Minister welcomes Federal Court decision on homebuyer claims tribunal
Utusan.com.my 15/6/2004

KUALA LUMPUR June 14 - Housing and Local Government Minister Datuk Seri Ong Ka Ting Monday welcomed the decision of the Federal Court to uphold the ruling by the Court of Appeal that the Tribunal for Homebuyer Claims has the jurisdiction to hear and determine cases involving sales and purchase agreements entered before Dec 1 2002.

He said the decision once and for all settled the issue on the jurisdiction of the tribunal.

"The decision pronounced by the Federal Court Monday has in itself created history for the housebuyers.

"As all this while, it is my wish and my ministry's intention to provide ample protection to the housebuyers' rights and to ensure that the hard-earned money of the housebuyers who most of them bought a house in their lifetime, not be shortchanged and badly treated by the developers," he said in a statement here.

He said the ministry is confident that the tribunal, with its recently-added strength, will go all out to effectively hear cases and make prompt decisions in the best interest of the public.

The tribunal was set up following an amendment to the Housing Development (Control and Licensing) Act 1966 with effect from December 2002.

Since the tribunal started hearing claims from housebuyers, the decision of the tribunal had been challenged by a few housing developers.

On Sept 4 last year, the High Court made the decision that the tribunal does not have the jurisdiction to hear cases involving sales and purchase agreement signed before the appointed date, that is before the tribunal was set up.

However, on Dec 18 last year, the decision of the High Court was overruled by the Court of Appeal Court, in favour of the tribunal.

Ong said the ministry from now on will take stern action to prosecute developers who defy the award made by the tribunal by not honouring it.

He said that prior to the Federal Court decision, the ministry has been advised not to prosecute the defaulting developers until the final decision is made by the highest court.

He said the ministry will not give anymore notices to defaulters before any action is taken against them.