Developer Gets Charged in Court for False Representation
107 condominium buyers in Kuala Lumpur suffered losses after the developer of the condominium, known as "The Meridin @ Medini in Johor Bahru”, breached the Housing Development (Control and Licensing) Regulations 1989. Yesterday, the High Court allowed for a civil suit against the defendant.
The trial judge of the case, Judge Datuk Mohd Sofian Abd Razak found that the defendant, Tropika Istimewa Development Sdn Bhd had misrepresented to the plaintiffs (107 buyers) that they were entering in a Sales and Purchase Agreement (SPA) to purchase the property and not the purchase of the lease.
As a result of the false representation or misrepresentation by the defendant, the plaintiffs had incurred losses and damages which the defendant is liable to pay to the plaintiffs.
“Based on the reasons elaborated, the court is satisfied that the plaintiffs have proven their claims against the defendant. Therefore, the court allowed the claim with RM30,000 costs,” he said.
Justice Mohd Sofian who is currently a Court of Appeal Judge also granted a declaration sought by the plaintiffs that the sales and purchase agreement is invalid and contravened of the Housing Development (Control and Licensing) Act 1966, the Housing Development (Control and Licensing) Regulations 1989, the National Land Code 1965 and Strata Titles Act 1985.
Justice Mohd Sofian allowed the plaintiffs’ relief that the defendant is required to comply and shall be bound by the terms and conditions as prescribed in Schedule H of the Housing Development (Control and Licensing) Regulations 1989.
He also granted an order that the defendant shall pay the plaintiffs’ damages to be assessed by the court and order that defendant shall pay the plaintiffs Liquidated Ascertained Damages (LAD) for the late delivery of vacant possession.