Apex court dismisses leave bid – COA's decision on minister's right to grant 17-month EOT stays

• On Jan 3, 2020, the High Court allowed the purchasers' judicial review application and quashed the minister's decision to allow EOT of 17 months to deliver vacant possession.

PUTRAJAYA (Jan 5): A group of purchasers of serviced apartment units failed to obtain leave to pursue their appeal in the Federal Court against a Court of Appeal (COA)'s ruling that the Minister of Urban Well-being, Housing and Local Government has the power to grant extension of time (EOT) to a housing developer to deliver vacant possession.

On Jan 4, Federal Court three-member bench comprising Chief Judge of Sabah and Sarawak Tan Sri Abang Iskandar Abang Hashim and Federal Court judges Datuk Rhodzariah Bujang and Datuk Mohamad Zabidin Mohd Diah dismissed the purchasers' application to get leave to appeal.

Senior federal counsel Liew Horng Bin, representing the Minister of Urban Well-being, Housing and Local Government and the Housing controller at the ministry, when contacted, confirmed the Federal Court's decision.

In civil cases, litigants must first get leave (permission) from the Federal Court before they can proceed with their appeal.

On Jan 3, 2020, the High Court allowed the purchasers' judicial review application and quashed the minister's decision to allow EOT of 17 months to deliver vacant possession. The developer had earlier been granted a six-month extension. 

It also granted a declaration that the purchasers were entitled to liquidated ascertained damages claims due to the late delivery.

The COA overturned the High Court's decision on July 29 last year after allowing the appeals brought by the developer of the property Bluedream City Development Sdn Bhd and the minister.

It ruled that the minister has the statutory power to alter or modify the sale and purchase agreement (SPA) between a purchaser and a developer to extend the time under the SPA for the delivery of vacant possession.

In its decision, the COA also held that the purchasers have no right to be heard prior to the minister's decision because there is no express requirement under the Housing Development Act and the Housing Development (Control and Licensing) Regulations 1989 (HDR).

The purchasers had signed the SPA to purchase serviced apartment units built by the developer in the Mines Resort City, Seri Kembangan in Selangor. 

They then filed a judicial review application to challenge the minister's decision in giving EOT of 17 months for the developer to complete and hand over the serviced apartment.

In yesterday's proceedings conducted online, a team of lawyers led by Datuk K.L Wong represented the purchasers, while counsel Datuk Lim Chee Wee acted for the developer. Liew appeared for the minister and housing controller.

Meanwhile, the purchasers were represented by Dato’ Andy Wong, Viola Lettice De Cruz, Godfrey Thomas Fernandez, Rex Wong, Claudia Lynette Silva and Nur Atiqah while Albert Soo and Koh Kean Kang held a watching brief for the National House Buyers Association.