Sor Kok Wah & 4 Ors v Draland Sdn Bhd

Sor Kok Wah & 4 Ors v Draland Sdn Bhd

Clause 2.04 of the sale agreements, which deferred the developer's obligation to apply for strata titles until completion of the entire complex, was inconsistent with the mandatory time requirements of the Strata Titles Act 1985 and therefore void; the defendant was required to take the steps to obtain provisional or separate strata titles (pursuant to s7(2), s10A and s20) after certification of fitness for occupation and is liable to compensate the plaintiffs for losses arising from its failure to apply, including refund of the surcharge for the relevant period and costs.

Citation
Sor Kok Wah & 4 Ors v Draland Sdn Bhd
Parties
Plaintiffs: Sor Kok Wah & 4 Ors; Defendant: Draland Sdn Bhd
Court
Malaysian court
Jurisdiction
Malaysia
Judgment Date
1998
Procedural Posture
Originating Summons No 24 134 1997 / Judgment (high Court, Melaka)
Outcome
Plaintiffs' claim allowed
Legal Topics
Strata Title Application Timing, Maintenance Charges and Surcharge, Contracting Out of Statute, Damages for Failure to Obtain Strata Title
Source Language
en
Land Law Strata Title Contract Law Strata Title Application Timing Maintenance Charges and Surcharge Contracting Out of Statute Damages for Failure to Obtain Strata Title

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 10 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Sor Kok Wah & 4 Ors

Plaintiffs

Draland Sdn Bhd

Defendant

Procedural Posture

Originating Summons No 24 134 1997 / Judgment (high Court, Melaka)

Legal Issues

  1. 1 Whether clause 2.04 of the sale agreements is void as an attempt to contract out of s8 of the Strata Titles Act 1985
  2. 2 Whether proprietor was required to apply for strata titles within the statutory timeframes (s8, s7(2), s10A, s20) despite land being under qualified title and caveats
  3. 3 Whether plaintiffs are entitled to damages/refund for defendant's failure to apply and maintain surcharge until strata titles issued

Ratio Decidendi

Clause 2.04 of the sale agreements, which deferred the developer's obligation to apply for strata titles until completion of the entire complex, was inconsistent with the mandatory time requirements of the Strata Titles Act 1985 and therefore void; the defendant was required to take the steps to obtain provisional or separate strata titles (pursuant to s7(2), s10A and s20) after certification of fitness for occupation and is liable to compensate the plaintiffs for losses arising from its failure to apply, including refund of the surcharge for the relevant period and costs.

Court Disposition

Plaintiffs' claim allowed

Orders

  • Clause 2.04 declared void and unenforceable
  • Defendant liable to compensate plaintiffs for damages arising from failure to apply for strata titles within the statutory time; refund of 30% surcharge collected for 1996-1997 with interest as claimed; no further surcharge to be imposed until strata titles are issued