The right to sue for liquidated damages accrues upon breach of contract as per the Limitation Act, not upon subsequent events.

[1] The appellant, Golden Approach Sdn Bhd (defendant in the Sessions Court and hereinafter referred to as "Golden Approach") appeals against the decision of the learned High Court Judge in dismissing Golden Approach's Appeal. The learned High Court Judge had dismissed Golden Approach's appeal, and affirmed the decision of the Sessions Judge who had allowed summary judgment by the respondents herein (plaintiffs in the Sessions Court) to be entered against Golden Approach.

[2] In this judgment we will refer to the appellants as "Golden Approach" and the respondents as "the plaintiffs".

Background

[3] The undisputed facts are as stated by the plaintiffs in their written submission which, to a certain extent is reproduced herein.

[4] Pursuant to a Sale and Purchase Agreement dated 4 August 1995 ("SPA") Lau Sen Leong (the 1st plaintiff) and one Lau Kim Swee, had purchased all that piece of land with vacant possession known as Plot/Lot NO 0010 together with a bungalow to be erected on two pieces of land known as HS(D) BP 394, Lot No: 4020 and HS(D) BP 395, Lot NO 4021, both in Mukim Ulu Bernam, Daerah Batang Padang, Negeri Perak ("the Property") from Golden Approach, a housing developer licensed under the Housing Developers (Control and Licensing) Act 1966, at a price of RM233,600.00.

[5] The SPA was in the form prescribed in Schedule G to the Housing Developers (Control and Licensing) Regulations 1989 as was then in operation.

[6] One of the purchasers, Lau Kim Swee ("the deceased"), passed away on 6 August 2012. The deceased's estate is now represented by Sim Kum Ying and Lau Sen Hock as joint administrators of the estate of the deceased. They are named as the 2nd plaintiffs in the Sessions Court.

[7] Clause 20 of the SPA provides for the deadline for Golden Approach to hand over vacant possession of the Property to the plaintiffs. It reads as follows:

"20. Time for handing over of vacant possession

1) Vacant possession of the said Building to which water and electricity supply are ready for connection shall be handed over to the Purchaser within thirty- six (36) calendar months from the date of this Agreement; and

2) If the Vendor fails to deliver hand over possession of the said Building, to which water and electricity supply are ready for connection to the said Building, in time, the Vendor shall pay immediately to the Purchaser liquidated damages to be calculated from day to day at the rate of ten per centum (10%) per annum of the purchaser price."

[8] It is undisputed that the delivery of vacant possession of the Property was only effected on 14 March 2016. There had been a delay from 3 August 1998 until 14 March 2016 on the part of Golden Approach in delivering vacant possession of the same.

[9] By letters of demand dated 28 December 2016 and 11 January 2017, the plaintiffs vide their solicitors, Messrs CL Chan & Ng claimed for liquidated damages in the sum of RM411,456.00 against Golden Approach.

[10] Golden Approach vide its solicitors Messrs Cheong Wai Meng & Van Buerle's letter dated 26 January 2017, refused to pay the liquidated damages claimed by the plaintiffs and contended that the plaintiffs' claim was time- barred.

The Issue

[11] The cause of action is premised on breach of contract, namely the SPA. The bone of contention between the plaintiffs and Golden Approach is the date