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On 15 May 2023, High Court Judge YA Tee Geok Hock decided the following pertaining to 30 homebuyer's claims for LAD in the case of Blue Green Network Sdn Bhd & 29 Others -v- Pilihan Megah Sdn Bhd pertaining to a project named Sky Condominium, Puchong:-
Prescribed period of 36 months under Schedule H
Causes of action for liquidated damages ('LAD') in relation to the delivery of parcels accrue on the date of the Purchaser's vacant possession, based on the Sale and Purchase Agreement and relevant court decisions.
The computation of liquidated damages is based on 36 months from the relevant start date.
For parcels, the LAD computation ends on the date of actual or deemed possession, whichever is earlier.
For common facilities, the LAD computation ends on the date of completion of the facilities.
The Purchasers entered into Sale and Purchase Agreements (SPAs) with the Developer, of the housing project called "Tropicana Metropark Phase 1C."
Before signing the SPAs, the Purchasers had to pay a booking fee/deposit to the appellant or the appellant's stakeholder solicitors. The SPAs were modified by the Developer, extending the delivery of vacant possession and completion of common facilities from the standard 36 months to 45 months.
The sessions court judge granted the Purchaser's application to dispose the case on the points of law and awarded them costs on October 21, 2022.
On 1 March 2023 the High Court upheld the Sessions Court's decision and dismissed the Developer's appeal with costs.
The High Court upheld the decision made by the Sessions Court regarding this legal issue. The Federal Court's ruling in the case of Ang Ming Lee & Ors v. Menteri Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan & Anor dan other appeals [2020] 1 CLJ 162; [2020] 1 MLJ 281 states that any modification or alteration of provisions in Schedule H (the statutory sale and purchase agreement) approved by the Controller of Housing under Regulation 11(3) of the Regulation is beyond the scope of authority granted by the Housing Development (Control and Licensing) Act 1966.
This ruling is also supported by the Federal Court's decision in the PJD Regency case, as well as the Court of Appeal's decisions in Vinesh Naidu v. Prema Bonanza Sdn Bhd [2023] 1 LNS 162 and UE E&C Sanjia (M) Sdn Bhd v. Lee Jeng Yuh & Anor [2021] 10 CLJ 271; [2021] 6 MLJ 864.
Lam Pheng Pheng & Ors v Euroland & Development Sdn Bhd
PJD Regency Sdn Bhd lwn Lee Kok Seng & Ors [2022] 1 LNS 2217
PJD Regency Sdn Bhd lwn Lee Kok Seng & Ors [2022] 1 LNS 2217
Ng Sook Foon & Ors v Marimo Land Sdn Bhd [2022] 1 LNS 1970
Several legal questions were presented to the High Court. The purchaser’s claim for liquidated damages (LAD) of about RM3.6 million was granted.
Chin Jye Yee v MRCB Seputeh Land Sdn Bhd (Dahulu dikenali sebagai Gapurna Land Sdn Bhd)
Cha Chee Pin v Seri Tiara Development Sdn Bhd
Cheong Yew leun and Ors v Keystone Land Developments Sdn Bhd
Cheong Yew Leun and Ors v Keystone Land Developments Sdn Bhd (Order 18)
Cheong Yew Leun and Ors v Keystone Land Developments Sdn Bhd (Order 14A)
Tan Yi Leng and Ors v Kepong Industrial Park Sdn Bhd
Soh Jien Min and Ors v PJD Landmarks Sdn Bhd (Sessions court - Order 18)
Soh Jien Min and Ors v PJD Landmarks Sdn Bhd (Sessions court - Order 14)
PJD Landmarks Sdn Bhd v Soh Jien Min and Ors is an appeal by the defendant/ developer from Soh Jien Min and Ors v PJD Landmarks Sdn Bhd (Sessions court - Order 18)
Cheng Fui Chin and Ors v PJD Landmarks Sdn Bhd (Order 18)
Cheng Fui Chin and Ors v PJD Landmarks Sdn Bhd (Order 14)
PJD Landmarks Sdn Bhd v Cheng Fui Chin and Ors is an appeal from Cheng Fui Chin and Ors v PJD Landmarks Sdn Bhd (Sessions Court - Order 18)
PJD Landmarks Sdn Bhd v Cheng Fui Chin and Ors is an appeal from Cheng Fui Chin and Ors v PJD Landmarks Sdn Bhd (Sessions Court - Order 14)
Lee Kok Seng and Ors v PJD Regency Sdn Bhd (Order 18)
Lee Kok Seng and Ors v PJD Regency Sdn Bhd (Order 14)
PJD Regency Sdn Bhd v Lee Kok Seng and Ors is an appeal from Lee Kok Seng and Ors v PJD Regency Sdn Bhd (Order 18)
In PJD Regency Sdn Bhd v Lee Kok Seng & Ors [2022] MLJU 2282 (“Lee Kok Seng”), the Court held as follows:-
1. That a claim for LAD that arises from the Federal Court decision in Ang Ming Lee & Ors v Menteri Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan & Anor Dan Other Appeals [2020] 1 MLJ 281 (“Ang Ming Lee”) can be initiated by a writ action;
2. That a claim for LAD that arises from the Federal Court decision in Ang Ming Lee does not require the joinder of parties that were not parties to the statutory contract of sale;
3. That the cause of action for LAD accrues only once vacant possession is delivered;
4. That as LAD is a statutory remedy, the principles of estoppel and Section 64 of the Contracts Act 1950 do not apply.
Accordingly, the Appellant’s Appeal against the dismissal of their Striking Out Application in the Sessions Court was dismissed.