THOMAS IRUTHAYAM & ANOR V. LSSC DEVELOPMENT SDN BHD

THOMAS IRUTHAYAM & ANOR V. LSSC DEVELOPMENT SDN BHD

The defendant breached the S&P by failing to deliver vacant possession (water/electricity not connected and certificate of fitness not delivered) by the contractual date; cl.18(h) made time of the essence so s.56 Contracts Act rendered the contract voidable; cl.12(b) permitted plaintiffs to elect rescission; plaintiffs validly rescinded on 21 July 1998 and are entitled to repayment of monies paid plus incidental charges, interest and costs.

Citation
THOMAS IRUTHAYAM & ANOR V. LSSC DEVELOPMENT SDN BHD
Parties
Plaintiff: Thomas Iruthayam; Plaintiff: Anor; Defendant: LSSC Development Sdn Bhd
Court
Malaysian court
Jurisdiction
Malaysia
Procedural Posture
Originating Summons Sale and Purchase / Rescission / Judgment (high Court, Shah Alam)
Outcome
Judgment for plaintiffs; declaration of rescission and award for repayment, incidental charges, interest and costs.
Legal Topics
Rescission, Specific Performance, Liquidated Damages, Time of Essence, Vacant Possession, Contract Interpretation, Statutory Remedies
Source Language
en
Contract Law Property Law Equity Rescission Specific Performance Liquidated Damages Time of Essence Vacant Possession +2 more

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Parties

Thomas Iruthayam

Plaintiff

Anor

Plaintiff

LSSC Development Sdn Bhd

Defendant

Procedural Posture

Originating Summons Sale and Purchase / Rescission / Judgment (high Court, Shah Alam)

Legal Issues

  1. 1 Whether clause 12(b) of the S&P permitted the purchasers to rescind the contract
  2. 2 Whether the plaintiffs could rescind under statutory/common law/equity for fundamental breach (s.56 Contracts Act)
  3. 3 Whether time was of the essence and whether vacant possession was delivered by the contract date

Ratio Decidendi

The defendant breached the S&P by failing to deliver vacant possession (water/electricity not connected and certificate of fitness not delivered) by the contractual date; cl.18(h) made time of the essence so s.56 Contracts Act rendered the contract voidable; cl.12(b) permitted plaintiffs to elect rescission; plaintiffs validly rescinded on 21 July 1998 and are entitled to repayment of monies paid plus incidental charges, interest and costs.

Court Disposition

Judgment for plaintiffs; declaration of rescission and award for repayment, incidental charges, interest and costs.

Orders

  • Declaration that defendant breached the sale and purchase agreement dated 19 June 1996 and that plaintiffs rightfully rescinded the agreement on 21 July 1998
  • Defendant to refund plaintiffs all monies paid totalling RM306,000 and incidental charges RM2,980