Soon Chin Chye & 24 Lagi Sure Commerce Sdn Bhd

Soon Chin Chye & 24 Lagi Sure Commerce Sdn Bhd

The Court held that the Jazz Suites are housing accommodation within the meaning of the HDA 1966 notwithstanding commercial zoning; therefore SPA provisions inconsistent with the HDA Schedule H (including timing for delivery and computation of liquidated damages) are void and the correct date for computing liquidated damages is 36 months from the SPA signing with LAD payable until Certificate of Completion and Compliance dated 21 April 2017; clause 25 of the SPA is wide enough to preclude purchasers from indemnifying the developer for GST, and developer must refund GST collected; settlement agreements premised on illegal SPA provisions are void; developer's claims for service charges and...

Citation
P-04(NCvC)(W)-51-02/2022 (Mahkamah Rayuan)
Parties
Purchaser: SOON CHIN CHYE; Purchaser: LEE PENG SOON; Purchaser: NG THEAN GIN; Purchaser: HU SHU-FENG; Purchaser: TAN CHEAN PHEEN; Purchaser: TAN HONG SOON; Purchaser: TAN CHEN PHEEN; Purchaser: LIM HEE HOON; Purchaser: OOI KUAN YONG; Purchaser: LOH YEOK CHUAN; Purchaser: LOH BEE HOON; Purchaser: TOH GIAP CHYE; Purchaser: SHERINE FOO SIEW MAY; Purchaser: LOH SAW HOON; Purchaser: LOH YOK YEONG; Purchaser: EILLIAN LOONG; Purchaser: YEOH GUAN PENG; Purchaser: YEOH WAN CHEANG; Purchaser: LEE AI PIN; Purchaser: OOI YEOW PENG; Purchaser: OOI KIM BENG; Purchaser: THAM WOOI LOON; Purchaser: LEE HENG GEE; Purchaser: QUAH JUHUI; Purchaser: JOSEPH CHAI CHEONG KUI; Developer: SURE COMMERCE SDN BHD (816150-K)
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
22 April 2025
Case Number
P-04(NCvC)(W)-51-02/2022 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (court of Appeal) / Re Heard Appeal; Judgment Delivered
Outcome
Appeal P-04(NCVC)(W)-51-02/2022 (Purchasers) allowed; Appeal P-04(NCVC)(W)-63-02/2022 (Developer) dismissed; High Court decision set aside except insofar as it upheld developer's GST counterclaim; Sessions Court orders reinstated in other respects.
Legal Topics
Housing Development (hda) Applicability, Liquidated Damages for Late Delivery, Goods and Services Tax Indemnity and Refund, Validity of Settlement Agreements, Service Charges and Sinking Fund Obligations, Statutory Interpretation
Source Language
Malay/English
Contract Law Housing Development Law Tax Law (gst) Property Law Housing Development (hda) Applicability Liquidated Damages for Late Delivery Goods and Services Tax Indemnity and Refund Validity of Settlement Agreements +2 more

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Parties

SOON CHIN CHYE

Purchaser

LEE PENG SOON

Purchaser

NG THEAN GIN

Purchaser

HU SHU-FENG

Purchaser

TAN CHEAN PHEEN

Purchaser

TAN HONG SOON

Purchaser

TAN CHEN PHEEN

Purchaser

LIM HEE HOON

Purchaser

OOI KUAN YONG

Purchaser

LOH YEOK CHUAN

Purchaser

LOH BEE HOON

Purchaser

TOH GIAP CHYE

Purchaser

SHERINE FOO SIEW MAY

Purchaser

LOH SAW HOON

Purchaser

LOH YOK YEONG

Purchaser

EILLIAN LOONG

Purchaser

YEOH GUAN PENG

Purchaser

YEOH WAN CHEANG

Purchaser

LEE AI PIN

Purchaser

OOI YEOW PENG

Purchaser

OOI KIM BENG

Purchaser

THAM WOOI LOON

Purchaser

LEE HENG GEE

Purchaser

QUAH JUHUI

Purchaser

JOSEPH CHAI CHEONG KUI

Purchaser

SURE COMMERCE SDN BHD (816150-K)

Developer

Procedural Posture

Civil Appeal (court of Appeal) / Re Heard Appeal; Judgment Delivered

Legal Issues

  1. 1 Whether Jazz Suites are 'housing accommodation' subject to the Housing Development (Control and Licensing) Act 1966 (HDA)
  2. 2 Proper date for computation of liquidated damages for late delivery of vacant possession
  3. 3 Whether clause 25 of the SPA requires purchasers to indemnify developer for GST output tax and whether developer must refund GST

Ratio Decidendi

The Court held that the Jazz Suites are housing accommodation within the meaning of the HDA 1966 notwithstanding commercial zoning; therefore SPA provisions inconsistent with the HDA Schedule H (including timing for delivery and computation of liquidated damages) are void and the correct date for computing liquidated damages is 36 months from the SPA signing with LAD payable until Certificate of Completion and Compliance dated 21 April 2017; clause 25 of the SPA is wide enough to preclude purchasers from indemnifying the developer for GST, and developer must refund GST collected; settlement agreements premised on illegal SPA provisions are void; developer's claims for service charges and...

Court Disposition

Appeal P-04(NCVC)(W)-51-02/2022 (Purchasers) allowed; Appeal P-04(NCVC)(W)-63-02/2022 (Developer) dismissed; High Court decision set aside except insofar as it upheld developer's GST counterclaim; Sessions Court orders reinstated in other respects.

Orders

  • Reinstate Sessions Court judgment dated 14 January 2020 except as varied by this Court
  • Developer to refund GST collected from purchasers as ordered