KUALA LUMPUR: The High Court has allowed a suit by the owners of 32 units of luxury bungalows and villas in Cyberjaya to stop a developer and its parent company from proceeding with a commercial development project in the vicinity of their properties.
Judicial Commissioner Leong Wai Hong said the developer was obliged to meet its side of the bargain since it had contracted with the buyers to deliver residential development with specific features.
“Nothing more nothing less,” Leong said in a 68-page judgment delivered last week.
He said the court will always treat developers and property buyers fairly and squarely, without fear or favour.
Leong issued a declaration that the development project known as LakefrontVilla @Cyberjaya constructed in Dengkil, Selangor was a residential development project comprising 110 units.
He also declared that the project should only comprise residential properties and granted an injunction to restrain the defendants or their agents from proceeding with any commercial development.
The home buyers had filed their suit last year, naming developer Lakefront Resident Sdn Bhd, registered landowner Timeless Hectares Sdn Bhd, and MCT Bhd, the developer’s parent company, as defendants.
MCT Bhd is now known as Avalan Berhad.
The owners of the villas and bungalows commenced the suit on the basis that the proposed commercial development constituted a breach of the representations made to them in 2014 as well as a breach of the terms of their respective sale and purchase agreements (SPA).
MCT had at the project’s launch in 2014 issued brochures to potential buyers regarding the project involving the building of 110 exclusive villas valued at between RM1.8 million and RM3.6 million.
In 2017, the developer converted part of the land for commercial purposes, but two years ago the planning permission was rejected by the local authority, Sepang municipal council (MPS).
However, the Selangor appeals board allowed the developer’s appeal.
During the trial, MCT had argued that it should not be held liable because it was not a party to the sale and purchase agreements between the buyers and the developer.
However, Leong in his judgment said that on the evidence, MCT had made representations and promises during the promotion phase to the buyers.
Lawyer Ravindran Shanmuganathan appeared for the home buyers, while the defendants were represented by Justin Voon and Tan Ko Xin. - FMT
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