SYMPHONY Hills Sdn Bhd, a subsidiary of UEM Sunrise Bhd, had yesterday (Oct 24) successfully defended against a claim by 48 purchasers for liquidated ascertained damages (LAD) against the listed property developer.
The claim was dismissed by the Shah Alam High Court after allowing an application for the entire proceedings to be decided based on four questions of law involving the validity of the extension of time, the justification for extension of time, estoppel and the mode of challenge.
In deciding the four questions of law, the High Court followed the principles established by the Federal Court in Obata-Ambak Holdings Sdn Bhd vs Prema Bonanza Sdn Bhd & Other Appeals.
The High Court held that the extension of time approved by the Controller of Housing before Ang Ming Lee is not ultra vires (beyond the powers) of the Housing Development (Control and Licensing) (Amendment) Act 2012.
For the record, Ang Ming Lee’s case in 2019 created havoc for property developers till the Obata-Ambak’s case this year provided ample relief for the developers’ fraternity. The Symphony Hills case is the first reported case applying the Obata-Ambak’s Federal Court decision.
The High Court judicial commissioner Elaine Yap Chin Gaik further found that in the absence of any court order in direct proceedings against the relevant parties on the invalidity of the extension of time granted by the Controller of Housing, the purchasers could not collaterally attack the Controller of Housing’s decision.
In the judgment cited by FocusM, the High Court’s decision reinforces the Federal Court’s decision but also sets a precedent on the limitation faced by purchasers when contesting the approval by the Controller of Housing to grant an extension of time.
The purchasers’ claim was dismissed with cost of RM42,000 to be paid jointly and severally by the 48 purchasers.
Nashitoh Kassim (with Aishah Mat Nor) of Messrs Nashitoh Kassim & Associates represented the 48 plaintiffs while Leonard Yeoh (with Caleb Sio and Chen Mei Yan) of Messrs Tay & Partners were the defendant’s counsel for Symphony Hills. – Oct 25, 2024
