SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 MarsdenLR 3320

COURT OF APPEAL PUTRAJAYA
COSMOPOLITAN AVENUE SDN BHD – Appellant
Versus
KHONG YAO HAN & ORS AND ANOTHER APPEAL – Respondent
[Civil Appeal Nos: B-02(IM)(NCVC)-1594-08-2022 & B-02(IM)(NCVC)- 1654-09-2022]



Petitioner Advocates:Alvin Lai Kok Wing,Cheryl Leong Kit Yee ,Respondent Advocate: Ranjan N Chandran,Vinitha Laksmy Mohan

The court ruled that the Developer's delivery of Vacant Possession based on Partial CCC was valid under the Sale and Purchase Agreements, and the Architect owed no duty of care regarding this matter.

Headnote:(A) Sale and Purchase Agreements - Clauses 25.1, 25.2, and 20.4 - Liquidated Ascertained Damages - Plaintiffs claimed additional LAD due to Developer's delivery of Vacant Possession based on Partial CCC instead of Full CCC - Court found that the terms of the SPAs permitted delivery based on Partial CCC and that the Architect owed no duty of care to ensure timely delivery of VP - The High Court's dismissal of the striking out applications for both Developer and Architect was erroneous. (Paras 22, 67)

(B) Negligence - Duty of Care - The court ruled that the Architect did not owe a duty of care to the Plaintiffs regarding the issuance of Partial CCC, as the contractual obligations lay solely with the Developer. (Paras 27, 36)

(C) Settlement Agreements - The court emphasized that the Plaintiffs were estopped from claiming additional LAD as they had previously entered into Full and Final Settlement Agreements. (Paras 61, 66)

Facts of the case:
The Plaintiffs purchased office units in a commercial project and claimed additional LAD from the Developer for delays in delivering Vacant Possession, alleging negligence by the Architect. (Paras 8-18)

Findings of Court:
The court allowed both appeals and struck out the Plaintiffs' claims against the Developer and Architect, affirming that the contracts were clear in permitting delivery of VP based on Partial CCC. (Paras 67)

Issues: Whether the Plaintiffs established a prima facie case of negligence against the Architect and whether the High Court erred in dismissing the striking out applications. (Paras 26, 48)

Ratio Decidendi: The court held that the Architect's duty does not extend to ensuring timely delivery of VP under the SPAs, and the Plaintiffs' claims were contractual in nature, governed solely by the agreements with the Developer. (Paras 36, 40)

Result: Appeals allowed, claims struck out. (Paras 67)

JUDGMENT

Azimah Omar JCA:

A. Introduction

[1] There were two (2) appeals before us, namely; (i) B-02(IM)(NCvC)-1594-08-2022 ("Appeal 1594 / Developer's Appeal") and (ii) B-02(IM)(NCvC)-1654-09-2022 ("Appeal 1654 / Architect's Appeal"). Both appeals originated from the same High Court Suit No BA-22NCvC-89-02-2021 ("HC Suit 89").

[2] HC Suit 89 is essentially the Respondents-Plaintiffs' claim against the Developer for 'additional' Liquidated Ascertained Damages ("LAD") mounted on the allegation that the Vacant Possession delivered by the Appellant- Defendant Developer (on the basis of a partial Certificate of Completion and Compliance (also known as "Form F1 / Partial CCC / Partial Certificate of Fitness for Occupation / Partial CFO") of the Plaintiffs' specific parcels) was either a meaningless or an invalid delivery of Vacant Possession. Thus, the Plaintiffs contended that the delay for delivery of Vacant Possession subsisted even after the Developer's invalid delivery of Vacant Possession.

[3] A majority of the Respondents-Plaintiffs had already been paid LAD by the Appellant-Developer upon the parties' mutual execution and entry into Full and Final Settlement Agreements.

[4] However, the Plaintiffs somehow roped in the Architect for the Developer's alleged additional delay and wrongful delivery of Vacant Possession despite the fact that the Architect was neither privy to the SPAs nor was contractually obliged to ensure that the Plaintiffs' respective parcels were delivered within the deadlines set under the SPAs.

[5] Appeal 1594 or the Developer's Appeal is the Appeal by the 1st Defendant- Developer, Cosmopolitan Avenue Sdn Bhd ("the Developer / CASB") against the Learned Judicial Commissioner's ("Learned JC") decision to dismiss the CASB's Application to strike out the Plaintiffs' claim against the Developer pursuant to O 18 r 19 of the Rules of 2012 (O 18 r 19 ROC 2012).

[6] While Appeal 1654 or the Architect's Appeal, is the Appeal by the 2nd Defendant, Loo Chang Seng ("the Architect") whose application under O 18 r 19 ROC 2012 to strike out the Plaintiffs' claim against him was similarly dismissed by the same Learned JC.

[7] In any case, it is only apt that we appreciate the underlying facts of this Appeal before we delve into the grounds of our judgment and error in the Learned JC's decision to dismiss both the Developer's and Architect's striking out Applications.

B. Facts Of The Case

[8] The Respondents-Plaintiffs are purchasers of office units in the mixed commercial development project known as 'Empire City, Damansara' ("the Project") erected on HS(D) 222400, No PT 44016 and HS(D) 222402, No PT 44017, both in Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor.

[9] The only two signatories to all of the Sale and Purchase Agreements ("SPAs") were the respective purchasers and CASB as the Developer. The Architect was not at all privy to the SPAs.

[10] The Project consists of, amongst others, Shopping Mall, Office Building Blocks and Studio Building Blocks.

[11] CASB is the Developer and vendor of the Project as well as the registered owner of all those pieces of land held under HS(D) 222400, No PT 44016 and HS(D) 222401, No PT 44017, both in Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor.

[12] The 2nd Defendant is a licensed Architect appointed by CASB for the Project, practising under the name and style of 'EDA Architects'.

[13] CASB had obtained the approval of the building plans from the appropriate Authority on 23 March 2012.

[14] CASB as the vendor had agreed to sell and the Plaintiffs as the Purchasers had agreed to purchase units in Blocks E (Office Suites) and M (SOHO Office) of the Project with vacant possession subject to the terms and conditions contained in the SPAs.

[15] The salient terms under the SPAs governing the completion and delivery of the purchasers' respective parcels (or partial / practical completion of the Project) are cl 25.1, cl 25.2, cl 1.1 (o), cl 1.1 (m), and the Sixth Schedule to the SPAs:

"25.1

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top