THE Court of Appeal has dismissed an appeal by a group of 46 homebuyers who claimed for late delivery of vacant possession.
In a decision delivered yesterday (Nov 20), Justice Datuk Dr Shahnaz Sulaiman, Justice Datuk Nadzarin Wok Nordin and Justice Datuk Amarjeet Singh Serjit Singh affirmed the decision of the High Court who ruled in favour of the developer Symphony Hills Sdn Bhd, a subsidiary of UEM Sunrise Bhd.
The Court of Appeal held that the Shah Alam High Court rightly concluded that it is bound by the Federal Court’s landmark decision in Obata-Ambak Holdings Sdn Bhd vs Prema Bonanza Sdn Bhd and other appeals which held that the earlier Federal Court’s decision in Ang Ming Lee & Ors vs Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Anor And Other Appeals would only apply prospectively.
Recall that in October last year, the Shah Alam High Court judicial commissioner Elaine Yap Chin Gaik dismissed a claim by 48 purchasers for liquidated ascertained damages (LAD) against the listed property developer.
The claim was dismissed 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.
The case which began in 2021 revolved around allegations that the approval by the Controller of Housing in granting an extension of time to deliver vacant possession was invalid as the Federal Court in Ang Ming Lee found Regulation 11(3) of the Housing Development (Control and Licensing) Regulations 1989 to be ultra vires of the Housing Development (Control and Licensing) Act 1966.
The matter was initially set down for trial at the High Court. However, before the commencement of trial, the purchasers filed an application for the matter to be determined on questions of law.
The questions of law posed were based primarily on whether the decision of Obata-Ambak would apply to the current proceedings.
In delivering the decision, the appellant court held that only extensions of time given by the Controller of Housing after Nov 26, 2019 (the decision date of Ang Ming Lee) was unlawful as held by the Federal Court in Obata-Ambak.
As the extension of time given by the Controller of Housing in the current proceedings was before Nov 26, 2019, the extension of time was therefore lawful.
The homebuyers’ appeal was dismissed with cost of RM60,000 to be paid jointly and severally by the homebuyers to the developer.
Leonard Yeoh, Caleb Sio and Chen Mei Yan of Tay & Partners acted for the developer, Symphony Hills Sdn Bhd. Nashitoh Kassim, Nurin Ayuni Nazira Nazri and Armisya Nur Shafiqa Samsudin acted for the homebuyers. – Nov 21, 2025
Main image: Malay Mail
