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Developer ordered to pay for late delivery
The Star 11/08/1999
Kuantan: The High Court yesterday ordered a housing developer to pay 19 purchasers late delivery charges
amounting to more than RM1mil, to complete the construction of their apartments at Sunny Beach Resort in Sungai Karang and to deliver them.
Justice Tengku Badaruddin Tengku Mahmud made the order in his chambers after hearing arguments on an application
for damages for late delivery sought by the purchasers against housing developer Everworth Sdn. Bhd.
Justice Tengku Badaruddin ordered that the late delivery charges, which are only to be confined to the said 19
units, be calculated as August last year.
On Jan 13, the 19 purchasers - Ho Sew Choong, Chin Yin Set, Lim Theam Chuan, Mohd Ghazi Abdul Aziz,
Chong Wai Poh, Wong Yok Moi, Tan Soo Pong, Yin Yock Lin, Leng Kwan Fong, Wong Siew Heng, Hilgert Rainer Alfred Heinrich, Shirley Khor, Tay Yun Yu,
B.S. Huat Plywood Trading Sdn Bhd, Ong Lay Men, Sinjet Seng Development, Chong Kim Sang, Lim Lian Hoo and Biturn Enterprise Sdn Bhd - filed a
petition naming Everworth as the respondent.
The project, called Sunny Beach Resort, was supposed to be completed in 1995 but was abandoned in 1996 after
being 80% completed.
All 19 had paid more than RM100,000 as progress payments to Everworth.
However, on Feb 11 their petition was dismissed by Justice Abu Samah Nordin on grounds that the purchasers did
not have locus standi to present the petition and had failed to observe the technical requirements of the Company Winding-up Rules.
On March 15, the purchasers obtained a judgement-in-default against the developer for the sum of RM1.2mil in
respect of liquidated damages for late delivery of vacant possession as of Aug 31, 1998.
The developer refused to settle the purchaser's claims for liquidated damages and instead threatened to
terminate the S&P agreement if the balance of the purchase price is not paid.
On July 6, the purchasers obtained an ex-parte mareva injunction against the developer and financial
institutions freezing any dealings on the balance purchase price.
On the same day, the developer make an undertaking not to terminate the S&P agreement but went ahead and
terminated the agreement on July 21.
The purchasers then filed a notice of motion for leave to cite the managing director of the company, Sam
Elshekin, for contempt of court in breach of the undertaking.
Elsheking apologised to the court yesterday, which accepted his apology. |
