1. ) Tioh Chee Seng 2. ) Hew Fui Li 1. ) Talent Team Sdn Bhd 2. ) Tetuan Sidek Teoh Wong & Dennis

1. ) Tioh Chee Seng 2. ) Hew Fui Li 1. ) Talent Team Sdn Bhd 2. ) Tetuan Sidek Teoh Wong & Dennis

Appeal dismissed: RM5,000 was a stakeholder sum held by solicitors and not a booking fee so LAD is calculated from the date of the SPA (21.10.2015); the Housing Controller validly granted extensions of time which were not properly challengeable in this originating summons and, absent a prior judicial review declaring the EOT invalid, the EOTs stand; solicitors holding stakeholder sums cannot be ordered to release those funds for LAD because clause 30 of the SPA and s22E HDA 1966 prevent such release and would expose solicitors to fiduciary, professional and criminal liability.

Citation
WA-12BNCvC-34-03/2020 (Mahkamah Tinggi)
Parties
Appellant: TIOH CHEE SENG; Appellant: HEW FUI LI; 1st Respondent (developer): TALENT TEAM SDN. BHD.; 2nd Respondent (stakeholder Solicitors): TETUAN SIDEK TEOH WONG & DENNIS
Court
High Court
Jurisdiction
Malaysia
Judgment Date
25 October 2021
Case Number
WA-12BNCvC-34-03/2020 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal Against Sessions Court Decision (housing Development Dispute) / Rehearing and Judgment Under Order 55 Rule 2 of the Rules of Court 2012
Outcome
Appeal dismissed
Legal Topics
Liquidated Damages, Housing Development Act Compliance, Stakeholder Funds and Release, Extension of Time (eot) by Housing Controller, Judicial Review Vs Private Action, Interpretation of Sale and Purchase Agreement
Source Language
Malay/English
Contract Law Property Law Administrative Law Civil Procedure Trusts and Fiduciary Law Liquidated Damages Housing Development Act Compliance Stakeholder Funds and Release +3 more

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Parties

TIOH CHEE SENG

Appellant

HEW FUI LI

Appellant

TALENT TEAM SDN. BHD.

1st Respondent (developer)

TETUAN SIDEK TEOH WONG & DENNIS

2nd Respondent (stakeholder Solicitors)

Procedural Posture

Civil Appeal Against Sessions Court Decision (housing Development Dispute) / Rehearing and Judgment Under Order 55 Rule 2 of the Rules of Court 2012

Legal Issues

  1. 1 From which date are liquidated ascertained damages (LAD) calculated (booking fee payment date v. SPA date)?
  2. 2 Whether the RM5,000 paid was a booking fee or a stakeholder sum held by solicitors
  3. 3 Whether the Housing Controller's extensions of time were valid and challengeable in this originating summons

Ratio Decidendi

Appeal dismissed: RM5,000 was a stakeholder sum held by solicitors and not a booking fee so LAD is calculated from the date of the SPA (21.10.2015); the Housing Controller validly granted extensions of time which were not properly challengeable in this originating summons and, absent a prior judicial review declaring the EOT invalid, the EOTs stand; solicitors holding stakeholder sums cannot be ordered to release those funds for LAD because clause 30 of the SPA and s22E HDA 1966 prevent such release and would expose solicitors to fiduciary, professional and criminal liability.

Court Disposition

Appeal dismissed

Orders

  • Decision of Sessions Court upheld
  • Intitulement of the appeal amended to remove Appellants' proposed counterclaim