Putrajaya Federal Court, 10.10.2018: The Federal Court granted leave (to appeal) to the Purchasers
and the Developer on the following questions of law:
Purchaser’s Questions of Law
1. Whether the Housing Controller has the power to waive or modify any provision in the
Schedule H Contract of Sale as prescribed by the Minister under the Housing Development (Control
& Licensing) Act, 1966 (HDA)?
2. Whether Section 24 of the HDA confers power on the Minister to make regulations for the
purpose to delegate the power to waive or modify the Schedule H Contract of Sale to the Housing
Controller?
3. Whether regulations 11(3) of the HDReg is ultra vires the HDA?
Developer’s Questions of Law
4. Whether the Minister could delegate his duties (signing of the letter granting the extension
of time) to an officer in the then Urban Wellbeing, Housing and Local Government Ministry; and
5. Whether the Minister is obliged to afford the purchasers with a hearing prior to the minister
granting the EOT, albeit there is no such provision or requirement in the HDAct or the HDRegulations.
Putrajaya Federal Court, 14.5.2019: Having heard arguments and written submission from lawyers
for the purchasers, developers and the attorney general chambers, the Apex Court reserved judgment.
Her Ladyship Chief Justice Tengku Maimum Tuan Mat, who led a 5-member panel reserved its
decision to an unspecified date.
Putrajaya Federal Court, 26.11.2019: The Federal Court ruled that the Controller of Housing does
not have the power to grant extension of time (EOT) to housing developers. This means that, without
the EOT, the housing developer will have to deliver vacant possession within the prescribed statutory
period of 36 months failing which the developers will have to compensate house buyers LAD that is
equivalent to 10% per annum of the purchase price.
The Federal Court’s decision was delivered by Her Ladyship Chief Justice Tan Sri Tengku Maimum
Tuan Mat leading a panel consisting of Chief Justice of Malaya, Tan Sri Azhar Mohamed, Federal
Court Judges, Tan Sri Idrus Harun and Datuk Nalini Pathmanathan. In her conclusion, the Federal
Court Judges unanimously answered the Questions posed as follows:
Purchaser’s Questions 1 and 2 – Negative
Purchaser’s Question 3 – Affirmative
Developer’s Questions 4 and 5 – no necessity to answer
Our volunteer lawyers, working on a pro bono (free legal fees)
basis took up the challenge on a public interest litigation.
VICTORY TO ALL HOUSE BUYERS
The Landmark decision has been extensively reported in the news media and online portals even
in FocusM issue of Nov30-Dec6, 2019 entitled: “Federal Court verdict on EOT a welcome relief for
homebuyers”. The written Court Judgment of the Federal Court is now available in all the Law
Journals for all to understand our esteemed learned Judges rationale in upholding the primacy of
house buyers’ interest under the law.
YBhg Datuk Chang Kim Loong DSPN AMN is the Honorary Secretary General of the National
House Buyers Association (HBA), a voluntary, non-profit, non-governmental Organisation
manned purely by volunteers. You are welcome to visit www.hba.org.my
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