Deputy Minister welcomes Kuching High Court’s decision on Liquidated Ascertained Damages

Michael Tiang

SIBU (March 25): Deputy Minister for Public Health, Housing and Local Government II Michael Tiang welcomes Kuching High Court’s decision that ruled Liquidated Ascertained Damages (LAD) for late delivery of properties in Sarawak only starts from the signing of Sales & Purchase Agreement (SPA), and not from the date of booking.

He said the decision has come at the right time and has cleared the air of confusion among the developers and house purchasers in Sarawak.

“The High Court’s decision is important as since the last Federal Court’s decision, the said decision from the apex court has caused huge concerns among the developers in Sarawak.

“Today’s High Court decision rightly interprets Sarawak ordinance that the relevant provisions on the subject matter are not the same as the laws in Peninsular Malaysia,” he said.

Tiang, who is also Pelawan assemblyman, said the Federal Court in West Malaysia had ruled that LAD starts when the house or apartment buyers paid for the booking fee.

He said the High Court decision clarified that the booking is not a commitment or a contract.

Instead, it is only an option for the buyers to developers that they are interested in buying the properties.

“The real contract starts when the buyers sign the sales and purchases agreement,” he said.

Meanwhile, RJ Realty Sdn Bhd had applied for a judicial review in the Kuching High Court for cases where the Sarawak Housing Tribunal have been following the Federal Court’s decision in PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah & Anor and Other Appeals in awarding LAD for late delivery of properties from the date of booking.

Yesterday, the Kuching High Court ruled that the Federal Court’s decision on the PJD Regency Sdn Bhd case is not applicable to Sarawak and Sabah.

High Court Judicial Commissioner Alexander Siew How Wai ruled that PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah & Anor and Other Appeals were decided under West Malaysian Housing Development (Control and Licensing) Act 1966 and Regulations, which is not applicable in Sarawak.

He said though there are similarities in the wordings, the Sarawak Housing Development (Control & Licensing) Ordinance 2013 is not in pari materia (on the same subject matter) with the West Malaysian Housing Act.

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