Ministry to appeal ruling on S&Ps

06/09/2003 The Sun By Arion Yeow

Petaling Jaya: The government will appeal against the High Court decision that the Tribunal for Homebuyer Claims cannot hear cases involving sale and purchase agreements signed before Dec 1 last year.

Expressing surprise over the landmark decision, Housing and Local Government Minister Datuk Seri Ong Ka Ting said he has spoken to Attorney-General Tan Sri Abdul Gani Patail.

According to Ong, Abdul Gani said he will argue the case for the government before a higher court.

In a statement yesterday, Ong said the government will seek an early date for the hearing of the appeal.

He reminded developers that the moment they entered into an agreement with a housebuyer, they should honour that contractual obligation.

"They should not be compelled to perform their obligations only when brought to the tribunal or court."

Ong said he has instructed his ministry to look into "all possibilities" to protect the legitimate interests and rights of housebuyers.

"The amendments to Act 118 (the Housing Development (Control and Licensing) (Amendment) Act 2002 and the establishment of the tribunal was made to serve the interests of housebuyers in accordance with the law.

"The government will explore every avenue to ensure the actual purpose for the setting up of the tribunal is served.

The High Court ruling on Thursday on a test case involving two developers effectively put paid to 2,209 cases that had been filed with the tribunal, including 438 that had been settled up to July 3.

Decisions on those cases - in which awards amounting to nearly RM2.4 million were made to buyer - are now null and void as a result.

The Real Estate and Housing Developers Association welcomed the court decision because the criminal penalties for not complying with the tribunal's awards "affected the rights of developers".

Its president, Datuk Jeffrey Ng Tiong Lip, said those provisions rightly cannot be interpreted retrospectively.

However, he urged all housing developers affected by the decision and with ongoing tribunal cases to fulfill their contractual obligations under the sale and purchase agreements to house buyers.