Late delivery payment begins from booking fee collection, says court

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The courts must give effect to the intention of Parliament and not the intention of parties, says apex court. FMTNews Federal Court

Chang Kim Loong with lawyers Kok Kean Kang, Viola D Cruz, Andy K L Wong and Rex R S Wong in court last year. The purchasers have won a landmark judgment.

In a dispute brought before the court, the developers contended that the scheduled contracts must be read literally and in accordance with the intention of parties. The purchasers, from Malacca and Kuala Lumpur, had hauled the developers – PJD Regency Sdn Bhd, GJH Avenue Sdn Bhd and Sri Damansara Sdn Bhd before the housing tribunal over the payment of LAD.

The court said the Liquidated Ascertained Damages payable by housing developers to purchasers for late delivery of vacant possession in a housing project begins when the booking fee is collected and not when the S&P issigned between the developer and purchaser. The SPA was signed on March 21, 2013 and the contract stated that vacant possession must be delivered within 42 months or by September 2016. However, the developer only informed Wong to collect keys to his house on Jan 23, 2017.The matter was referred to the housing tribunal which ruled in favour of Wong. PJD’s appeal to the High Court and Court of Appeal were also dismissed.

 

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