Court of Appeal Rules That Retention Moneys Are Held In Trust

On the 12th July 2011 the Malaysian Court of Appeal upheld an earlier ruling of the High Court that retention moneys under a construction contract were indeed moneys held in trust and that the following the Employer entering into voluntary winding up, its creditors were not to benefit from the sums so retained which remained payable to the Contractor. Although the Employer appointed a liquidator prior to the expiration of the defects liability period the court held that the retention monies did not form part of the assets of the Employer as they are held in trust.   For a more detailed information please refer to the Case Law section of this site

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