By:
Bryan Lui (Co-Managing Partner) [bryanlui@luibhullar.com]
Harneshpal Karamjit Singh (Co-Managing Partner) [harnesh@luibhullar.com]
In a recent development, concerns have been raised regarding the Extension of Time (EOT) granted under Sections 35 and 38C of the COVID-19 Act 2020. A key issue highlighted in this legal matter is the authority vested in the Director-General, who purportedly lacks the power to sign letters granting EOTs under both the COVID Act and HDA, leading to a potential error and execution of law.
The debate further deepens as it is revealed that a letter signed by the Director-General approving the EOT without obtaining the consent of purchasers, denying them the right to be heard, and neglecting relevant considerations. Messrs Lui & Bhullar opines that such actions are not only irrational and unreasonable but also a breach of procedural fairness.
A similar situation arises with the EOT, granted under Section 35 of the COVID-19 Act 2020. The EOT, sanctioned through a letter and signed by the Director General, mirrors the aforementioned issues—lack of purchaser consent, absence of the right to be heard, and a failure to consider relevant factors.
The legal scrutiny intensifies with the EOT, granted according to Section 38C of the COVID-19 Act 2020. Here, challenges can be mounted on various grounds, including a potential breach of Section 38C itself.
Section 38C does not empower the Minister to entertain a developer's application after the expiration of the period to deliver vacant possession, especially when purchasers have already taken possession. This, too, is viewed as an error of law.
An example of an examination of the dates involved, further reveals complexities in the timeline. The Sale and Purchase Agreement (SPA) dating back to 02.08.2017 originally stipulated vacant possession on 02.08.2020. An extension of time issued on 15.03.2022, raises concerns over the Director-General's authority, echoing the earlier contention of an error of law.
As these legal challenges unfold, a yet-to-be-reported High Court decision has affirmed the contention of Messrs Lui & Bhullar and it remains to be seen how the concerned parties will navigate the intricacies of the Extension of Time granted under the COVID-19 Act 2020, and what implications this may have on the broader legal landscape.
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