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Court awards 136 housebuyers RM1.6m
The Sun 30/4/2005

KUALA LUMPUR: The High Court here today awarded 136 housebuyers damages amounting to RM1.6 million as interim payment for failure by the developer to provide vacant possession within 36 months as stipulated in the contract.

Justice Datuk James Foong made the order in chambers.

Harwinder Kaur, counsel for the housebuyers, when met by reporters outside the court, said Foong granted an application for an interim payment for liquidated damages amounting to RM1,652,375 to 136 housebuyers at Desa Pakar, Jalan Sungai Besi, here.

However, Foong did not award the housebuyers payment for common facilities amounting to RM298,080.

On Nov 2002, the 136 housebuyers filed an application for an interim payment amounting to RM1.9 million, including the amount for the common facilities.

The buyers of low- and medium-cost houses worth between RM25,000 and RM200,000 each named housing developer Langkah Cergas Sdn Bhd as defendant in their application.

They claimed that Langkah Cergas had breached the housing and commercial sale and purchase agreements by failing to deliver vacant possession of the properties with water and electricity supply duly connected within 36 months of the date of executing the agreements that they signed in 1993.

Furthermore, they claimed that Langkah Cergas also failed to apply for the certificate of fitness (CF) pursuant to the requirements in the agreements.

Langkah Cergas, in its statements of defence, claimed that an interim payment should not be given because it had no money to pay the housebuyers.

It contended that the Foong should not hear the application for interim payment by the plaintiffs.
 

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