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Developer sued for breach of contract
15/4/2005 NST

KUALA LUMPUR, Apr 14: One hundred and twenty- five individuals, who bought 211 units of hostel facilities in Bangi, today filed a suit in the High Court against the developer for breach of contract.

Developer Bidari Ehsan Sdn Bhd was given the exclusive right and licence to manage the property as part of a hostel for 10 years.

The plaintiffs now want the developer to settle all outstanding annual licence fees (rentals) and proceed with the agreement.

Alternatively, the plaintiffs want the developer to pay them damages if the agreement between them is to be revoked.

In their statement of claim, the plaintiffs said they were individual purchasers of the units, which were developed in phases.

In or around August 2000, following a sale and purchase agreement, the plaintiffs bought the property known as Sibertel at Taman Universiti Bangi in Selangor.

The units were priced at RM33,600 and above.

The developer's right to manage the property was to commence one month after vacant possession of the property was delivered to the purchasers.

The developer was to pay RM3,360 rental per year to each unit owner.

It commenced the payments but defaulted on Jan 1 in respect of all plaintiffs.

The plaintiffs claim they have suffered losses and want payment of the outstanding fees since January.

Alternatively, they want the developer to pay RM7,089,600, minus the fees already paid to them, if it wants to terminate the agreement.

The plaintiffs are also asking for damages for breach of trust, general and special damages, and other relief deemed fit by the court.

 

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