Adjudication Act 2012 (CIPAA).
• The defendant made a partial direct payment but refused to pay the balance, citing insufficient funds due to a settlement agreement with the main contractor and the issuance of a final certificate.

• Whether there were monies due or payable from the defendant to the main contractor at the time of the plaintiff's direct payment demand, as required by section 30(5) of CIPAA.
• Whether the defendant could rely on a settlement agreement with the main contractor to extinguish the plaintiff's statutory right to direct payment.
• Whether the adjudicated amount for direct payment purposes under section 30 CIPAA includes interest and adjudication costs.

• The Court held that there were no monies due or payable from the defendant to the main contractor at the material time, as the retention sum had already been paid directly to the plaintiff, and subsequent amounts were subject to a settlement agreement and the final certificate.
• The Court declined to consider the issue of the settlement agreement as it had been abandoned in the High Court, citing the principle that new points are generally not allowed on appeal without exceptional circumstances.
• The appeal was dismissed, affirming the High Court's decision that the defendant was not liable to pay the balance adjudicated sum to the plaintiff.