Victory for housebuyers

19/12/2002 The Sun By Maria J. Dass and Ng Kee Seng

Petaling Jaya: The Appeals Court yesterday confirmed  the fundamental power of the Housing Tribunal to hear cases retrospectively, bringing cheer to more than 2,000 affected housebuyers.

In a brief verbal decision, the court also affirmed the awards earlier granted by the tribunal in such cases.

This overturns the Sept 4 High Court ruling that the tribunal cannot hear cases involving sale and purchase agreements signed before Dec 1 last year.

The ruling affected 2,209 or 95% of the cases filed with the tribunal including 438 that had been settled up to July 3. It caused an uproar among housebuyers, especially when awards totalling RM2.4 million in the settled cases were declared null and void.

In an immediate response to that decision, Housing and Local Government Minister Datuk Seri Ong Ka Ting said he had contacted  the Attorney-General Tan Sri Abdul Gani Patail who decided to argue the case for the government before a higher court.

Yesterday, Court of Appeal judges Datuk Richard Malanjun, Datuk Hisham Yusof and Tengku Datuk Baharudding Shah Tengku Mahmud gave a verbal judgement in Putrajaya.

A lawyer representing the House Buyers Association (HBA) said the decision supports the tribunal based on Section 16M and N of the Housing Development (Control and Licensing) (Amendment) Act 2002. The grounds for the decision and detailed reasons for the judgement will be given in writing soon, she said.

Ong told thesun the tribunal can now resume its task immediately.

"We are very happy with the outcome of the appeal which is in line with  our original intention to protect housebuyers' interest.

"I urge all developers to adhere strictly to their contractual obligations to housebuyers as stipulated in sale and purchase agreements," he added.

HBA secretary-general Chang Kim Loong said the successful appeal against the High Court decision is a progressive step towards the successful implementation of the Housing Tribunal.

"The decision could not have been more timely as housebuyer's sentiment is on the mend towards adequate protection for them. For too long the ordinary housebuyer who cannot afford legal representation in lengthy court cases have been forced into submission," he said.

Under the Act, housebuyers can haul errant developers to the tribunal for a maximum claim of RM25,000. Developers or housebuyers (who receive counter claims) who fail to settle the award are liable to maximum fine of RM5,000 and maximum jail term of two years.