{"id":4708,"date":"2023-03-14T20:07:38","date_gmt":"2023-03-14T12:07:38","guid":{"rendered":"https:\/\/yhalaw.com.my\/?p=4708"},"modified":"2024-09-09T09:11:33","modified_gmt":"2024-09-09T01:11:33","slug":"property-law-delivery-of-vacant-possession-validity-of-the-extension-of-time-lad","status":"publish","type":"post","link":"https:\/\/yhalaw.com.my\/zh\/property-law-delivery-of-vacant-possession-validity-of-the-extension-of-time-lad\/","title":{"rendered":"PROPERTY LAW \u2013 DELIVERY OF VACANT POSSESSION &#8211; VALIDITY OF THE EXTENSION OF TIME \u2013 LAD"},"content":{"rendered":"\n<p>A, a purchaser has entered into a sales and purchase agreement <strong>(\u201cSPA\u201d)<\/strong> with B, a developer. Due to the fact that developer B could not deliver vacant possession on time, developer B had obtained an extension of time from the Housing Controller <strong>(\u201cthe Controller\u201d)<\/strong>. As a result, the house was clearly not delivered on the stipulated date and A wanted to claim for liquidated ascertained damages <strong>(\u201cLAD\u201d)<\/strong> over delayed completion of the property purchased. He also sought to challenge the validity of the extension of time granted by the Controller.<\/p>\n\n\n\n<p>Q: When does the LAD start?<\/p>\n\n\n\n<p>A: The Federal Court decision in <strong><em><u>PJD Regency Sdn Bhd<\/u><\/em><\/strong> says the date for the calculation of the LAD starts from the date booking fee was paid. Not from the date of the SPA was signed. However in <strong><em><u>Toh Ai Shi<\/u><\/em><\/strong> the court distinguished <strong><em><u>PJD Regency Sdn Bhd<\/u><\/em><\/strong>. The court note that there was no booking fee paid but only payment of \u201cstakeholder sum\u201d to the lawyer. So, LAD starts from the date the SPA was signed.<\/p>\n\n\n\n<p>Q: Can A challenge the extension of time granted by the Controller?<\/p>\n\n\n\n<p>A: Yes. In <strong><em><u>Toh Ai Shi<\/u><\/em><\/strong> the court observed that A should challenge the Controller\u2019s extension of time by way of judicial review. This is because according to <strong><em><u>Ang Ming Lee<\/u><\/em><\/strong> and <strong><em><u>Alvin Leong<\/u><\/em><\/strong><em> (See our earlier legal updates)<\/em>, the Controller does not have power to extend time for delivery of vacant possession.<\/p>\n\n\n\n<p>Q: Can developer B rely on Regulation 11(3) of the Housing Development (Control and Licensing) Regulations 1989 <strong>(\u201cHDR 1989\u201d) <\/strong>to argue that the extension is valid?<\/p>\n\n\n\n<p>A: No, <strong><em><u>Ang Ming Lee<\/u><\/em><\/strong> and <strong><em><u>Alvin Leong<\/u><\/em><\/strong> held that Regulation 11(3) HDR 1989 allows Minister to give extension of time. However, Controller does not have such power.<\/p>\n\n\n\n<p>Q: What can A do if A wants to challenge the validity of the extension of time?<\/p>\n\n\n\n<p>A: A shall file by way of judicial review application to the High Court to nullify the extension of time by the Controller first. Then can A claim LAD against developer B. In the latest decision of the High Court in <strong><em><u>Toh Ai Shi<\/u><\/em><\/strong>, the Plaintiff\u2019s action was dismissed because he filed an Originating Summons against the developer and did not name the Controller as a party. However, it must be kept in mind, judicial review application has to be made within 90 days from the date the decision is made.<\/p>\n\n\n\n<p>Cases in point:<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li><strong><em><u>PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah &amp; Anor And Other Appeals [2021] MLRAU 8<\/u><\/em><\/strong><\/li>\n\n\n\n<li><strong><em><u>Toh Ai Shi v Talent Team Sdn Bhd &amp; Anor [2023] 7 MLJ 262<\/u><\/em><\/strong><\/li>\n\n\n\n<li><strong><em><u>Ang Ming Lee &amp; Ors v Menteri Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan &amp; Anor And Others Appeals [2019] 6 MLRA 494<\/u><\/em><\/strong><\/li>\n\n\n\n<li><strong><em><u>Alvin Leong Wai Kuan v Menteri Kesejahteraan Bandar [2020] 6 MLJ 191<\/u><\/em><\/strong><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>When does the LAD start to commence? On what grounds the Housing Controller\u2019s decision to extend the time for vacant possession can be disputed?  Judicial Review Application<\/p>","protected":false},"author":1,"featured_media":4710,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1567],"tags":[2702],"class_list":["post-4708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-law","tag-property-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>PROPERTY LAW \u2013 DELIVERY OF VACANT POSSESSION - VALIDITY OF THE EXTENSION OF TIME \u2013 LAD | Yew Huoi, How &amp; Associates | Leading Malaysia Law Firm<\/title>\n<meta name=\"description\" content=\"When does the LAD start to commence? On what grounds the Housing Controller\u2019s decision to extend the time for vacant possession can be disputed? 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