Planning permissions must be valid for building plans to be lawful; invalid permissions lead to unlawful development.

[1] This is an appeal by the appellant (the defendant in the High Court) against the decision of the High Court dated 29 June 2016 after a full trial, which allowed the plaintiffs claim against the defendant and dismissed the defendants counterclaim with costs of RM120,000.00.

[2] We heard this appeal on 13 December 2017 and reserved our decision. After perusing the Records of Appeal, the written submissions filed by the respective learned counsel and upon hearing learned counsel, we adjourned the matter for our consideration and decision.

[3] We now give our decision and the reasons for the same.

[4] For convenience, in this judgment, the parties will be referred to as they were in the High Court. The background facts of this appeal are important to understand the context in which these appeal was brought.

Background Facts

[5] The plaintiff is the local authority established pursuant to s 3 of the Local Government Act 1976 (" LGA ") for the administration of local government in the Subang Jaya area. The plaintiff is also responsible for the town planning, environmental protection and building control, social and economic development and general maintenance functions of urban infrastructure in Subang Jaya. As the local authority, the plaintiff is also the local planning authority for the Subang Jaya area pursuant to s 5 of the Town and Country Planning Act 1976 ("TCPA").

[6] Under the Street, Drainage and Building Act 1976 ("SDBA"), the plaintiff is the local authority in charge of street, drainage and building in the Subang Jaya area with specific powers as provided under the SBD. The Uniform Building By-Laws 1984 (UBBL) is a by-law made pursuant s 133 of the SBDA. The UBBL sets out amongst others, the procedures for the submission and approval of building plans.

[7] The defendant, formerly known as Valiant Wealth Sdn Bhd is a developer Malaysia Land Properties Sdn Bhd, is a shareholder of the defendant. The defendant submitted an application for planning permission of a proposed development in addition to the existing hotel building known as the Grand Dorsett Hotel. The hotel was approved as one block titled hotel as a non-strata titled hotel. The hotel is situated on Lots 4244 and 4245, Mukim Damansara, Daerah Petaling, Selangor Darul Ehsan ("the Lots") and located fronting a main road known as Jalan SS1/21, Subang Jaya.

The First Application

[8] The first application for planning permission (no 1/530) for a proposed development on the Lots to the plaintiff was submitted on 4 May 2007 by Malaysia Land Properties Sdn Bhd (the holding company of the defendant) ("the First Application"). The proposed development under the First Application included:

(a) 5 blocks of 23-storey commercial serviced apartment with 944 units as well as 11 storey carpark podium; and

(b) 1 block of 23-storey commercial serviced apartment with 322 units connected to the hotel together with a 11-storey carpark podium.

[9] The First Application was rejected by the plaintiff on 29 August 2007 on the following grounds:

(i) maximum plot ratio of 1:4;

(ii) carpark requirements of two (2) carparks to one (1) serviced apartment unit were not met; and

(iii) provision with regard to motorcycle carparks.

[10] The neighbouring landowners surrounding the said Lots had also objected to the proposed development.

The Second Application

[11] Subsequently, on 31 October 2008 Valiant Wealth Sdn Bhd (the defendant before the change of name of the company) submitted a fresh application for planning permission ("the 2nd Application"). This time the proposed development included:

(a) 5-storey commercial space;

(b) addition to existing hotel building;

(c) One