KHOO SOON LEE REALTY SDN BHD (COMPANY NO: 66384-P) 1. TRIBUNAL TUNTUTAN PEMBELI RUMAH Kementerian Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan 2. TAN CHEW LI [NRIC No.: 771119055400]

KHOO SOON LEE REALTY SDN BHD (COMPANY NO: 66384-P) 1. TRIBUNAL TUNTUTAN PEMBELI RUMAH Kementerian Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan 2. TAN CHEW LI [NRIC No.: 771119055400]

The court held that 'ready for connection' and Clauses 26/35 must be read to require that effective vacant possession entitles a purchaser to actually draw electricity and water in the unit; therefore late delivery runs from scheduled delivery date until utilities are connected to each parcel; liquidated damages for late delivery must be calculated using the price actually paid by the purchaser (discounted price) as the multiplicand; and purchasers who have validly entered settlements/consent judgments cannot later pursue Tribunal claims — such Tribunal decisions are quashed insofar as they relate to settled matters.

Citation
JA-25-12-04/2018 (Mahkamah Tinggi)
Parties
Applicant (developer): KHOO SOON LEE REALTY SDN BHD; Respondent (tribunal): TRIBUNAL TUNTUTAN PEMBELI RUMAH (Kementerian Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan); Respondent (homeowner): TAN CHEW LI
Court
High Court
Jurisdiction
Malaysia
Judgment Date
31 May 2020
Case Number
JA-25-12-04/2018 (Mahkamah Tinggi)
Procedural Posture
Application for Judicial Review / High Court Judgment (leave Granted; Determination on Merits)
Outcome
Application allowed in part; Tribunal decisions quashed in part and remitted for calculation in accordance with judgment; certain Tribunal awards quashed where prior settlements existed
Legal Topics
Vacant Possession, Liquidated Damages for Late Delivery, Interpretation of Sale and Purchase Agreement, Judicial Review of Tribunal Award, Effect of Consent/settlement, Statutory Definitions of Utility Connection
Source Language
Malay/English
Administrative Law Housing Law Contract Law Property Law Civil Procedure Vacant Possession Liquidated Damages for Late Delivery Interpretation of Sale and Purchase Agreement +3 more

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Parties

KHOO SOON LEE REALTY SDN BHD

Applicant (developer)

TRIBUNAL TUNTUTAN PEMBELI RUMAH (Kementerian Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan)

Respondent (tribunal)

TAN CHEW LI

Respondent (homeowner)

Procedural Posture

Application for Judicial Review / High Court Judgment (leave Granted; Determination on Merits)

Legal Issues

  1. 1 Whether Clause 26/35 of the SPA and the statutory definition of 'ready for connection' were wrongly construed by the Tribunal
  2. 2 Proper period for calculating late delivery and correct multiplicand/quantum for liquidated damages
  3. 3 Whether purchasers who entered prior settlements/consent judgments can still pursue Tribunal claims

Ratio Decidendi

The court held that 'ready for connection' and Clauses 26/35 must be read to require that effective vacant possession entitles a purchaser to actually draw electricity and water in the unit; therefore late delivery runs from scheduled delivery date until utilities are connected to each parcel; liquidated damages for late delivery must be calculated using the price actually paid by the purchaser (discounted price) as the multiplicand; and purchasers who have validly entered settlements/consent judgments cannot later pursue Tribunal claims — such Tribunal decisions are quashed insofar as they relate to settled matters.

Court Disposition

Application allowed in part; Tribunal decisions quashed in part and remitted for calculation in accordance with judgment; certain Tribunal awards quashed where prior settlements existed

Orders

  • Calculation of late delivery charges shall be based on the discounted price actually paid by the purchaser and not the pre-discount contracted amount
  • Late delivery shall be calculated from the scheduled delivery date of vacant possession (36 months from signing of SPA) until electricity and water supply are connected to individual parcels