Developer ordered to pay RM1.6m to house buyer

30/04/2005 The Malay Mail

KUALA LUMPUR: The High Court yesterday awarded 136 house buyers damages amounting to RM1.6 million as interim payment for failure by the developer to provide vacant possession within 36 months as stipulated in the contract.

Justice Datuk James Foong made the order in chambers.

Harwinder Kaur, counsel for the house buyers, when met by reporters outside the court, said Foong granted an application for an interim payment for liquidated damages amounting to RM1,652,375 to 136 house buyers at Desa Pakar in Jalan Sungai Besi.

On Nov 2002, the 136 housebuyers filed an application for an interim payment amounting to RM1.9 million, including the amount for the common facilities. The buyers of low- and medium-cost houses worth between RM25,000 and RM200,000 each named housing developer Langkah Cergas Sdn Bhd as defendant in their application.

They claimed that Langkah Cergas had breached the housing and commercial sale and purchase agreements by failing to deliver vacant possession of the properties with water and electricity supply duly
connected within 36 months of the date of executing the agreements that they signed in 1993.  Bernama