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PUTRAJAYA: The Federal Court, in a landmark ruling, said that housing courts could only decide disputes between buyers and developers as expressly set forth in purchase agreements.
A three-member bank chaired by Zaleha Yusof also said buyers could not make any claims against the developer if they had taken vacant possession and renovated their homes.
The bank, which was also made up of Zabariah Mohd Yusof and Rhodzariah Bujang, made these court rulings by allowing an appeal from Johor-based property developer Country Garden Danga Bay Sdn Bhd (CGDB).
The appeal was filed against compensation awarded to the buyer of a condominium apartment for RM 1.6 million who said the company had handed over the premises without a sheltered balcony.
The judges heard oral arguments on the appeal today, and both parties had previously submitted their written submissions to the court.
Zaleha said the written trial grounds will be available later.
The court also ordered the defendant, Ho Chee Kian, a Singaporean, to pay RM30,000 in costs to the company, which is the developer of the Danga Bay project.
Attorneys Cyrus Das and Leonard Yeoh represented CGDB, while attorney Viola De Cruz appeared for Ho.
Das said the ruling would be a guide to court presidents on its scope and jurisdiction.
Home buyers who have disputes with developers would refer their complaints for compensation from home developers to established courts in major cities.
The aggrieved parties can then go to civil courts to overturn court decisions through judicial review.
Last year CGDB obtained authorization from the Federal Court to appeal against the compensation awarded to Ho for his claims that they had allegedly handed over a condominium without a sheltered balcony.
Ho received the keys to the apartment in 2017.
The Johor Bahru Housing Court awarded Ho a compensation of RM50,000 in 2018, even though he had renovated his property.
CGDB requested a judicial review, naming Ho and the court as defendants. However, the High Court dismissed her claim on December 27, 2018.
On December 11, 2019, a three-member appeals court chaired by Kamardin Hashim also upheld the High Court’s ruling on the grounds that the appeal was unfounded.
