KC CHAN BROTHERS
DEVELOPMENT SDN BHD V. TAN KON SENG & ORS
HIGH COURT MALAYA,
TEMERLOH
RAMLY ALI JC
[CIVIL APPEAL
NOS: 11-1-2000 TO 11-26-2000]
7 SEPTEMBER 2001
CIVIL PROCEDURE: Appeal
- Jurisdiction to entertain - Power of High Court to hear appeals from subordinate
courts - Question of law - Whether substantially raised in notice of appeal
or memorandum of appeal - Courts of Judicature Act 1964, ss. 27, 28
CONTRACT: Building contract - Breach - Defects - No notice as
per sale and purchase agreement given to developer to repair defects - Whether
purchasers may still sue developer for breach of contract - Whether purchasers
estopped from bringing claim - Protection of house buyers - Housing Developers
(Control & Licensing) Regulations 1982
CONTRACT: Building contract - Breach - Defects - Certificate of
fitness for occupation issued by local authority - Whether purchasers precluded
from suing developer for breach of contract - Whether specifications as
per sale and purchase agreement and building plans met
CONTRACT: Building contract - Sale and purchase agreement - Approved
building plans - Whether must be annexed to agreement - Whether a mandatory
requirement - Whether may be deemed to have been annexed to agreement -
Whether building plans part and parcel of agreement - Rights and liabilities
of purchaser and developer - Housing Developers (Control & Licensing) Regulations
1982, reg. 12
CONTRACT: Building contract - Breach - Defects
- Discovered after 12-month liability period - Whether purchaser may still
sue developer for breach of contract under common law
Ramly Ali JC:
These are 26 appeals filed by the same appellant/defendant against 26
decisions of the learned magistrate Temerloh made on 29 January 2000 in
favour of 26 different respondents/plaintiffs which arose from 26 separate
civil suits. The appellant/defendant had filed 26 Appeal Notices on 10 February
2000 and later followed by 26 Memorandum of Appeal in respect of each decision.
Factual Background
All the respondents/plaintiffs were house buyers for low-cost houses
built by the appellant/defendant at Taman Seraya, Triang, Pahang Darul Makmur.
For that purpose, all the respondents/plaintiffs had entered into their
respective agreements with the appellant/defendant. Out of the 26 respondents/plaintiffs,
13 of them were buyers for single-storey low-cost houses while the other
13, were buyers for double-storey low-cost houses. All the respondents/plaintiffs
filed their claims separately against the appellant/defendant in the Magistrate
Court Temerloh, claiming for compensation on the ground that their houses
were not built in accordance with the specifications provided in the approved
plans, which were part of the agreements. They claimed that the appellant/defendant
had breached the agreements between them.
For the single-storey houses,
the approved plan provides for the followings:
(a) the height of the house
shall be 10 ft. from floor to ceiling;
(b) asbestos ceiling - to be
installed;
(c) water PCC Vent - 2 layers;
(d) Roof rafters shall be from
hardwood - size 2"x4";
(e) "hardcore" flooring;
(f) septic tank wall - 9 inches
thick.
On delivery of the said houses,
the respondents/plaintiffs found the followings:
(a) the height of the house,
from floor to ceiling was only 9 feet;
(b) no asbestos ceiling installed;
(c) water PCC Vent - only 1
layer;
(d) roof rafters - were of
various sizes and not from hardwood;
(e) no "hardcore" flooring;
(f) septic tank wall - only
4 3/4 inches thick.
For the double-storey houses, the approved plan provides for the followings:
(a) the height of the house
shall be 20 ft. from floor to ceiling;
(b) asbestos ceiling to be
installed;
(c) septic tank wall - 9 inches
thick.
On delivery, the respondents/plaintiffs found the followings:
(a) the height of the house
from floor to ceiling was only 18 ft.;
(b) no asbestos ceiling installed;
(c) septic tank wall - only
4 3/4 inches thick.
The appellant/defendant disputed the claim. The first case went on for
full trial where the respondent/plaintiff (in that case) has called 16 witnesses.
At the end of the respondents/plaintiff's case (in that case) both counsels
for the respondents/plaintiffs and counsels for the appellant/defendant
agreed that the facts and evidence adduced in the first case be also applicable
to the other 25 cases. Along that line, the defence who has called three
witnesses in the first case, was also to be applicable to all the other
25 cases as agreed by the parties.
At the end of the trial, the learned magistrate decided infavour of all
the respondents/plaintiffs and found that the appellant/defendant was in
breach of the respective agreements. In respect of the single-storey houses,
the respective respondents/plaintiffs were awarded a sum of RM8,400 as compensation
together with costs and interests (for each of them). While in respect of
the double-storey houses, each of the respective respondents/plaintiffs
were awarded a sum of RM4,5000 as compensation together with costs and interests.
The appellant/defendant, not being satisfied with all the 26 decisions,
appealed to this court against all the 26 decisions separately and thus
had filed 26 notices of appeal.
At the hearing of this appeal, both parties agreed to submit their written
submissions which would be applicable for all the 26 appeals, as all the
appeals involved the same set of facts and issues.
Whether The Said Decisions Are Appellable - Section 28(1), Courts
Of Judicature Act 1964
It is not disputed that each and everyone of the 26 decisions involved
award of less than RM10,000.
The amount in dispute or the value of the subject matter is less than
RM10,000.
The appellate civil jurisdiction of the High Court in respect of appeals
from subordinate courts is governed by s. 27and 28 of the Courts of Judicature
Act 1964. Section 27 of the Act provides:
27. The appellate jurisdiction of the High Court shall consist of the
hearing of appeals from subordinate courts as hereinafter provided.
Section 28(1) of the same Act provides:
28(1). Subject to any other written law, no appeal shall lie to High
Court from a decision of a subordinate court in any civil cause or matter
where the amount in dispute or the value of the subject-matter is ten
thousand ringgit or less except on a question of law.
For the purpose of s. 28(1). The amount in dispute or value of the subject
matter shall not include interests and costs. It only refers to the main
award. This finding is supported by the decision of Penang High Court in
Kannaya & Anor v. Teh Swee Eng[1994] 3 CLJ 54, where it was held
that:
The value of the subject matter referred to in s. 28(1) of the Actdoes
not include interest and costs. To interprete otherwise would be to place
on unnecessary burden on Plaintiff who would have to decide in the first
instance in which court to institute proceedings and further to guess
as to when his case would be disposed of and its outcome. It cannot have
been the intention of the legislature to have enacted this provision to
invite the Plaintiff to first indulge in a guesing game as to the ultimate
outcome of his action for the purpose of deciding in which court to institute
proceedings.
Thus, based on the above finding, it is clear that the amount in dispute
or the value of the subject matter in all the 26 appeals before this court
is below RM10,000. It is also clear that by virtue of ss. 27and 28(1) of
the Courts of Judicature Act 1964, the High Court has no jurisdiction to
hear these appeals except on a question of law. This is a question of jurisdiction
which must be complied with strictly. It goes to the very core of the court's
power in dealing with the appeal. Non-compliance with the provisions is
fatal and would nullify the appeal. It is not a mere irregularity which
can be cured by any other existing rules. It is a vital question to be determined
and decided by the court at the beginning of the proceeding whether or not
the respondent or any other party has raised it. The fact that the respondent
does not raise the issue at the beginning of the proceeding does not mean
that the court has the jurisdiction to hear the appeal even though the conditions
set under s. 28(1) of the Actare not fulfilled.
That being the case, it is necessary at this stage for this court to
be satisfied that the appeal is only on a question of law - ie, it involves
issue on question of law raised by the appellant/defendant to be determined
and decided by this court. It only covers issues on questions of law alone,
nothing else.
Issues involving question of fact or that relate to the application of
the law to the facts are clearly outside the jurisdiction of this court.
(See Mohamad Safuan Wasidin & Anor v. Mohd Ridhuan Ahmad (an infant)[1994]
1 LNS 186; [1994] 2 MLJ 187; and Tiang Kwong Ee v. Ing Kai Hong (S) Sdn
Bhd[2000] 1 LNS 227; [2000] 5 MLJ 756.)
For that purpose, the court has to scrutinise the notice of appeal as
well as the memorandum of appeal to see whether any question of law has
been raised by the appellant. There must be same form of indication (ie,
general indication) in the notice of appeal as well as the memorandum of
appeal that a question of law has been raised. It need only be in general
and need not be specific. In Sulaiman Mohamad v. Malayan Banking Bhd[1991]
1 LNS 39; [1992] 2 MLJ 116, Lamin J (as he then was) held:
I am of the view that in the case of an appellant intending to appeal
on a question of law, the notice of appeal in Form 140 must state at least
in general form the question or questions of law that he wishes to appeal
on.
In another case, Mohamad Safuan bin Wasidin (supra), Abdul Malik
Ishak JC (as he then was) has also ruled:
In my judgment, in the case of an appellant intending to appeal from
the decision of the subordinate court where the quantum is less than RM10,000.00,
the notice of appeal in Form 140 must state generally the question or
questions of law that he wishes to appeal on. Any failure to conform to
this basic statutory requirement would strike at the very core of the
appeal and, consequently, would nullity the appeal. For the reasons adumbrated
above, I dismissed the appeal with costs.
The same ruling was also made by Tee Ah Sing J in Ting Kwong Eee v.
Ing Kai Hong (S) Sdn. Bhd. (supra). In that case he concluded:
The failure to state in the notice of appeal in Form 140 the question
or questions of law involved was fatal and would nullity the appeal.
In that case, the judge dismissed the appeal with costs on the ground
that the appellant's notice of appeal did not state generally the question
or questions of law that he wishes to appeal on.
In what format then, the question of law need to be stated in the notice
of appeal? All the above authorities have stated that the question of law
must be stated, at least in general form in the notice of appeal, but none
has touched on the format of the statement. Form 140 itself does not help
in this matter. The counsel for the respondents/plaintiffs contended the
question of law must be formulated in the form of "question" to be answered
by the court by using the opening word "whether ...". He further contended
that the questions of law should not be in the form of a statement which
says that "The learned magistrate has erred in law ..." or "The learned
magistrate did not take into consideration issues and question of law ...".
Since there are no specific provisions or guidelines as to how a question
of law need to be stated in the notice of appeal, then the court has to
peruse the notice of appeal as well as the memorandum of appeal in detail
in order to be satisfied that in substance a question of law alone has been
raised. How and in what format the question was raised or stated is not
that important. The substance is what matters. In this regard, I am in full
agreement with Selventhiranathan JC (as he then was) in Kanaya's
case (supra)where at p. 513 he said:
I also found that the second ground of objection to the appeal by learned
counsel for the respondent has merit. I have perused the memorandum of
appeal in detail and compared it with the grounds of judgment of the learned
Magistrate. Having done so, I am satisfied that all the grounds of appeal
in the memorandum at best relate to the application of the law to the
facts and do not involve any question of law alone for decision. Labelling
the grounds of appeal as involving questions of law does not metamorphose
what are essentially question of fact into question of law. The substance
is what matter, not the label.
In the present case, after going through the notices of appeal as well
as the memorandums of appeal in detail, I am satisfied that, in substance,
there are questions of law raised by the appellant/defendant for court's
decision. The issues are as follows:
(a) whether the respondents/plaintiffs must have complied with the
provisions of cl. 23 of the sale and purchase agreement first before initiating
their claims in court;
(b) whether the magistrate can award compensation exceeding the maximum
amount specified in the statement of claim;
(c) whether, based on the interpretation of reg. 11(1) of the Housing
Developers (Control and Licensing) Regulations 1982, a copy of the approved
building plan must be attached/annexed to the sale and purchase agreement;
and
(d) whether, upon issuance of the Certificate of Fitness for Occupation
(CFO), the respondents/plaintiffs are entitled to claim compensation from
the appellant/defendant for non-compliance with the specifications or
any other defect to the house.
The appellant/defendant has listed 12 issues in the notice of appeal
and 21 issues in the memorandum of appeal. Except for the four issues which
I have listed above that involved questions of law alone, all the other
issues raised by the appellant/defendant do not involve any question of
law alone for decision. At best, those issues relate to the application
of the law to the facts on the case. To my mind all those issues involve
question's of fact which were decided by the learned magistrate after having
heard all the witnesses. Whether to accept or reject their evidence, is
a matter clearly within his province as long as he had valid reasons to
do so. So, by vitue of s. 27and 28(1) of the Courts of Judicature Act 1964,
this court has no jurisdiction to entertain and to consider those issues.
For the purpose of these appeals, I shall only deal with the four issues
which I have cited above.
First Issue: Whether The Respondents/Plaintiffs Must Have Complied
With The Provisions Of Clause 23 Of The Sale And Purchase Agreement First
Before Initiating Their Claims In Court.
Clause 23 deals with defect liability period. In full, cl. 23 provides:
23. Any defects shrinkage or other faults in the said Building which
shall become apparent within a period of twelve (12) calendar months after
the date of handing over of vacant possession, with connection of water
and electricity supply to the said Building, to the Purchaser and which
are due to defective workmanship or materials or the said Building not
having been constructed in accordance with the plans and description as
specified in the Second and Fourth Schedule as approved or amended by
the Appropriate Authority, shall be repaired and made good by the Vendor
at its own cost and expenses within thirty (30) days of its having received
written notice thereof from the Purchaser and if the said defects, shrinkage
or other faults in the said Building have not been made good by the Vendor,
the Purchaser shall be entitled to recover from the Vendor the cost of
repairing and making good the same and the Purchaser may deduct such costs
from any sum which has been held by the Vendor's solicitor as stakeholder
for the Vendor:
PROVIDED THAT the Purchaser shall, at any time after expiry of the
said period of thirty (30) days, notify the Vendor of the cost of repairing
and making good the said defects, shrinkage or other faults before the
commencement of the works and shall give the Vendor an opportunity to
carry out the works himself within fourteen (14) days from the date
the Purchaser has notified the Vendor of his intention to carry out
the said works.
Ground (c) of the Notice of Appeal states that:
Keputusan Tuan Majistret tidak mengambil kira isu tentang kegagalan
Plaintif/Responden atas Fasal 23 Peijanjian dan soal undang-undang samada
Plaintif berhak menuntut gantirugi tanpa mematuhi Fasal 23 tersebut.
I have studied the grounds of decision by the learned magistrate (at
pp. 508-535 of the Appeal Records) and fully satisfied that the learned
magistrate has appropriately considered the issue relating to cl. 23 and
has ruled that the respondents/plaintiffs need not issue the said notice
under the clause, before taking their actions to court. The appellant/defendant
also argued that all the respondents/plaintiffs have failed to give any
notice to the appellant/defendant under cl. 23, thus they are estopped from
taking any action against the appellant/defendant in court. With respect
I cannot agree with this argument.
All the relevant sale and purchase agreements in these appeals were signed
between the respondents/plaintiffs and the appellant/defendant in 1990.
These agreements were governed by the provisions of the Housing Developers
(Control and Licensing) Act 1966 and the regulations made thereunder. At
that time (1990), the relevant regulations were the Housing Developers (Control
and Licensing) Regulations 1982 (the 1989 Regulations only come into force
after 1990). Regulation 12(1) of 1982 Regulations provides that every contract
of sale for the sale and purchase of a housing accomodation together with
the subdivisional portion of land appurtenant there to shall be in the form
prescribed in Schedule E. Regulation 12(2) further provides that no amendment
to any such contract of sale shall be made except on the ground of hardship
or necessity and with the prior approval of the Controller. In other words,
all provisions in the sale and purchase agreement are actually statutory
requirements which must strictly be complied with cl. 23, particularly is
meant to be as an additional protection for house buyers, without effecting
or limiting their rights under the common law. This finding was clearly
confirmed by the Privy Council in City Investment Sdn Bhd v. Koperasi
Serbaguna Cuepacs Tanggungan Bhd[1987] 1 LNS 62; [1988] 1 MLJ 69 where
Lord Templeman has expressed (at p. 72):
But the Act of 1966 and the Rules were designed to improve and supplement
common law remedies and do not expressly or by implication deprive a litigant
of a contractual remedy which is not dealt with under the Rules.
The same cl. 23, has been dealt with by Peh Swee Chin FCJ in Teh Khem
On v. Yeoh & WU Development Sdn Bhd[1996] 2 CLJ 11055 where he has said:
I share the view espoused by Lord Denning in Hancock & Ors. v. BW
Brazier Ltd. [1966] 2 All ER 901; [1966] 1 WLR 1317, to the effect
that such clause similar to cl. 23 in our instant appeal about making
good structural defects discovered within 6 months, would not take away
the right to sue in respect of such defects which were not discoverable
within such six months, and that further in regard those defects discovered
within the six months, the provision of an express remedy of making good
the same defects will not ipso factotake away the rights of any
purchaser which normally follow at common law in the case of a breach
of contract. It is pertinent to mention that our cl. 23 provides for 12
months instead of six months. The same principle would apply. Thus the
said line of defence also fails.
On those authorities, I am of the view that the failure on part of the
respondents/plaintiffs as house-buyers to issue any notice under cl. 23
of the sale and purchase agreements did not preclude them from initiating
their civil claim under the common law for breach of contract against the
appellant/defendant in court. Consequently, the question of estoppel as
raised by the appellant/defendant does not arise.
Second Issue: Whether The Magistrate Can Award Compensation Exceeding
The Maximum Amount Specified In The Statement Of Claim
Originally, all the respondents/plaintiffs had limited their claim to
not more than RM5,000 as stated in their respective statements of claim.
Thus on that ground, the appellant/defendant contended that the magistrate
cannot award compensation exceeding the amount. The appellant/defendant
further submitted that the magistrate has erred in law when he awarded a
sum of RM8,460 as compensation to each of the 13 respondents/plaintiffs
who are house buyers in respect of single-storey houses. I have scrutinised
the notes of evidence as well as the grounds of decisions of the learned
magistrate and the pleadings, and I found out that eventhough intially all
the respondents/plaintiffs have limited their claim to not more than RM5,000
each, however, in para. 5 of the amended statements of defence, the appellant/defendant
has stated that the respondents/plaintiffs have no right to limit their
claim as specified in para. 8 of their statements of claim. On that ground,
the counsel for the respondents/plaintiffs, at the Magistrate Court stage,
admitted and agreed that the respondents/plaintiffs have no right to limit
the amount of their compensation and submitted that the court then should
be at a liberty to consider the amount of compensation based on the civil
jurisdiction of a Magistrate Court to make an award of up to RM25,000, if
damages are proven. In the premise, the limit initially stated by the respondents/plaintiffs
in para. 8 of their respective statements of claim, has been abandoned and
of no effect. Thus, the learned magistrate, after being satisfied that damages
have been proven, was entitled to make an award of up to RM25,000. Therefore,
the allegation that the learned magistrate has given awards of compensation
exceeded the amount specified in the statements of claim should not arise
at all.
Third Issue: Whether, Based On The Interpretation Of Regulation 11(1)
Of The Housing Developers (Control and Licensing) Regulations 1982, A Copy
Of The Approved Building Plant Must Be Annexed To The Sale And Purchase
Agreement
In this issue, the appellant/defendant cited reg. 11(1) of the Housing
Developers (Control and Licensing) Regulations 1989 as the basis of the
argument. In actual fact, the 1989 Regulations only came into force after
1990 ie, after all the relevant sale and purchase agreements were duly signed
by all the parties. Thus the 1989 Regulations were not applicable to those
sale and purchase agreements. The relevant Regulations that were applicable
at the time when those sale and purchase agreements were signed, were the
1982 Regulations, ie, the Housing Developers (Control and Licensing) Regulations
1982. However the provisions of reg. 11(1) of the 1989 Regulations which
was cited by the appellant/defendant, was in effect, the same with reg.
12(1) of the 1982 Regulations; and the form of the sale and purchase agreement
as prescribed in Schedule G in the 1989 Regulations is the same with the
form of the sale and purchase agreement as prescribed in Schedule E in the
1982 Regulations.
By virtue of reg. 12(1) of the 1982 Regulations, every contract of sale
for the sale and purchase of a housing accommodation shall be in the form
prescribed in Schedule E. Thus the sale and purchase agreements are not
merely private contract between the developer and the house buyers, but
are contracts in statutory form, containing statutory requirements which
must be fully and strictly complied with; and as provided under reg. 12(2),
no amendment to any such contract of sale shall be made except on the ground
of hardship or necessity and with prior approval in writing of the Controller.
Regulation 14 of the 1982 Regulations further provides that any person who
contravenes any of the provisions of the Regulations shall be guilty of
an offence and shall be liable on conviction to a fine not exceeding RM5,000
or to a term of imprisonment not exceeding three years or both. In the present
case, there is no evidence to show that the Controller has given his written
prior approval to amend the form of the sale and purchase agreement as prescribed
in Schedule E. Thus, the original Schedule E is applicable. One of the recitals
to the said Schedule E states:
AND WHEREAS the Vendor has obtained the approval of the building plans
(hereinafter referred to as "the Building Plan") from the Appropriate
Authority, a copy of which is annexed as the Second Schedule;.
From this recital, it is clear that the approved building plan must be
attached or annexed to the sale and purchase agreement and forms part of
the agreement as Second Schedule. It is a mandatory requirement. RK Nathan
J in dealing with reg. 11(1) of the 1989 Regulations (which in effect is
the same with reg. 12(1) of the 1982 Regulations) in Chua Eng Hong &
Anor v. Palm Springs Development Sdn Bhd[2001] 6 CLJ 298has made the
same ruling ie, that the sale and purchase agreement was in the statutory
form and must be compiled with and cannot be waived or modified except with
the approval in writing from the Controller.
Since the sale and purchase agreement was in the statutory form and by
law, the approved building plan need to be annexed to the sale and purchase
agreement, therefore the said approved building plan must be deemed to have
been annexed and incorporated into the sale and purchase agreement although
in actual fact the plan was not annexed to the sale and purchase agreement
at all. Thus the provisions and specifications contained in the approved
building plan must be deemed to form part of the agreement and bind the
parties concerned.
Hence, the maxim "equity treats as done that which ought to have been
done" must apply to the present case. This was supported by Shanker J in
Tan Yang Long & Anor v. Newacres Sdn Bhd[1992] 3 CLJ (Rep) 666; [1992]
1 CLJ 211 when he said:
There was an immediate legal duty upon the part of Metroplex to reassign
their rights under the agreement which they failed to do. Equity in this
respect must regard that as done which ought to have been done.
In the present case, there was no evidence to show that the approved
building plan, which was prepared by the appellant/defendant's Architect,
has been annexed to the sale and purchase agreements. The appellant/defendant
may have committed an offence under reg. 14 of the 1982 Regulations. Thus,
the appellant/defendant should not be allowed to take advantage of his own
wrong doing. In any event it is the law that no man can take advantage of
his own wrong doing: "nullus commodum capere potest defendant injuria
sua propria"(see Hock Hua Bank (Sabah) Bhd v. Lam Tat Ming & Ors[1995]
1 LNS 80; [1995] 4 MLJ 328).
Fourth Issue: Whether, Upon Issuance Of The Certificate Of Fitness
For Occupation (CFO), The Respondents/Plaintiffs As House-buyers, Are Entitled
To Claim Compensation From The Appellant/Defendant For Non-compliance With
The Specifications Or Any Defect To The Houses
The appellant/defendant argued that since the CFO to those houses were
issued by the relevant authority, certifying that the houses were fit for
occupation, the respondents/plaintiffs are not entitled to claim that the
houses were defective for non-compliance with the specifications, and also
not entitled to claim compensation from the appellant/defendant. However,
the appellant/defendant did not cite any authorities to support this argument.
With respect, I cannot agree with this argument. I am of the view that
the CFO, which in the present case, was issued by the relevant authority
on 30 April 1991 (according to PW4), is to certify that the house in question
is deemed fit for occupation. It is issued upon completion of the house
by the developer and after the relevant authority is satisfied that the
relevant provisions of the Uniform Building By-Laws 1984 (GN5178/85) (UBBL)
have been complied with. The UBBL sets the minimum standards and specifications
for the houses in question. However, the sale and purchase agreements together
with the approved building plan are separate documents. The specifications
to the houses as contained in the sale and purchase agreement and the approved
building plan may be different (but shall not be less favourable) compared
to the Specifications in the UBBL. So, if the developer has satisfied the
specifications in the UBBL, it does not necessarily mean that he has also
satisfied or fulfilled the specifications in the sale and purchase agreement
and the approved building plan.
The rights of the house-buyers to claim compensation for any defect or
non-compliance with the specifications, do not depend on the issuance of
the CFO. These rights are provided under cl. 23 to the sale and purchase
agreement as well as under the common law for breach of contract. Clause
23 provides for defect liability period of (12) months after the date of
delivery of vacant possession to the house buyers. Manner of delivery of
vacant possession is provided under cl. 19 ie, upon the issue by developer's
Architect of a certificate certifying that the construction of the building
has been duly completed and the purchaser having paid all monies payable
and performed or observed all the terms and covenants on his part under
the sale and purchase agreement. However, such possession shall not give
the purchaser the right to occupy and the purchaser shall not occupy the
said house until such time as the CFO is issued. It is the duty of the developer
to procure the issue of the CFO from the appropriate authority as provided
under cl. 20 of the sale and purchase agreement. In reality, some defects
or non-compliance of specifications can only be discovered when the purchaser
has occupied the house for sometimes. That is why, cl. 23 gives a grace
period of 12 months for the purchaser to discover the defects and non-compliance
of specifications. After that 12 months period, purchaser may still enforce
their rights under the common law for breach of contract. If the appellant/defendant's
argument is to be accepted, then the rights and protection granted to house
buyers under cl. 23 as well as under the relevant laws (particularly the
Housing Developers (Control and Licensing) Regulations 1982 (now as amended
in 1989) and the common law for breach of contract, would be useless and
serve no purpose at all.
Conclusion
In view of the foregoing, I dismiss all the 26 appeals against all the
respondents/plaintiffs with costs. Decisions of the learned magistrate in
all the 26 cases are upheld.
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