Hashim Yeop Sani SCJ:

The appellant, a housing developer, has appealed against the decision of the learned Judge in granting an order of specific performance of an agreement dated 3 November 1978 entered into between the developer and respondent, one Bhagat Singh s/o Surian Singh, and the order for statutory indemnity awarded under the Housing Developers (Control and Licensing) Rules, 1970.

Bhagat Singh s/o Surian Singh is a retired Hospital Attendant who in the latter part of 1978 booked a house with the developer in view of his retirement. Accordingly the two parties executed a sale and purchase agreement of Lot No. P.T. 13543, Taman Muhibbah, Tg. Rambutan, Perak. The agreement was signed on 3 November 1978. Under this agreement the agreed purchase price was RM29,404.50 and the house was to be completed within 18 months from the date of the signing of the agreement, that is by 2 May 1980. But the house was never completed by the date. A second agreement called the "supplementary agreement" was entered into by the parties on 11 July 1981 which provided that the house should be completed within six months from the date of the signing of the agreement and that the purchase