ERA UNIVERSE DEVELOPMENT SDN BHD 1. ) LIM KENNY 2. ) LIM PEI LAI

ERA UNIVERSE DEVELOPMENT SDN BHD 1. ) LIM KENNY 2. ) LIM PEI LAI

The appeal is dismissed. The Sessions Court correctly (a) treated corporate management changes as irrelevant to the company's contractual liability; (b) calculated liquidated damages at 10% per annum on the purchase price stated in the SPA (RM786,623.00) per clause 24(2) Jadual G; and (c) applied only the 289 days temporary exemption (18 March–31 December 2020) under Act 829, rejecting KPKT letters as insufficient to extend statutory relief. The award of RM211,478.49 LAD and costs is upheld.

Citation
JA-12ANCvC-31-11/2024 (Mahkamah Tinggi)
Parties
Appellant/defendant in Lower Court: Era Universe Development Sdn Bhd; Respondent/plaintiff in Lower Court: Lim Kenny; Respondent/plaintiff in Lower Court: Lim Pei Lai
Court
High Court
Jurisdiction
Malaysia
Judgment Date
31 October 2025
Case Number
JA-12ANCvC-31-11/2024 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal From Sessions Court / Final Judgment on Appeal (decision Rendered)
Outcome
Appeal dismissed; Sessions Court decision dated 30 October 2024 affirmed
Legal Topics
Liquidated Damages, Housing Development Regulations (jadual G), COVID 19 Temporary Relief (act 829), Separate Legal Personality, Contractual Price Interpretation
Source Language
Malay/English
Contract Law Property Law Construction Law Statutory Interpretation Corporate Law Liquidated Damages Housing Development Regulations (jadual G) COVID 19 Temporary Relief (act 829) +2 more

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Parties

Era Universe Development Sdn Bhd

Appellant/defendant in Lower Court

Lim Kenny

Respondent/plaintiff in Lower Court

Lim Pei Lai

Respondent/plaintiff in Lower Court

Procedural Posture

Civil Appeal From Sessions Court / Final Judgment on Appeal (decision Rendered)

Legal Issues

  1. 1 Whether corporate management restructuring and mitigation measures reduce the developer's contractual liability for delay
  2. 2 Whether a commercial rebate alters the purchase price for the purpose of calculating liquidated damages under clause 24(2) Jadual G
  3. 3 Whether administrative letters from KPKT extend statutory relief under section 35 of Act 829 beyond the period published in the Gazette

Ratio Decidendi

The appeal is dismissed. The Sessions Court correctly (a) treated corporate management changes as irrelevant to the company's contractual liability; (b) calculated liquidated damages at 10% per annum on the purchase price stated in the SPA (RM786,623.00) per clause 24(2) Jadual G; and (c) applied only the 289 days temporary exemption (18 March–31 December 2020) under Act 829, rejecting KPKT letters as insufficient to extend statutory relief. The award of RM211,478.49 LAD and costs is upheld.

Court Disposition

Appeal dismissed; Sessions Court decision dated 30 October 2024 affirmed

Orders

  • Sessions Court judgment dated 30 October 2024 is confirmed
  • Appellant to pay liquidated damages of RM211,478.49 to the Respondents