KUALA LUMPUR – The Federal Court today rejected claims by home buyers seeking damages for late property delivery, aiming to prevent purchasers from unjustly enriching themselves.
The case involves buyers who purchased homes in 2012, with contracts stipulating a 54-month delivery period for their high-rise properties.
However, the Housing Development (Control and Licensing) Regulations 1989 mandate a delivery time of 24 months for landed homes and 36 months for strata properties.
The Controller of Housing however granted developer Prema Bonanza Sdn Bhd an extension of time.
On November 26, 2019, the Federal Court ruled in the case of Ang Ming Lee & Anor v the Housing and Local Government Ministry that the minister could not empower the Controller of Housing to grant developers extensions for property delivery.
Based on this decision, the buyers argued that the extension granted to Prema Bonanza was invalid and sought damages for the delayed delivery.
However, the Federal Court ruled today ruled that the Ang Ming Lee decision only applies to sale and purchase agreements signed after November 26, 2019.
Consequently, buyers could not rely on the Ang Ming Lee’s judgment for their claims, as they were aware of the extension when they signed their contracts.
“One of the questions before the court today was whether extensions of time granted before the Ang Ming Lee case are valid or not,” said Prema Bonanza’s lawyer Lai Chee Hoe.
“The Federal Court ruled that the Ang Ming Lee judgment applies prospectively and will not affect extensions of time granted before the decision,” Lai said when contacted by Scoop.
The Federal Court’s decision today stemmed from three cases: Obata-Ambak Holdings Sdn Bhd vs Prema Bonanza Sdn Bhd, Prema Bonanza Sdn Bhd vs KN Vignesh Naidu, and Sri Damansara Sdn Bhd vs Housing Tribunal & Ors.
The hearing today was chaired by Tan Sri Abang Iskandar Abang Hashim, Datuk Seri Hasnah Mohammed Hashim, Datuk Zabariah Mohd Yusof, Datuk Harmindar Singh Dhaliwal, and Datuk Abdul Karim Abdul Jalil.
In addition to Prema Bonanza, the Federal Court also heard appeals for Sri Damansara Sdn Bhd which was sued by homeowners who had a delivery period of 42 months in their agreements.
Prema Bonanza is the developer of The Sentral Residences, a serviced residential tower in the vicinity of Kuala Lumpur Sentral, while Sri Damansara is the developer of the Damansara Foresta condominium near Kota Damansara. – July 26, 2024