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SCHEDULE H PROJECTS SHALL BE DELIVERED WITHIN 36 MONTHS

By:

Bryan Lui (Co-Managing Partner) [bryanlui@luibhullar.com]

Harneshpal Karamjit Singh (Co-Managing Partner) [harnesh@luibhullar.com]



Q: What is Schedule H?

A: Schedule H is a statutory agreement wherein developer receives the payment according to stages of completion.


The Court of Appeal in the case of Vignesh Naidu A/L Kuppusamy Naidu -v- Prema Bonanza Sdn Bhd [2023], has stated a few points: -

1. The Housing Development Act (HDA) 1966 is a social legislation with its main intent to protect the interest of home buyers.


2. Pursuant to the Federal Court’s decision in Ang Ming Lee -v- Menteri Kesejahteraan Bandar, Perumahan & Kerajaan Tempatan [2020] (‘Ang Ming Lee’), the Court of Appeal reaffirms the position that extension of time (‘EOT’) granted by the Housing controller is null and void. The Housing controller has no powers to waive or modify the 36 months period stipulated under the statutory contract.


3. Vacant Possession for Housing Developments, mainly under Schedule H shall be delivered within 36 months.


4. The principles laid down in Ang Ming Lee are to be retrospectively applied, which is to say that it applies to past and future cases.


5. Estoppel not applicable against Statutory Rights. The argument that purchasers have accepted token sum from the developer to waive their rights to pursue further claim is not applicable as this would defeat the purpose of the social legislation. An agreement cannot operate against a Statutory Right to claim for LAD.


6. The Limitation Period of 6 years starts from time Vacant Possession is supposedly given under Schedule H.


7. A Writ action is the correct mode to pursue the claim for Liquidated Ascertained damages (‘LAD’).

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