Apex Court upholds S’wak homebuyers’ right for late delivery to be calculated from booking fee payment date

Ling (right) and Ngu speak to one of the homebuyers at the Kuching Court Complex.
Ling (right) and Ngu speak to one of the homebuyers at the Kuching Court Complex.
KUCHING (March 20): The Federal Court here yesterday upheld the Court of Appeal’s ruling that liquidated ascertained damages (LAD) for late delivery of housing units must be calculated from the date the booking fee is paid, rather than the date of the sale and purchase agreement (SPA).In a unanimous decision, Justices Tan Sri Abdul Rahman Sebli, Datuk Abu Bakar Jais, and Datuk Vazeer Alam Mydin Meera affirmed that the PJD Regency case decision applies in Sarawak.

The ruling reinforces home buyers’ rights and carries significant consequences for housing developers in Sarawak.

The case started when homebuyers Anna, Liew, and Tiong – represented by lawyers Daniel Ling and Jackson Ngu – contested a High Court ruling after buying apartments from a developer.

Facing delays in receiving their units, they brought their claims to the Sarawak Housing Tribunal, which ruled in their favour and awarded LAD starting from the booking fee payment date.

However, the developer, represented by lawyers Arthur Lee and Sylvester Lai, filed for a judicial review at the Kuching High Court, claiming that the tribunal had made an error.

On March 24, 2022, High Court Judicial Commissioner (JC) Alexander Siew How Wai ruled that the PJD Regency decision was based on Peninsular Malaysia’s Housing Development (Control and Licensing) Act 1966, which was not applicable in Sarawak.

He further ruled that while Sarawak’s Housing Development (Control & Licensing) Ordinance 2013 is similarly worded, it is not in pari materia with the Peninsular Malaysian Act.

Siew stated that in Sarawak, signing a booking form does not constitute a binding agreement but merely provides an option to purchase.

As a result, he held that the LAD should be calculated from the SPA date instead.

The High Court also found that the Housing Tribunal had exceeded its jurisdiction by granting awards exceeding RM150,000.

The Court of Appeal later overturned this decision, stressing that Sarawak’s housing laws should be interpreted in a way that maximises protection for buyers.

The court reaffirmed that LAD must be calculated from the booking fee payment date, in line with the PJD Regency ruling.

The developer then sought to challenge this ruling in the Federal Court.

However, the Federal Court upheld the Court of Appeal’s decision, confirming that the PJD Regency precedent applies in Sarawak and that LAD must be calculated from the booking fee payment date.

The Sarawak Housing Tribunal was represented by McWillyn Jiok and Syed Rezif from the Sarawak State Legal Counsel’s Office.

Source: https://www.theborneopost.com/2025/03/20/apex-court-upholds-swak-homebuyers-right-for-late-delivery-to-be-calculated-from-booking-fee-payment-date/

By Desiree David on 

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