INSUN DEVELOPMENT SDN V AZALI BAKAR

INSUN DEVELOPMENT SDN V AZALI BAKAR

Clause 18(2) of the Schedule E agreement specified only the terminus a quo for computing liquidated damages and did not fix a terminus ad quem; therefore the general rule applies and the purchaser's cause of action accrued on the day after the contractual completion deadline (12 December 1986). The purchaser's proceedings issued 31 July 1993 were more than seven years after accrual and are statute‑barred under Limitation Act 1953 s.6(1); appeal allowed.

Citation
INSUN DEVELOPMENT SDN V AZALI BAKAR
Parties
Vendor: Insun Development Sdn. Bhd.; Purchaser: Azali bin Bakar
Court
Malaysian court
Jurisdiction
Malaysia
Judgment Date
1996
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal
Outcome
Appeal allowed; judgment of court below set aside; judgment entered for the vendor; purchaser's claims dismissed; deposit refunded.
Legal Topics
Liquidated Damages, Accrual of Cause of Action, Statute of Limitations, Construction of Contract Clause, Housing Developers Regulations
Source Language
en
Civil Procedure Contract Property Housing Law Limitation Law Liquidated Damages Accrual of Cause of Action Statute of Limitations +2 more

Case Brief

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Parties

Insun Development Sdn. Bhd.

Vendor

Azali bin Bakar

Purchaser

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal

Legal Issues

  1. 1 When does purchaser's right to sue for agreed liquidated damages accrue?
  2. 2 Whether purchaser's claim was time-barred under s.6(1) Limitation Act 1953
  3. 3 Whether the Privy Council decision in Loh Wai Lian governs or is distinguishable

Ratio Decidendi

Clause 18(2) of the Schedule E agreement specified only the terminus a quo for computing liquidated damages and did not fix a terminus ad quem; therefore the general rule applies and the purchaser's cause of action accrued on the day after the contractual completion deadline (12 December 1986). The purchaser's proceedings issued 31 July 1993 were more than seven years after accrual and are statute‑barred under Limitation Act 1953 s.6(1); appeal allowed.

Court Disposition

Appeal allowed; judgment of court below set aside; judgment entered for the vendor; purchaser's claims dismissed; deposit refunded.

Orders

  • Appeal allowed with costs here and below.
  • Judgment of the Court below set aside.