Property Insight > News release > Late delivery payment begins from the booking fee collection – Federal Court

Late delivery payment begins from the booking fee collection – Federal Court

PUTRAJAYA: Federal Court has ruled that the calculation for late delivery payment to house buyers begins from the date the booking fee is paid, not when the sale and purchase agreement (SPA) is signed.

According to Chief Justice, Tengku Maimun Tuan Mat, the Housing Development (Control & Licensing) 1966 and its subsidiary laws were social legislation and that was a settled law.

This is in regards with a dispute brought before the court between the purchasers from Melaka and Kuala Lumpur against the developers- PJD Regency Sdn Bhd, GJH Avenue Sdn Bhd and Sri Damansara Sdn Bhd over the payment of the Liquidated Ascertained Damages (LAD).

The developers contended that the scheduled contracts must be read literally and in accordance with the intention of parties.

Tengku Maimun said, it is our view that the submission is untenable.

“When it comes to interpreting social legislation, the courts must give effect to the intention of Parliament and not the intention of parties.

“Otherwise, the attempt by the legislature to level the playing field by mitigating the inequality of bargaining power would be rendered nugatory and illusory,” she said today in the judgement to allow seven appeals by purchasers.

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