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HOUSING DEVELOPMENT (CONTROL AND LICENSING)
ACT, 1966
(Act 118)
(In forced from 1 December 2002 to 11 April 2007)
|
Arrangement of
Sections |
PREAMBLE
PART I - PRELIMINARY
1. Short title and application.
2. Saving and exemption.
3.
Interpretation.
4. Appointment of Controller, Deputy Controllers, Inspectors and other
officers and servants.
PART II - LICENSING OF HOUSING DEVELOPERS
5. Prohibition against housing development except by virtue of a licence
and provisions relating to the grant of a licence.
6. Conditions or restrictions for the grant of a licence.
6A. Controller to keep deposit.
6B. Controller may forfeit deposit.
PART III - DUTIES OF A LICENSED HOUSING DEVELOPER
7. Duties of a licensed housing developer.
7A. Licensed housing developer to open and maintain Housing
7B. Licensed housing developer for the purpose of sections 8, 8A, 11
and 12.
8. Arrangement or agreement affecting the business of a licensed.
8A. Statutory termination of sale and purchase agreements.
9. Audit.
PART IV - INVESTIGATION AND ENFORCEMENT
10.
Investigation.
10A. Powers of entry, search and seizure.
10B. Search of person.
10C. Obstruction to exercise of powers by an Inspector.
10D. Requirement to provide translation.
10E. Power to examine persons.
10F. Specific persons in respect of whom powers of investigation may
be exercised.
10G. Assistance to police or other public officer.
10H. Protection of informers.
10I. Authority to act.
10J. Limitation on the powers of an Inspector.
PART V - POWERS OF MINISTER
11. Powers of the Minister to give directions for the purpose of safeguarding
the interests of purchasers.
12. Powers of the Minister to give general directions.
13. Revocation and suspension of a licence.
13A. Controller to report the conduct of an architect or engineer.
14. Opportunity of being heard to be afforded before revocation or suspension
of a licence and in certain other cases.
15. Individual not eligible to take part in management of the business
of a licensed housing developer. |
16. Right of appeal to the Minister by an aggrieved licensed housing
developer against the decision of the Controller.
PART VI - TRIBUNAL FOR HOMEBUYER CLAIMS
16A. Meaning of "homebuyer"
16B. Establishment of Tribunal for Homebuyer Claims.
16C. Membership of Tribunal.
16D. Temporary exercise of functions of Chairman.
16E. Vacation of office.
16F. Revocation of appointment.
16G.
Resignation.
16H. Filling of vacancy.
16I.
Remuneration.
16J. Secretary to Tribunal and other officers.
16K. Sittings of Tribunal.
16L. Commencement of proceedings.
16M. Jurisdiction of Tribunal.
16N. Limitation of jurisdiction.
16O. Extension of jurisdiction by agreement.
16P. Abandonment to bring claim within jurisdiction.
16Q. Cause of action not to be split.
16R. Exclusion of jurisdiction of court.
16S. Notice of claim and hearing.
16T. Negotiation for settlement.
16U. Right to appear at hearings.
16V. Proceedings to be public.
16W.
Evidence.
16X. Tribunal may act in absence of party.
16Y. Awards of the Tribunal.
16Z. Reference to a Judge of the High Court on a question of law.
16AA. Reasons for decision.
16AB. Orders and settlement to be recorded in writing.
16AC. Decisions of Tribunal to be final.
16AD. Criminal penalty for failure to comply.
16AE. Procedure where no provision is made.
16AF.
Want of form.
16AH. Act or omission done in good faith.
16AI. Regulations in respect of the Tribunal.
PART VII - MISCELLANEOUS
17. Indemnity and protection against suit and proceedings.
18. Offences relating to a licence under section 5.
19. Offences by a housing developer.
20. Offences by a director of or a person connected with the business
of a licensed housing developer in certain cases.
21. Penalty for offences not otherwise provided for.
22. Liability of director, manager and other officials for offences
22A. Public servants and public officers.
22B. Application of Public Authorities Protection Act 1948.
22C. Right to initiate and maintain actions.
23.
Prosecution.
23A. Power to compound.
24. Powers to make regulations. |
HOUSING DEVELOPMENT (CONTROL AND LICENSING)
ACT, 1966
(Act 118)
(In forced from 1 December 2002 to 11 April 2007)
PREAMBLE
First enacted 1966 (Act No. 38 of 1966)
Revised 1973 (Act 118 w.e.f.16 August 1973)
An Act to provide for the control and licensing of the business of housing
development in West Malaysia and for matters connected therewith.
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PART I - PRELIMINARY
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1. Short title
and application.
(1) This Act may be cited as the Housing Development
(Control and Licensing) Act 1966. |
(2) (Omitted). |
(3) This Act shall
apply only in West Malaysia. |
2. Saving and exemption.
(1) (Deleted
by Act A1142) |
(2) The Minister
may be notification published in the Gazette exempt any housing developer
from any or all of the provisions of this Act. |
(3) The provisions
of this Act which relate to a company shall be construed as in addition or
supplementary to, and not in derogation from, the provisions of any written
law relating to companies. |
3. Interpretation. |
In this Act, unless
the context otherwise requires - |
"bank" means
any bank licensed under the Banking and Financial Institutions
Act 1989 (Act 372) or under the Islamic Banking Act 1983
(Act 276); |
"body of persons"
means a group of persons, not being an incorporated body or group; |
"certificate of fitness for occupation" means
the certificate of fitness for occupation given or granted under the Street,
Drainage and Building Act 1974 [Act 133] and any by-laws made under
that Act; |
"company" means
any company incorporated, formed or registered under any written law for the
time being in force in Malaysia relating to companies, and includes any body
corporate established under any written law in force in Malaysia; |
"Controller"
means the Controller of Housing appointed under section 4; |
"Deputy Controller" means the Deputy Controller
of Housing appointed under section 4; |
"finance company"
means any finance company licensed under the Banking
and Financial Institutions Act 1989 (Act 372); |
"firm" means
an unincorporated body of persons (whether consisting of individuals or of
corporations or partly of individuals and partly of corporations) associated
together for the purpose of carrying on business; |
"housing accommodation"
includes any building, tenement or messuage which is wholly or principally
constructed, adapted or intended for human habitation or partly for human
habitation and partly for business premises but does
not include an accommodation erected on any land designated for or approved
for commercial development; |
"housing developer"
means any person, body of persons, company, firm or society (by whatever name
described), who or which engages in or carries on or undertakes or causes
to be undertaken a housing development; |
"housing development"
means to develop or construct or cause to be constructed in any manner more
than four units of housing accommodation and includes the collection of monies
or the carrying on of any building operations for the purpose of erecting
housing accommodation in, on, over or under any land; or the sale of more
than four units of housing lots by the landowner or his nominee with the view
of constructing more than four units of housing accommodation by the said
landowner or his nominee; |
"Housing Development
Account" means an account opened and maintained by a licensed housing
developer pursuant to section 7A; |
"housing lot"
means any piece of land surveyed or otherwise, to which a lot number has been
assigned to it and which is subject to the category "building" in accordance
with the National Land Code 1965 (Act 56/65); |
"Inspector"
means an inspector appointed under section 4; |
"licence" means
a licence granted under section 5; |
"licensed housing
developer" means any housing developer licensed under section 5 to engage
in or carry on or undertake a housing development
and includes the holder of any power of attorney
of such housing developer duly created under the Powers of Attorney Act 1949
[Act 424]; |
"local authority" includes any person or body
of persons appointed or authorized under any written law to exercise and perform
the powers and duties which are conferred and imposed on a local authority
under any written law; |
"prescribed"
means prescribed by regulations made under this Act,
and where no mode is mentioned means prescribed from time to time by order
published in the Gazette; |
"purchaser"
means any person who purchases housing accommodation
or who has any dealing with a licensed housing developer in respect of the
acquisition of housing accommodation; |
"stakeholder" means any solicitor holding moneys
as stakeholder for payment to a housing developer pursuant to sale and purchase
agreements in respect of a housing development which the housing developer
is engaged in, carries on or undertakes or causes to be undertaken; |
"Tribunal" means the Tribunal for Homebuyer Claims
established under section 16B. |
4. Appointment of Controller, Deputy Controllers, Inspectors and other
officers and servants.
(1) For the purpose of this Act, the Minister may appoint a Controller
of Housing and such number of Deputy Controllers of Housing, Inspectors of
Housing and other officers and servants as the Minister may deem fit from
amongst members of the public service.(2)
The Controller and Deputy Controllers shall have and may exercise any of the
powers conferred on an Inspector by or under this Act.
(3) The Controller may, in writing, delegate all or
any of his powers or functions under this Act, except his power of delegation,
to any Deputy Controller, Inspector, officer or servant appointed under subsection
(1).(4) Without prejudice to subsection (2),
the Controller may, in writing, delegate any of his powers and functions under
this Act in respect of the investigation of offences under this Act and the
enforcement of this Act to any public officer or officer of a local authority.
(5) Any delegation under subsection (3) or (4) may be
revoked at any time by the Controller and does not prohibit the Controller
from himself exercising the powers or performing the functions so delegated. |
PART II - LICENSING OF HOUSING
DEVELOPERS
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5. Prohibition against housing development except by virtue of a licence
and provisions relating to the grant of a licence. (1) No housing
development shall be engaged in, carried on, undertaken or caused to be undertaken
except by a housing developer in possession of a licence issued under this
Act.
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(2) Except with the
written consent of the Controller no housing developer other than a licensed
housing developer shall assume or use in relation to his business or any part
of his business the words "housing developer" or any of its derivatives or
any other word or words indicating the carrying on of the business of housing
development. |
(3) A housing developer
who desires to engage in or carry out or undertake or cause to be undertaken
a housing development shall apply to the Controller for a licence and any
such application shall be made in the prescribed form and in the case of any
applicant listed in column (1) of the Schedule the application shall be accompanied
by the documents listed against him to column (2), every such document being
verified by means of a statutory declaration made by the person listed in
column (3) of the said Schedule. |
(4) Upon receiving
an application for a licence under this section, the Controller may grant
the licence applied for or refuse to grant such a licence; and in granting
such a licence the Controller may impose thereon such conditions (including
the period during which the licence shall be valid) as he may deem fit and
proper. |
(4A) No application for a licence under this section
shall be considered unless the prescribed fees have been paid to the Controller. |
(4B) There shall
be charged and paid to the Controller on the grant of a licence and at such
intervals after such grant during the period of validity of the licence such
fees as may be prescribed. |
(5) Subject to section
14, the Controller may at any time vary, cancel or alter the conditions
imposed under subsection (4) or impose any new
or additional conditions; or, where the licence is not subject to any condition,
impose thereon such conditions as the Controller may deem fit for carrying
out the provisions of this Act. |
6. Conditions or restrictions for the grant of a licence.
(1) Subject to the exercise of power of waiver by the Minister under subsection
(2), the licence applied for under section 5 shall not be granted -
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(a) unless the applicant has a capital issued and paid up in cash
of not less than two hundred and fifty thousand ringgit
and makes a deposit with the Controller of not less
than two hundred thousand ringgit in cash or in such other form as the Minister
may determine, if the application is made by a company; or
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(b) unless the applicant makes a deposit with the Controller of
not less than two hundred thousand ringgit
in cash or in such other form as the Minister may determine, if the application
is made by a person or body of persons;
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(c) unless the applicant is not himself nor is any member or partner
thereof a person convicted of an offence involving fraud or dishonesty or
an undischarged bankrupt, if the application is made respectively by a person
or a body of persons or a firm;
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(d) unless no one who is convicted of an offence involving fraud
or dishonesty or who is an undischarged bankrupt is holding office as director,
manager or secretary of the applicant or other
similar office or position, if the application is made by a company, or
is holding office as president, secretary or treasurer
of the applicant or other similar office or
position, if the application is made by a society;
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(e) unless, at the time the application
is made, the applicant or any member or partner of the applicant, if the
applicant is a body of persons or firm, or a director, manager or secretary
of the applicant, if the applicant is a company, has not, due to a conviction
for an offence under this Act, been sentenced to a fine exceeding ten thousand
ringgit or to imprisonment (other than imprisonment in default of a fine
not exceeding ten thousand ringgit);
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(f) unless, at the time the application
is made, a person who had been a director of or had been directly concerned
in the management of the business of a licensed housing developer which
has been wound up by a court is not a director or is not directly concerned
in the management of the business of the applicant; and
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(g) if the registration of the applicant's
architect or engineer has been cancelled and has not been reinstated under
the Architects Act 1967 [Act 117] or the Registration of Engineers
Act 1967 [Act 138] at the time the application is made.
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(1A) For the purposes of paragraphs (1)(d),
(e) and (f), if the applicant is a company, the expression "applicant"
shall include the holding company of the applicant, or a subsidiary of the
applicant or a subsidiary of the holding company of the applicant. |
(2) The Minister
may in his absolute discretion waive any or all of the conditions set out
in paragraph (1) (a), (b) or (d) or substitute any or
all of the said conditions for such other conditions as he may consider fit
and proper. |
6A. Controller
to keep deposit.
Subject to any direction of the Minister, the Controller
shall keep the deposit made under paragraphs 6(1)(a) and (b)
until the expiry of the defect liability period of the housing development.
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6B. Controller
may forfeit deposit. If any licensed
holding developer-
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(a) is carrying on his business, in the
opinion of the Controller, in a manner detrimental to the interest of the
purchasers or to any member of the public;
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(b) has insufficient assets to cover his
liabilities;
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(c) is contravening any of the provisions
of this Act; or
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(d) has ceased to carry on housing development
in West Malaysia,
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the Controller
may, after having given the licensed developer an opportunity to submit reasons
within a specified time on why the deposit under paragraph 6(l)(a)
or (b) should not be forfeited, forfeit the whole or a part of the
deposit. |
PART III - DUTIES OF A LICENSED
HOUSING DEVELOPER
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7. Duties
of a licensed housing developer. |
In addition to the liabilities and duties imposed in sections 8 and 9,
a licensed housing developer shall -
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(a) within four weeks of the making of any alterations in or to
any of the documents submitted to the Controller under subsection 5 (3)
furnish to the Controller written particulars of the alterations;
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(b) exhibit at all times in a conspicuous position in any office
and branch office of the licensed housing developer a copy of
his licence, advertisement and sale permit and a copy
of his last audited balance-sheet as
soon as the same is available and such information as the present or former
full name, usual residential address, nationality, nationality of origin
(where the present nationality is not that of origin), business or occupation
(if any) of each person who has the control and management of the business
of the licensed housing developer and particulars of any other directorship
held by that person;
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(c) keep or cause to be kept in his office in West Malaysia such
accounting and other records as will sufficiently explain the transactions
and the financial position of the licensed housing developer and enable
true and fair profit and loss accounts and balance-sheets and any documents
required to be attached thereto to be prepared from time to time, and shall
cause these records to be kept in such manner as to enable them to be conveniently
and properly audited;
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(d) every year appoint an auditor or auditors in the manner required
under section 9;
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(e) within six months after the close
of the financial year of the licensed housing developer in question send
to the Controller and also publish in the Gazette a copy of the report
of the auditor prepared under section 9 together with a copy of his balance-sheet
and profit and loss account,
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(f) not later than the 21st day of January and the 21st day of
July of each year, send to the Controller a statement,
in such form and containing such information as the
Controller may from time to time determine, on the progress of the housing
development which the housing developer is engaged in, carries on or undertakes
or causes to be undertaken;
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(g) where he considers that he is likely to become unable to meet
his obligations to the purchasers at any
stage of the housing development before the issuance
of the certificate of fitness for occupation, forthwith inform the
Controller of such fact;
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(h) inform the Controller of the handing over
of vacant possession of the housing accommodation in the housing development
to the purchasers and submit a certified true copy of his architect's certificate
certifying that the construction of the housing accommodation has been duly
completed and that water and electricity supplies are ready for connection
to the housing accommodation;
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(i) inform the Controller if the appropriate
authority has refused to accept the submission of any document relating
to the issuance of certificates of fitness for occupation and submit the
refusal letter from the appropriate authority to the Controller;
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(j) ensure that the development of the housing
accommodation has been carried out in accordance with any requirements prescribed
under any law regulating buildings and has exercised all such diligence
as may be required for the issuance of certificates of fitness for occupation
and for the issuance and transfer of the titles to the housing accommodation
to the purchasers; and
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(k) inform the Controller of the progress
in the issuance of separate or strata titles for the housing accommodation
and the transfer of such titles to the purchasers.
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7A. Licensed housing developer to open and maintain Housing
(1) Subject to subsection (9), every licensed housing developer shall open
and maintain a Housing Development Account with a bank or finance company
for each housing development undertaken by the licensed housing developer.
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(2) Where a housing
development is to be developed in phases, the licensed housing developer shall
open and keep a Housing Development Account under subsection (1) for each
phase of such housing development. |
(3) The licensed
housing developer shall pay into the Housing Development Account of a housing
development the purchase monies received by the licensed housing developer
from the sale of housing accommodation in the housing development and any
other sum or sums of money which are required by regulations made under this
Act to be paid into the Housing Development Account. |
(4) The licensed housing developer shall not withdraw any money from the
Housing Development Account except as authorised by regulations made under
this Act.
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(5) Subject to paragraph (6)
(b), all monies in the Housing Development Account
and all moneys held by the stakeholder
shall, notwithstanding any other written law to the contrary, be deemed
not to form part of the property of the licensed housing developer in the
event - |
(a) the licensed housing developer enters into any composition
or arrangement with his creditors or has a receiving order or an adjudication
order made against him; or
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(b) the licensed housing developer, being a company, goes into
voluntary or compulsory liquidation.
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(6) Upon the happening of any
of the event referred to in subsection (5) - |
(a) the monies in the Housing Development Account
and moneys held by the stakeholder shall vest
in the official receiver, trustee in bankruptcy or liquidator as the case
may be, to be applied for all or any of the purposes for which monies in
the Housing Development Account are authorised by regulations made under
this Act to be withdrawn; and
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(b) any money remaining in the Housing Development Account,
and moneys held by the stakeholder after all
payments have been made pursuant to paragraph (a) and all liabilities
and obligations of the licensed housing developer under the sale and purchase
agreements in respect of the housing development have been fully discharged
and fulfilled, shall be held by the official receiver, trustee in bankruptcy
or liquidator as the case may be, as money belonging to the licensed housing
developer to be applied in accordance with the law relating to bankruptcy
of or the winding-up of a company.
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(7) Notwithstanding
any other written law to the contrary, all monies in the Housing Development
Account and moneys held by the stakeholder
shall not be garnished until all liabilities and obligations of the
licensed housing developer under the sale and purchase agreements in respect
of the housing development have been fully discharged and fulfilled. |
(8) Subject to
the provisions of the Banking and Financial Institutions
Act 1989 and the Islamic Banking Act 1983, the Minister may, if he
thinks necessary, appoint an approved company auditor to investigate the books,
accounts and transactions of a Housing Development Account and the licensed
housing developer shall pay all expenses incurred hereto. |
(9) This section
shall not apply to any housing development carried on by a licensed housing
developer where all the housing accommodation in the housing development
will not be offered for sale and purchase
before the completion of the housing development and
the issuance of certificates of fitness for occupation. |
(10) Any housing developer who contravenes or fails to comply with this
section shall be guilty of an offence and shall, on conviction, be liable
to a fine which shall not be less than fifty
thousand ringgit but which shall not exceed five
hundred thousand ringgit and shall also be liable to imprisonment for a term
not exceeding three years or to both.
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7B. Licensed housing developer for the purpose of sections 8, 8A, 11
and 12. For the purpose of sections
8, 8A, 11 and 12, "licensed housing developer" includes any housing developer
whose licence has expired.
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8. Arrangement or agreement affecting the business of a licensed.
(1) Where a licensed housing developer proposes to enter into an arrangement
or agreement to sell, transfer, assign, dispose of or
reconstruct his business or management relating to housing development
either by amalgamation or otherwise, the licensed housing developer shall
as soon as possible notify the Controller of the proposed arrangement or agreement
and unless approved by the Controller under subsection (2), the licensed housing
developer shall not proceed with that arrangement or agreement.
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(2) Where the Controller
receiver the notification of the proposed arrangement or agreement under subsection
(1), the Controller may approve the arrangement or agreement or refuse to
give approval thereto; and in approving the same he may impose thereon such
conditions as he may deem fit and proper for the purpose of carrying into
effect the provisions of this Act. |
8A. Statutory termination of sale and purchase agreements.
(1) Notwithstanding anything contained in any agreement,
a licensed housing developer may apply to the Minister for approval to terminate
all the sale and purchase agreements entered into in respect of a housing
development or any phase of a housing development which the housing developer
is engaged in, carries on or undertakes or causes to be undertaken if-
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(a) six months after the execution of the
sale and purchase agreements, development of the housing accommodation in
that housing development or phase has not commenced; and
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(b) at least seventy-five per cent of all
the purchasers who have entered into the sale and purchase agreements have
agreed with the housing developer in writing to terminate the sale and purchase
agreements.
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(2) Any
application made under subsection (1) shall be supported by- |
(a) the written consent of the licensed
housing developer and of each of the purchasers who have agreed to terminate
the sale and purchase agreements and such consent shall have been duly executed
by the licensed housing developer and the purchaser, as the case may be,
and witnessed by his solicitors or a Commissioner for Oaths not earlier
than one month before the date of the application; and
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(b) such other documents or evidence as
the Minister may require or as may be determined including such evidence
which may satisfy the Minister that the licensed housing developer is financially
capable of refunding to the purchasers and their financiers all the moneys
paid by them to the licensed housing developer if the Minister approves
such application.
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(3) For
the purpose of this section, joint purchasers irrespective of any number in
a sale and purchase agreement shall be considered as one purchaser. |
(4) Upon
receipt of an application under subsection (1), the Minister may grant or
refuse the application for approval. |
(5) In
granting the approval under subsection (4) the Minister may impose such conditions
as he may deem fit and proper. |
(6) The
decision of the Minister shall be final and shall not be questioned in any
court and it shall be binding on the licensed housing developer and all the
purchasers and no injunction shall be granted to restrain any person from
carrying out the decision of the Minister. |
(7) All
the sale and purchase agreements in respect of the housing development or
the phase of a housing development which is the subject of an approval under
subsection (4) including those of the remaining purchasers who have not agreed
to the termination shall be deemed to have been duly terminated. |
(8) The
licensed housing developer shall, within fourteen days from the date of receipt
of the Minister's approval, inform all the purchasers in writing of the Minister's
decision. |
(9) The licensed housing developer shall refund all
moneys received by the licensed housing developer from the respective purchasers
free of any interest within the period stated in the Minister's approval.
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(10) Upon
receipt of the refund under subsection (9), the purchasers shall immediately
cause all encumbrances on the land to be removed and the cost and expenses
for such removal shall be borne by and may be claimed as a civil debt from
the housing developer. |
(11) Any
person who fails to comply with any of the provisions of this section shall
be guilty of an offence and shall, on conviction, be liable to a fine not
exceeding fifty thousand ringgit and to a further fine not exceeding five
thousand ringgit for every day during which the offence continues after conviction. |
9. Audit. |
(1) Subject to subsection (2), every licensed housing developer shall every
year or as often as the need arises appoint a person approved by the Minister
to be his auditor or auditors; and where a licensed housing developer fails
to make the appointment or fails to appoint another auditor in place of an
auditor who has resigned his office or dies or whose appointment has been
terminated, the Minister may appoint any person or persons who in his opinion
is or are fit and proper to be an auditor or auditors for the licensed housing
developer in question and fix remunerations which shall be paid to the auditor
or auditors so appointed and such remunerations shall be paid by the licensed
housing developer for whom the auditor or auditors is or are so appointed.
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(2) No person having
an interest in the business of a licensed housing developer either as a shareholder
or otherwise; and no director, officer, employee or agent of a licensed housing
developer shall be eligible for appointment as an auditor of the housing developer;
and where any person who is appointed as an auditor of a licensed housing
developer shall after his appointment acquire an interest in the business
of the licensed housing developer or become a director, an officer, employee
or agent of the licensed housing developer, he shall forthwith cease to be
an auditor of that licensed housing developer. |
(3) Every auditor
of a licensed housing developer shall make a report to the Controller as to
the annual balance-sheet and profit and loss accounts of the licensed housing
developer for whom the auditor is appointed and shall state in every such
report whether or not in his opinion - |
(a) the balance-sheet and the profit and loss accounts are properly
drawn up and so as to give a true and fair account of the state of the licensed
housing developer's affairs;
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(b) the accounting and the records examined by him are properly
kept; and
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(c) if the auditor has called for an explanation or information
from the officers or agents of the licensed housing developer, such explanation
or information has been satisfactory.
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(4) Every auditor
of a licensed housing developer shall have a right of access at all times
to the accounting and other records of the licensed housing developer and
shall be entitled to require such information and explanation as he desires
for the purpose of audit from the officers of the licensed housing developer
or from any other person who is in possession of the information or who could
give the information or explanation. |
(5) In addition to
the duties and powers under this section, every auditor of a licensed housing
developer may also exercise the powers and perform the duties conferred or
imposed upon the Controller and Inspectors under section 10 relating to the
investigation into the affairs of a licensed housing developer or his accounting
or other records. |
PART IV - INVESTIGATION AND ENFORCEMENT
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10. Investigation. |
(1) Either on his
own volition or upon being directed by the Minister under subsection (2),
the Controller or an Inspector may from time to time under conditions of secrecy
investigate the commission
of any offence under this Act or investigate
into the affairs of or into the accounting or other records of any
housing developer. |
(2) The Minister may direct the Controller or an Inspector to make an investigation
under subsection (1) -
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(a) if he has reason to believe that the housing developer in
question is carrying on his business in a manner detrimental to his purchaser;
or has assets insufficient to meet his liabilities or is contravening any
of the provisions of this Act; or
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(b) if an application for such an investigation is made to him,
and every such application shall be supported by not less than five purchasers
and accompanied with such evidence and such security as the Minister may
require for the purpose of satisfying himself that the application is made
in good faith, and of paying the costs of such an investigation.
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(3)
(Deleted by
Act A1142) |
10A.
Powers of entry, search and seizure.
(1) If it appears to a Magistrate, upon written information
on oath and after such inquiry as he considers necessary, that there is reasonable
cause to believe that any premises have been used or are about to be used
for, or there is in or on any premises evidence necessary to establish, the
commission of an offence under this Act, the Magistrate may issue a warrant
authorizing an Inspector to whom it is directed, at any reasonable time by
day or night and with or without assistance-
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(a) enter any premises and there search
for, seize and detain any property, book or other document;
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(b) inspect, make copies of, or take extracts
from, any book or other document so seized and detained;
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(c) take possession of, and remove from
the premises, any property, book or other document so seized and detained;
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(d) search any person who is in, or on,
such premises, and for the purpose of such search detain such person and
remove him to such place as may be necessary to facilitate such search,
and seize and detain any property, book or other document found on such
person;
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(e) break open, examine, and search, any
article, container or receptacle; or stop, detain or search any conveyance.
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(2) An
Inspector authorized under subsection (1) may, if it is necessary so to do- |
(a) break open any outer or inner door of
such premises and enter such premises and every part of such premises;
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(b) remove by force any obstruction to such
entry, search, seizure, detention or removal; or
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(c) detain all or any persons found on any
premises, or in any conveyance, searched under subsection (1) until such
premises or conveyance have been searched.
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(3) If
an Inspector has reasonable cause to suspect by reason of delay in obtaining
a search warrant under subsection (1) that - |
(a) the investigation would be adversely
affected; or
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(b) evidence of the commission of an offence
is likely to be tampered with, removed, damage or destroyed,
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he may
enter the premises and exercise in, and in respect of the premises, all the
powers referred to in subsections (1) and (2) in as full and ample a manner
as if he were authorized to do so by a warrant under subsection (1). |
(4) A list
of all things seized in the course of a search made under this section and
of the places in which they are respectively found shall be prepared by the
Inspector conducting the search and signed by him. |
(5) The
occupant of the premises entered under subsection (1), or some person on his
behalf, shall in every instance be permitted to attend during the search,
and a copy of the list prepared and signed under subsection (4) shall immediately
be delivered to such occupant or person. |
(6) An
Inspector shall, unless otherwise ordered by any court- |
(a) on the close of investigations or any
proceedings arising therefrom; or
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(b) with the prior written consent of the
Controller for the Inspector to act on his behalf for this purpose at any
time before the close of investigations,
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release
any property, book or other document seized, detained or removed by him or
any other Inspector, to such person as he determines to be lawfully entitled
to the property, book or other document if he is satisfied that it is not
required for the purpose of any prosecution or proceedings under this Act,
or for the purpose of any prosecution under any other written law. |
(7) A record in writing shall be made by the Inspector
effecting any release of any property, book or other document under subsection
(6) in respect of such release specifying therein in detail the circumstances
of, and the reason for, such release.
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(8) Where
the Inspector is unable to determine the person who is lawfully entitled to
the property, book or other document or where there is more than one claimant
to such property, book or other document, the Inspector shall report the matter
to a Magistrate who shall then deal with the property, book or other document
as provided for in subsections 413(2), (3) and (4) and sections 414, 415 and
416 of the Criminal Procedure Code [Act 593]. |
10B. Search of person.
(1) An Inspector may search any person whom he has reason
to believe has on his person any property, book or other document, or other
article necessary, in his opinion, for the purpose of an investigation into
any offence under this Act, and for the purpose of such search may detain
such person for such period as may be necessary to have the search carried
out, which shall not in any case exceed twenty-four hours without the authorization
of a Magistrate, and may remove him in custody to such place as may be necessary
to facilitate such search.
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(2) An
Inspector making a search of a person under subsection (1) may seize, detain,
or take possession of any property, book or other document, or article, found
upon such person for the purpose of the investigation being carried out by
him. |
(3) No
female person shall be searched under this section or under section 10A except
by another female person and with strict regard for decency. |
10C. Obstruction to exercise of powers by an Inspector.
No person shall-
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(a) refuse any Inspector exercising his powers
under section 10A or 10B access to any premises or any part of such premises,
or fail to submit to the search of his person;
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(b)
assault, obstruct, hinder or delay such Inspector in effecting any entrance
which he is entitled to effect; |
(c)
fail to comply with any lawful demands of any Inspector in the execution of
his duties under section 10A or 10B; |
(d)
refuse to give to an Inspector any information which may reasonably be required
of him and which he has it in his power to give; |
(e)
fail to produce to, or conceal or attempt to conceal from, an Inspector, any
property, book, other document, or article in relation to which an Inspector
has reasonable grounds for suspecting that an offence has been or is being
committed under this Act; |
(f) rescue or endeavour to rescue any thing
which has been duly seized;
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(g) furnish to the Inspector as true any information
which he knows or has reason to believe to be false; or
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(h)
before or after any seizure, break or otherwise destroy any thing to prevent
the seizure or the securing of the thing. |
10D. Requirement
to provide translation. (1) Where an
Inspector finds, seizes, detains, or takes possession of any book or other
document in the exercise of any power under this Act, and such book or other
document or any part of it is in a language other than the national language
or the English language, or in any sign or code, the Inspector may orally
or in writing require the person who had the possession, custody or control
of such book or other document, to furnish to the Inspector a translation
in the national language of such book or other document within such period
as, in the opinion of the Inspector, would be reasonable having regard to
the length of the book or other document, or other circumstances relating
to it.
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(2) No
person shall knowingly furnish a translation under subsection (1) which is
not an accurate, faithful and true translation, or knowingly make a translation
under that subsection which is not accurate, faithful and true. |
10E. Power to examine
persons. (1) Where an Inspector suspects any person to have committed
an offence under this Act, he may, if in his opinion it is reasonably necessary
to do so for the purposes of investigating into such offence-
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(a) order any person orally or in writing to attend before the
Inspector for the purpose of being examined orally by the Inspector in relation
to any matter which may, in the opinion of the Inspector, assist in the
investigation into the offence;
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(b) order any person orally or in writing to produce before the
Controller or the Inspector books, other documents, property, articles,
or things which may, in the opinion of the Controller or the Inspector,
assist in the investigation into the offence; or
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(c) by written notice require any person to furnish a statement
in writing made on oath or affirmation setting out in the notice all such
information which may be required under the notice, being information which,
in the opinion of the Controller, would be of assistance in the investigation
into the offence.
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(2) A person to whom an order
under paragraph (l)(a) or (b), or a written notice under paragraph
(l)(c), has been given shall comply with the terms of such order or
written notice, as the case may be, and, in particular- |
(a) a person to whom an order under paragraph (1)(a) has
been given shall attend in accordance with the terms of the order to be
examined, and shall continue to so attend from day to day as directed by
the Inspector until the examination is completed, and shall during such
examination disclose all information which is within his knowledge, or which
is available to him, or which is capable of being obtained by him, in respect
of the matter in relation to which he is being examined, whether or not
any question is put to him with regard thereto, and where any question is
put to him he shall answer the question truthfully and to the best of his
knowledge and belief, and shall not refuse to answer any question on the
ground that it tends to incriminate him;
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(b) a person to whom an order has been given under paragraph (1)(b)
shall not conceal, hide, destroy, alter, remove from or send out of Malaysia,
or deal with, expend, or dispose of, any book, other document, property,
article, or thing specified in the order, or alter or deface any entry in
any such book or other document, or cause such act to be done, or assist
or conspire to do the act; and
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(c) a person to whom a written notice has been given under paragraph
(1)(c) shall, in his statement made on oath or affirmation, furnish
and disclose truthfully all information required under the notice which
is within his knowledge, or which is available to him, or which is capable
of being obtained by him, and shall not fail to furnish or disclose the
information on the ground that it tends to incriminate him.
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(3) A person to whom an order
or a notice is given under subsection (1) shall comply with such order or
notice and with the provisions of subsection (2) in relation to the order
or notice, notwithstanding the provisions of any written law, whether enacted
before or after the commencement of this Act, or of any oath, undertaking
or requirement of secrecy, to the contrary, or of any obligation under any
contract, agreement of arrangement, whether express or implied, to the contrary. |
(4) Where any person discloses
any information or produces any property, book, other document, article, or
thing, pursuant to subsections (1) and (2), neither the first-mentioned person,
nor any other person on whose behalf or direction or as whose agent or employee
the first-mentioned person may be acting, shall, on account of such disclosure
or production, be liable to any prosecution for any offence under or by virtue
of any law, or to any proceeding or claim in any form or of any description
by any person under or by virtue of any agreement or arrangement, or otherwise. |
(5) An Inspector may seize, take
possession of and retain for such duration as he deems necessary, any property,
book, other document, article or thing produced before him in the course of
an investigation under subsection (1), or search the person who is being examined
by him under paragraph (1)(a), or who produces anything to him under
paragraph (1)(b), for ascertaining whether anything relevant to the
investigation is concealed, upon such person or is otherwise upon such person. |
(6) An examination under paragraph
(1)(a) shall be reduced into writing by the Inspector and shall be
read to and signed by the person being examined, and where such person refuses
to sign the record, the Inspector shall endorse on the record under his hand
the fact of such refusal and the reasons for such refusal, if any, stated
by the person examined. |
(7) The record of an examination
under paragraph (1)(a), or a written statement on oath or affirmation
made pursuant to paragraph (1)(c), or any property, book, other document,
article or thing produced under paragraph (1)(b) or in the course of
an examination under paragraph (1)(a) or under a written statement
on oath or affirmation made pursuant to paragraph (1)(c), shall, notwithstanding
any written law or rule of law to the contrary, be admissible in evidence
in any proceedings in any court- |
(a) for, or in relation to, an offence under this Act; or
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(b) for, or in relation to, any other matter under this Act,
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regardless whether such proceedings
are against the person who was examined, or who produced the property, book,
other document, article or thing, or who made the written statement on oath
or affirmation, or against any other person. |
10F. Specific persons in respect of whom powers of investigation may
be exercised. The powers of investigation conferred by this Act
on an Inspector, may be exercised by him against-
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(a) any past or present business associate; or
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(b) any person who is or was concerned in the control or management,
in whole or in part of the affairs,
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of the person suspected to have
committed an offence under this Act. |
10G.
Assistance to police or other public officer.
The Controller may on his own initiative, or on the
request of an Inspector-
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(a)
supply to a police officer or any other public officer a copy of any book
or other document seized, detained or taken possession of under section 10A
or 10B, or of any record of examination under paragraph 10E(l)(a),
or of any written statement on oath or affirmation made under paragraph 10E(l)(c),
or of any book or other document produced under paragraph 10E(l)(b),
or otherwise in the course of any examination under paragraph 10E(l)(a),
or under any written statement on oath or affirmation made pursuant to paragraph
10E(l)(c), and such police officer or other public officer may make
such use of such copy of such record, statement, book or other document as
may be necessary or expedient in relation to the exercise of his powers, the
performance of his functions, or the discharge of his duties, in respect of
any person; or |
(b) allow a police officer or any other public
officer to have access to and inspect any property, book, other document,
article or thing which had been produced before, or seized, detained or taken
possession of, by an Inspector under this Act, and such police or other public
officer may make such use of any knowledge gained by such access or inspection
as may be necessary or expedient in relation to the exercise of his powers,
the performance of his functions, or the discharge of his duties, in respect
of any person.
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10H. Protection of
informers. (1) Except as provided in
subsection (3), no witness in any civil or criminal proceedings shall be obliged
or permitted to disclose the name or address of any informer or the substance
and nature of the information received from him or to state any matter which
may lead to his discovery.
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(2) If
any books, documents, records or papers which are in evidence or are liable
to inspection in any civil or criminal proceedings contain any entry in which
any informer is named or described or which might lead to his discovery, the
court shall cause all such passages to be concealed from view or to be obliterated
so far only as may be necessary to protect the informer from discovery. |
(3) If on trial for any offence under this Act the
court after full inquiry into the case believes that the informer willfully
made in his complaint a material statement which he knew or believed to be
false or did not believe to be true, or if in any other proceeding the court
is of the opinion that justice cannot be fully done between the parties to
the proceeding without the discovery of the informer, it shall be lawful for
the court to require the production of the original complaint, if in writing,
and permit enquiry, and require full disclosure, concerning the informer.
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10I.
Authority to act. An Inspector when
acting under this Part shall on demand declare his office and produce to the
person against whom he is acting such written authorization as the Controller
may direct to be carried by such Inspector.
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10J.
Limitation on the powers of an Inspector.
No Inspector shall be entitled to exercise any of the
powers under this Part without prior written authorization from the Controller.
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PART V - POWERS OF MINISTER
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11. Powers of the Minister to give directions for the purpose of safeguarding
the interests of purchasers. (1) Where on his own volition a licensed
housing developer informs the Controller or where as a result of an investigation
made under section 10 or for any other reason the Controller is of the opinion
that the licensed housing developer becomes unable to meet his obligations
to his purchasers or is about to suspend his building operations or is carrying
on his business in a manner detrimental to the interests of his purchasers,
the Minister may without prejudice to the generality of the powers of the
Minister to give directions under section 12 for the purpose of safeguarding
the interests of the purchasers of the licensed housing developer -
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(a) direct the licensed housing developer in question to take
such steps as he may consider necessary to rectify any matter or circumstance;
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(b) direct that a person be appointed or himself appoint a person
to advise the licensed housing developer in the conduct of his business;
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(c) with the concurrence of the Minister of Finance direct a company
to assume control and carry on the business of the housing developer upon
such terms and conditions as the Minister may determine;
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(ca) certify that the licensed housing developer
has abandoned the housing development;
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(d) direct that the licensed housing developer present a petition
to the High Court for the winding up of his business; or
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(e) take such action as the Minister may consider necessary in
the circumstances of the case for carrying into effect the provisions of
this Act.
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(1A) In giving his direction or decision under paragraph
(1)(a), (b), (c) or (e), the Minister may specify that
any cost and expense reasonably incurred by such persons as may be specified
by the Minister in carrying out such direction or decision of the Minister
shall be paid from the Housing Development Account of the housing development
or from the moneys due to the Account. |
(2) Every such direction
of the Minister made under subsection (1) shall be binding on the licensed
housing developer and the purchasers. |
(3) Where a company
has, in pursuance of a direction of the Minister under paragraph (1) (c),
assumed control of and carried on the business of a licensed housing developer,
the following provisions shall apply - |
(a) the licensed housing developer in question shall submit his
business to the control of the company and shall provide the company with
such facilities as the Controller may consider necessary for the purpose
of carrying on the business of the licensed housing developer;
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(b) the company shall take over and become in control of and continue
to carry on the business of the licensed housing developer until such time
as the Minister may in writing otherwise direct; and
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(c) every such assumption and cessation of control of the business
of a licensed housing developer pursuant to a direction of the Minister
made under paragraph (1) (c) shall be published by the Controller
in the Gazette.
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12. Powers of the Minister to give general directions. The
Minister may give to a licensed housing developer such directions as he considers
fit and proper for the purpose, of ensuring compliance with this Act, and
any such direction shall be made in writing and shall be binding on the licensed
housing developer to whom the direction is made.
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13.
Revocation and suspension of a licence. If any licensed housing
developer -
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(a) is carrying on his business, in the opinion of the Controller,
in a manner detrimental to the interest of the purchasers or to any member
of the public;
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(b) has insufficient assets
to cover his liabilities; |
(c) is contravening any of the provisions of this Act; or
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(d) has ceased to carry
on housing development in West Malaysia, |
the Controller may subject to
the provisions of section 14 relating to the giving of opportunity of being
heard revoke the licence issued to the licensed housing developer or suspend
it for such period as the Controller may determine. |
13A. Controller to report the conduct of an architect or engineer.
Where the Controller is satisfied that the conduct of
an architect or engineer of a housing developer has prejudiced the interest
of the purchaser of the licensed housing developer, the Controller may report
such conduct of the architect or engineer to his respective professional body.
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13B.
Transfer or assignment of a licence.
No licence or any right to the licence issued to a housing
developer under this Act shall be transferred or assigned and any such transfer
or assignment shall be void.
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14. Opportunity of being heard to be afforded before revocation or suspension
of a licence and in certain other cases. Before revoking or suspending
a licence under section 13 or before varying, cancelling or altering any conditions
imposed on a licence or before imposing thereon any new or additional conditions
under subsection 5 (5), the Controller shall notify the housing developer
who is affected by the action proposed to be taken by the Controller of the
aforesaid proposed action and shall give the licensed housing developer an
opportunity to submit reasons or an explanation why the aforesaid proposed
action should not be carried out.
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15. Individual not eligible to take part in management of the business
of a licensed housing developer. (1) Without prejudice to anything
contained in any written law relating to companies, co-operative societies,
societies and partnerships, any person who acts or holds office of a director,
manager or secretary of a licensed housing developer or a similar office or
position shall cease to hold that office or position -
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(a) if he becomes bankrupt or suspends payment or compounds with
his creditors; or
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(b) if he is convicted of an offence involving dishonesty or fraud.
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(2) No person who has been a
director of, or been directly concerned in the management of, the business
of a licensed housing developer which has been wound up by a court shall,
without the approval in writing of the Minister, act or continue to act as
a director of, or be directly concerned in, the management of the business
of any licensed housing developer. |
16. Right of appeal to the Minister by an aggrieved licensed housing
developer against the decision of the Controller. An applicant applying
under subsection 5 (3) or a licensed housing developer, as the case may be,
who is aggrieved by the action or decision of the Controller -
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(a) in refusing to grant a licence to him under section 5;
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(b) in varying, altering or cancelling any conditions of his licence
or imposing thereon any new or additional conditions under subsection 5
(5);
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(c) in refusing to give approval to an arrangement or agreement
proposed to be entered into by a licensed housing developer under section
8, or in approving the same but subject to conditions being imposed thereon;
or
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(d) in revoking or suspending his licence under section 13,
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may, within fourteen
days after having been notified of the action or decision of the Controller
appeal against that action or decision to the Minister; and the decision of
the Minister made thereon shall be final and shall not be questioned in any
court. |
PART VI - TRIBUNAL FOR HOMEBUYER
CLAIMS
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16A.
Meaning of "homebuyer". For the purpose
of this Part, "homebuyer" means a purchaser and includes a person who
has subsequently purchased a housing accommodation from the first purchaser
of the housing accommodation.
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16B. Establishment of Tribunal for Homebuyer Claims.
A tribunal to be known as the "Tribunal for Homebuyer
Claims" is established.
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16C. Membership of
Tribunal. (1) The Tribunal shall consist
of the following members:
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(a) a Chairman and a Deputy Chairman to
be appointed by the Minister from amongst members of the Judicial and Legal
Service; and
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(b) not less than five other members to
be appointed by the Minister from amongst persons who are members of the
Judicial and Legal Service or advocates and solicitors of the High Court
in Malaya and have practised for not less than seven years.
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(2) The
members referred to in paragraph (1)(b)- |
(a) shall hold office for a term not exceeding
three years; and
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(b) shall be eligible for reappointment
upon the expiry of his term of office but shall not be appointed for more
than three consecutive terms.
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16D.
Temporary exercise of functions of Chairman.
Where the Chairman is for any reason unable to perform
his functions or during any period of vacancy in the office of the Chairman,
the Deputy Chairman shall perform the functions of the Chairman.
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16E.
Vacation of office. The office of a
member of the Tribunal shall become vacant-
(a) upon the death of the member;
(b) upon the member resigning from such office
by giving three months' written notice to the Minister;
(c) upon the expiry of his term of office;
or
(d) upon the member ceasing to be a member
of the Judicial and Legal Service or an advocate and solicitor of the High
Court in Malaya.
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16F. Revocation
of appointment. The Minister may revoke
the appointment of a member of the Tribunal appointed under paragraph 16C(1)(b)-
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(a)
if his conduct, whether in connection with his duties as a member of the Tribunal
or otherwise, has been such as to bring discredit to the Tribunal; |
(b) if he has become incapable of properly
carrying out his duties as a member of the Tribunal;
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(c)
if there has been proved against him, or he has been convicted on, a charge
in respect of- |
(i) an offence involving fraud, dishonesty or moral
turpitude;
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(ii) an offence under a law relating to corruption;
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(iii) an offence under this Act; or
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(iv) any other offence punishable with imprisonment
for more than two years;
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(d) if he is adjudicated a bankrupt;
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(e) if he has been found or declared to be
of unsound mind or has otherwise become incapable of managing his affairs;
or
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(f) if he absents himself from three consecutive
sittings of the Tribunal without leave of the Chairman.
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16G. Resignation.
A member of the Tribunal appointed under paragraph 16C(1)(b)
may at any time resign his office by giving three months' written notice to
the Minister.
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16H.
Filling of vacancy. Where a member
ceases to be a member of the Tribunal, the Minister may appoint another person
to fill the vacancy.
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16I. Remuneration.
(1) The members of the Tribunal appointed under paragraph
16C(1)(a) shall be paid such fixed allowances and other allowances
as the Minister may determine.
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(2) The members of the Tribunal appointed under paragraph
16C(1)(b) shall be paid-
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(a) a daily sitting allowance during the
sitting of the Tribunal; and
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(b) such lodging, travelling and subsistence
allowances,
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as the
Minister may determine. |
(3) The remuneration provided for in subsections
(1) and (2) shall be charged on the Consolidated Fund.
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16J.
Secretary to Tribunal and other officers.
(1) There shall be appointed a Secretary to the Tribunal
and such number of officers as may be necessary for carrying out the functions
of the Tribunal.
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(2) The
Chairman shall have general control of the officers of the Tribunal. |
(3) For the purposes of this Act, the Secretary to
the Tribunal shall be deemed to be an officer of the Tribunal.
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16K. Sittings of Tribunal.
(1) The jurisdiction of the Tribunal shall be exercised
by any of the following persons sitting alone:
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(a) the Chairman of the Tribunal;
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(b) the Deputy Chairman of the Tribunal;
or
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(c) any member of the Tribunal determined
by the Chairman.
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(2) The
Tribunal may sit in one or more sittings on such day and at such time and
place as the Chairman may determine. |
(3) If
the person presiding over any proceedings in respect of a claim dies or becomes
incapacitated, or is for any other reason unable to complete or dispose of
the proceedings, the claim shall be heard afresh by another member of the
Tribunal, unless the parties agree that the claim be continued by another
member of the Tribunal. |
(4) Where
the term of appointment of any member of the Tribunal under this section expires
during the pendency of any proceedings in respect of a claim, the term of
his appointment shall be deemed to be extended until the final disposal of
the claim. |
16L. Commencement
of proceedings. A homebuyer may lodge
with the Tribunal a claim in the prescribed form together with the prescribed
fee claiming for any loss suffered or any matter concerning his interests
as a homebuyer under this Act.
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16M. Jurisdiction
of Tribunal. (1) Subject to sections
16N and 16O, the Tribunal shall have jurisdiction to determine a claim lodged
under section 16L where the total amount in respect of which an award of the
Tribunal is sought does not exceed twenty-five thousand ringgit.
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(2) Subject
to subsection (1), a respondent to a claim may raise a debt or liquidated
demand as- |
(a) a defence; or
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(b) a counter-claim.
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(3) Where
a respondent raises a debt or liquidated demand under subsection (2) and the
debt or demand is proved the Tribunal shall- |
(a) give effect to the defence; or
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(b) hear and determine the counter-claim
notwithstanding that the original claim is withdrawn, abandoned or struck
out.
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(4) Any
claim lodged with the Tribunal may include loss or damage of a consequential
nature. |
16N. Limitation
of jurisdiction. (1) Except as expressly
provided under this Act, the Tribunal shall have no jurisdiction in respect
of any claim-
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(a) for the recovery of land, or any estate
or interest in land; and
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(b) in which there is a dispute concerning-
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(i) the entitlement of any person under a will
or settlement, or on intestacy (including partial intestacy);
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(ii) goodwill;
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(iii) any chose in action; or
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(iv) any trade secret or other intellectual property
right.
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(2) The
jurisdiction of the Tribunal shall be limited to a claim that is based on
a cause of action arising from the sale and purchase agreement entered into
between the homebuyer and the licensed housing developer which is brought
by a homebuyer not later than twelve months from the date of issuance of the
certificate of fitness for occupation for the housing accommodation or the
expiry date of the defects liability period as set out in the sale and purchase
agreement. |
(3) Notwithstanding subsection (2) no claim shall
be affected or defeated on the ground that no sale and purchase agreement
has been entered into between the homebuyer and the licensed housing developer
at the time when the cause of action accrues if there exists a previous dealing
between the homebuyer and the licensed housing developer in respect of the
acquisition of the housing accommodation.
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(4) Nothing
in this section shall be deemed to authorize the Tribunal to deal with a claim
arising from personal injury or death. |
(5) For the purposes of subsection (1), "land" does
not include fixtures.
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16O.
Extension of jurisdiction by agreement.
(1) Notwithstanding that the amount or value of the
subject-matter claimed or in issue exceeds twenty-five thousand ringgit, the
Tribunal shall have jurisdiction to hear and determine the claim if the parties
have entered into an agreement in writing that the Tribunal shall have jurisdiction
to hear and determine the claim.
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(2) An
agreement may be made under subsection (1)- |
(a) before a claim is lodged under section
16L; or
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(b) where a claim has been lodged under
section 16L, at any time before the Tribunal has recorded an agreed settlement
in respect of the claim under subsection 16T(3) or has determined the claim
under section 16y, as the case may be.
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16P. Abandonment to bring claim within jurisdiction.
(1) A claimant may abandon so much of a claim as exceeds
twenty-five thousand ringgit in order to bring the claim within the jurisdiction
of the Tribunal.
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(2) Where
a part of a claim has been abandoned under subsection (1), the Tribunal's
record of an agreed settlement under subsection 16T(3) or the Tribunal's award
under section 16Y, as the case may be, in relation to the claim shall operate
to discharge the person- |
(a) who is a party to that agreed settlement;
or
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(b) against whom the claim is brought and
the subsequent award is made,
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from liability in respect of the amount so abandoned.
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16Q. Cause
of action not to be split. Claims may
not be split, nor more than one claim brought, in respect of the same matter
against the same party for the purpose of bringing it within the jurisdiction
of the Tribunal.
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16R. Exclusion
of jurisdiction of court. (1) Where
a claim is lodged with the Tribunal and the claim is within the Tribunal's
jurisdiction, the issues in dispute in that claim, whether as shown in the
initial claim or as emerging in the course of the hearing, shall not be the
subject of proceedings between the same parties in any court unless-
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(a) the proceedings before the court were
commenced before the claim was lodged with the Tribunal; or
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(b) the claim before the Tribunal is withdrawn,
abandoned or struck out.
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(2) Where
paragraph (1)(a) applies, the issues in dispute in the claim to which
those proceedings relate, whether as shown in the initial claim or emerging
in the course of the hearing, shall not be the subject of proceedings between
the same parties before the Tribunal unless the claim before the court is
withdrawn, abandoned or struck out. |
16S. Notice of
claim and hearing. Upon a claim being
lodged under section 16L, the Secretary to the Tribunal shall give notice
of the details of the day, time and place of hearing in the prescribed form
to the claimant and the respondent.
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16T. Negotiation
for settlement. (1) The Tribunal shall,
as regards every claim within its jurisdiction, assess whether, in all the
circumstances, it is appropriate for the Tribunal to assist the parties to
negotiate an agreed settlement in relation to the claim.
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(2) Without
limiting the generality of subsection (1), in making an assessment the Tribunal
shall have regard to any factors that, in the opinion of the Tribunal, are
likely to impair the ability of either or both of the parties to negotiate
an agreed settlement. |
(3) Where
the parties reach an agreed settlement, the Tribunal shall approve and record
the settlement and the settlement shall then take effect as if it were an
award of the Tribunal. |
(4) Where- |
(a) it appears to the Tribunal that it would
not be appropriate for it to assist the parties to negotiate an agreed settlement
in relation to the claim; or
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(b) the parties are unable to reach an agreed
settlement in relation to the claim,
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the Tribunal
shall proceed to determine the dispute. |
16U. Right to
appear at hearings. (1) At the hearing
of a claim every party shall be entitled to attend and be heard.
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(2) No
party shall be represented by an advocate and solicitor at a hearing unless
in the opinion of the Tribunal the matter in question involves complex issues
of law and one party will suffer severe financial hardship if he is not represented
by an advocate and solicitor; but if one party is subsequently allowed to
be represented by an advocate and solicitor then the other party shall also
be so entitled. |
(3) Subject to subsection (2) but notwithstanding
section 37 of the Legal Profession Act 1976 [Act 166]-
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(a) a corporation or an unincorporated body
of persons may be represented by a full-time paid employee of the corporation
or body;
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(b) a minor or any other person under a
disability may be represented by his next friend or guardian ad item.
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(4) Where
a party is represented as permitted under subsection (3), the Tribunal may
impose such conditions as it considers necessary to ensure that the other
party to the proceedings is not substantially disadvantaged. |
16V. Proceedings
to be public. All proceedings before
the Tribunal shall be open to the public.
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16W. Evidence.
(1) The Tribunal may-
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(a) procure and receive all such evidence
on oath or affirmation, whether written or oral, and examine all such persons
as witnesses, as the Tribunal thinks necessary to procure, receive or examine;
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(b) require the production before it of
books, papers, documents, records and things;
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(c) administer such oath, affirmation or
statutory declaration as the case may require;
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(d) seek and receive such other evidence
and make such other inquiries as it thinks fit;
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(e) summon the parties to the proceedings
or any other person to attend before it to give evidence or to produce any
document, records or other thing in his possession or otherwise to assist
the Tribunal in its deliberations;
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(f) receive expert evidence; and
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(g) generally direct and do all such things
as may be necessary or expedient for the expeditious determination of the
claim.
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(2) A summons
issued under this section shall be served and enforced as if it were a summons
issued by a subordinate court. |
16X.
Tribunal may act in absence of party.
The Tribunal may hear and determine the claim before
it notwithstanding the absence of any party to the proceedings if it is proved
to the satisfaction of the Tribunal that a notice of the hearing has been
duly served on the absent party.
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16Y. Awards of the
Tribunal. (1) The Tribunal shall make
its award without delay and, where practicable, within sixty days from the
first day the hearing before the Tribunal commences.
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(2) An
award of the Tribunal under subsection (1) may require one or more of the
following: |
(a) that a party to the proceedings pay money
to any other party;
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(b) that the price or other consideration
paid by the homebuyer or any other person be refunded to the homebuyer or
that person;
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(c) that a party comply with the sale and
purchase agreement;
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(d) that money be awarded to compensate
for any loss or damage suffered by the claimant;
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(e) that the contract be varied or set aside,
wholly or in part;
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(f) that costs to or against any party be
paid;
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(g) that interest be paid on any sum or
monetary award at a rate not exceeding eight per centum per annum, unless
it has been otherwise agreed between the parties;
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(h) that the claim is dismissed.
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(3) Nothing
in paragraph (2)(d) or (e) shall be deemed to empower the Tribunal
to award any damages for any non-pecuniary loss or damage. |
16Z. Reference to a Judge of the High Court on a question of law.
(1) Before the Tribunal makes an award under section
16Y, it may, in its discretion, refer to a Judge of the High Court a question
of law-
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(a) which arose in the course of the proceedings;
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(b) which, in the opinion of the Tribunal,
is of sufficient importance to merit such reference; and
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(c) the determination of which by the Tribunal
raises, in the opinion of the Tribunal, sufficient doubt to merit such reference.
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(2) If the Tribunal refers any question of law under
subsection (1) for the decision of a Judge of the High Court, it shall make
its award in conformity with such decision.
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(3) A Federal
Counsel authorized by the Attorney General for the purpose may appear on behalf
of the Tribunal in any proceedings before a Judge of the High Court under
this section. |
16AA. Reasons for decision. The
Tribunal shall in all proceedings give its reasons for its award in the proceedings.
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16AB. Orders and settlement to be recorded in writing.
The Tribunal shall make or cause to be made a written
record of the terms of-
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(a) every agreed settlement reached by the
parties under subsection 16T(3); and
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(b) every award made by it under section
16Y.
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16AC.
Decisions of Tribunal to be final.
(1) Every agreed settlement recorded by the Tribunal under subsection 16T
(3) and every award made by the Tribunal under section 16Y-
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(a) shall be final and binding on all parties
to the proceedings; and
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(b) shall be deemed to be an order of a
Magistrate's Court and be enforced accordingly by any party to the proceedings;
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(2) For
the purpose of paragraph (1)(b), the Secretary to the Tribunal shall
send a copy of the award made by the Tribunal to the Magistrate's Court having
jurisdiction in the place to which the award relates or in the place where
the award was made and the Court shall cause the copy to be recorded. |
16AD.
Criminal penalty for failure to comply.
(1) Any person who fails to comply with an award made
by the Tribunal within the period specified therein commits an offence and
shall on conviction be liable to a fine not exceeding five thousand ringgit
or to imprisonment for a term not exceeding two years or to both.
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(2) In
the case of a continuing offence, the offender shall, in addition to the penalties
under subsection (1), be liable to a fine not exceeding one thousand ringgit
for each day or part of a day during which the offence continues after conviction. |
16AE.
Procedure where no provision is made.
Subject to this Act and to any regulations, the Tribunal
shall adopt such procedure as it thinks fit and proper.
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16AF.
Want of form. No proceedings of the
Tribunal or award or other document of the Tribunal shall be set aside or
quashed for want of form.
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16AG. Disposal
of documents, etc. (1) The Tribunal
may, at the conclusion of the proceedings before it, order that any document,
record, material or other property produced during the proceedings be delivered
to the rightful owner or be disposed of in such manner as it thinks fit.
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(2) Where
no person has taken delivery of the document, record, material or other property
referred to in subsection (1) after a period of six months, the ownership
in the document, record, material or other property shall be deemed to have
passed to and become vested in the Government. |
16AH.
Act or omission done in good faith.
No action or suit shall be instituted or maintained
in any court against-
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(a) the Tribunal;
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(b) a member of the Tribunal; or
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(c) a person authorized to act for or on
behalf of the Tribunal,
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for any
act or omission done in good faith in the performance of its or his functions
and the exercise of its or his powers under this Act. |
16AI.
Regulations in respect of the Tribunal.
(1) The Minister may make such regulations as may be
necessary or expedient in respect of the Tribunal.
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(2) Without prejudice to the generality of subsection
(1), regulations may be made for- |
(a) prescribing the responsibilities of
members of the Tribunal;
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(b) prescribing the procedure of the Tribunal;
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(c) prescribing the forms to be used in
proceedings under this Part;
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(d) prescribing and imposing fees and providing
for the manner for collecting and disbursing such fees;
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(e) prescribing anything required to be
prescribed under this Part.
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PART VII - MISCELLANEOUS
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17. Indemnity and protection against suit and proceedings.
No action shall lie against the Government, the Minister, the Controller,
Inspector or against any officer of the Government or any person acting under
the direction of the Minister, the Controller or Inspector for damages in
any civil court for anything bona fide done, ordered or omitted to
be done pursuant to this Act; and all actions which may lawfully be brought
in respect of anything done, ordered or omitted to be done pursuant to this
Act shall be instituted within six months from the date of the act or omission
complained of, and not afterwards.
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18.
Offences relating to a licence under section 5. Any housing developer
who -
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(a) in contravention of
subsection 5(1) engages in, carries out, or undertakes housing development
without having been duly licensed under that section; |
(b) in contravention of subsection 5 (2) assumes or uses in relation
to his business or any part of his business the words "housing developer"
or any of the derivatives or any other word or words indicating the carrying
on of the business of housing development; or
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(c) fails to comply with any of the conditions imposed on the
licence granted under section 5,
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shall be guilty of an offence
and shall, on conviction, be liable to a fine which shall not be less than
fifty thousand ringgit but which shall not exceed
five hundred thousand ringgit or to imprisonment
for a term not exceeding five years or to both. |
19. Offences
by a housing developer. Any housing developer who -
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(a) in contravention of
any of the provisions of section 7 fails to perform any of the duties imposed
by that section; |
(aa) enters into an arrangement
or agreement in contravention of section 8 or fails to comply with any condition
imposed pursuant to subsection (2) of that section; |
(b)
(Deleted by
Act A1142) |
(c) after the Minister
has, pursuant to paragraph 11 (1) (c), directed a company to assume
control of and carry on the business of the housing developer, in contravention
of subsection 11 (3) fails to submit his business to the control of that company
or fails to provide the company with such facilities as the Controller may
consider necessary for the purpose of carrying on the business of the licensed
housing developer; |
(cc) fails to comply with any direction given by the Minister under
paragraph 11(1) (a), (b), (d) or (e); or
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(d) in contravention of
section 12, fails to comply with any direction given by the Minister under
that section, |
shall be guilty of an offence
and shall, on conviction, be liable to a fine not exceeding fifty thousand
ringgit or to imprisonment for a term not exceeding three years or to both
and shall also be liable to a further fine not exceeding
five hundred ringgit for every day during which the offence is continued after
the conviction. |
20. Offences by a director of or a person connected with the business
of a licensed housing developer in certain cases. Any person who
-
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(a) in contravention of subsection 15 (1) continues to act as
or hold office of a director, manager or secretary of a licensed housing
developer or any similar office or position in the employ of the licensed
housing developer notwithstanding that he has become bankrupt or suspended
payment to or compounded with his creditors or is convicted of an offence
involving fraud or dishonesty; or
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(b) in contravention of subsection 15 (2) acts as or holds or
continues to act as or hold office of a director or is directly concerned
in the management of the business of any licensed housing developer without
the approval in writing of the Minister after the business of that licensed
housing developer has been wound up by a court,
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shall be guilty of an offence
and shall, on conviction, be liable to imprisonment for a term which shall
not be less than twelve months but which shall not exceed three years and
shall also be liable to a fine not exceeding fifty
thousand ringgit. |
21. Penalty for offences not otherwise provided for. Any housing
developer guilty of an offence against this Act for which no penalty is expressly
provided shall, on conviction, be liable to a fine not exceeding
fifty thousand ringgit or to imprisonment for
a term not exceeding three years or to both.
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22. Liability of director, manager and other officials for offences
(1) Where any offence against any provision of this Act has been committed
by a housing developer, any person who at the time of the commission of the
offence was a director, manager or secretary or holds any similar office or
position or was an agent, clerk or servant of the housing developer shall
be deemed to be guilty of that offence, unless he proves that the offence
was committed without his consent or connivance and that he exercised all
such diligence to prevent the commission of the offence as he ought to have
exercised, having regard to the nature of his functions in that capacity and
to all the circumstances, and shall, on conviction, be liable to imprisonment
for a term which shall not be less than twelve months but which shall not
exceed three years and shall also be liable to a fine not exceeding
fifty thousand ringgit.
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(2) Any person liable under this
Act to any punishment or penalty for any act or omission shall be liable to
the same punishment or penalty for any such act or omission by - |
(a) his partner;
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(b) his agent acting on his behalf;
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(c) his clerk or servant acting in the course of his employment;
or
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(d) the clerk or servant of his partner or agent acting in the
course of employment in circumstances that had the act or omission been
committed by the partner or agent the aforesaid person would have been liable
under this subsection:
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Provided that nothing herein
shall relieve the partner, agent, clerk or servant or the clerk or servant
of that partner or agent from liability to prosecution. |
22A.
Public servants and public officers.
The Controller, every Deputy Controller, every Inspector
and all members and officers of the Tribunal shall be deemed to be public
servants for the purposes of the Penal Code [Act 574], and to be public
officers for the purposes of the Criminal Procedure Code or any other written
law which the Minister may from time to time prescribe.
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22B. Application of Public Authorities Protection Act 1948.
The Public Authorities Protection Act 1948 [Act 198]
shall apply to any action, suit, prosecution or proceedings against the Minister,
Controller, any Deputy Controller, any Inspector, the Tribunal or any member
or officer of the Tribunal in respect of any act, neglect or default done
or committed by him in such capacity.
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22C.
Right to initiate and maintain actions.
Notwithstanding anything contained in any written law
or any rule of law, a homebuyer as defined in section 16A shall be entitled
on his own volition and in his own name to initiate, commence, institute and
maintain in any court or tribunal any action, suit or proceeding against a
housing developer or any other person in respect of any matter arising out
of the sale and purchase agreement entered into between the purchaser and
that housing developer unless a contrary intention is expressed in any agreement,
assignment or charge between the homebuyer and his financier in which case
the prior written consent of his financier must first be obtained before he
exercises any of his rights under this section.
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23. Prosecution. No
prosecution for any offence under this Act shall be instituted save by or
under the direction of or with the consent of the Public Prosecutor.
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23A.
Power to compound. (1) The Controller
may compound any offence against this Act or any regulations made under this
Act which has been prescribed under paragraph 24(2)(i) to be a compoundable
offence by collecting from the person reasonably suspected of having committed
the offence a sum of money not exceeding the maximum fine prescribed for that
offence.
(2) Where an offence has been compounded under subsection
(1), no prosecution shall thereafter be instituted in respect of the compounded
offence.(3) Any moneys paid to the Controller
under this section shall be paid into and form part of the Consolidated Fund.".
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24. Powers to make
regulations. (1) Subject to this section, the Minister may make
regulations for the purpose of carrying into effect the provisions of this
Act.
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(2) In particular and without prejudice to the generality of the foregoing
power, the regulations may -
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(a) regulate the advertisement of a licensed housing developer;
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(b) regulate the use of names of housing estates developed by
a licensed housing developer;
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(c) prescribe the form or forms of contracts which shall be used
by a licensed housing developer, his agent, nominee or purchaser both as
a condition of the grant of a licence under this Act or otherwise;
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(d) regulate payments (under whatever name these may be described)
which may be made by a purchaser either before, during or after the construction
of the house, flat or other accommodation for which that purchaser is required
to make the payments, including the amount of the payments, the time when
the payments become due and conditions that shall be fulfilled by a licensed
housing developer before he may ask for the payments;
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(e) regulate and prohibit the conditions and terms of any contract
between a licensed housing developer, his agent or nominee and his purchaser;
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(f) prescribe the fees which are payable
under this Act;
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(g) prescribe that any act or omission in contravention of any
of the regulations shall be an offence and provide for the penalties therefor
either by way of fine or imprisonment or both: provided that any fine so
provided shall not exceed five thousand ringgit and a term of imprisonment
so provided shall not exceed three years, and in addition thereto may also
provide for the cancellation and suspension of a licence issued under this
Act;
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(h) prescribe the monies which shall be paid into or withdrawn
from the Housing Development Account and the conditions for such withdrawals;
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(i) prescribe offences which may be compounded
and the forms to be used in and the method and the procedure for compounding
such offences; and
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(j) provide for any matter which under this
Act is required or permitted to be prescribed or which is necessary or expedient
to be prescribed to give effect to this Act.
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(3) A copy of all
regulations made under this section shall be published in the Gazette
and laid before each House of Parliament as soon as possible after they have
been made. |
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