JUDGMENT

Elaine Yap Chin Gaik JC:

Introduction

[1] This is a suit filed by a group of 34 purchasers of condominium units ("Parcels") in a project known as "Iskandar Residences" located on freehold land held under Geran No 575060 Lot 194142 Mukim Pulai, Daerah Johor Bahru ("Land") on which the project was developed. The 1st Defendant is the developer and 99-year leaseholder of the Land and the 2nd Defendant is the registered proprietor of the Land.

[2] The Plaintiffs allege that the Defendants did not comply with reg 11 of the Housing Development (Control and Licensing) Regulations 1989 ("HDR") in that they sold the Parcels using sale and purchase agreements ("SPAs") that deviated from the standard form of agreement in Schedule H of the HDR.

[3] The final remedies sought by the Plaintiffs in this action are summarized as follows:

(a) A declaration that the SPAs are to conform to Schedule H

(b) An order that LAD be paid as quantified

(c) An order that the Defendants transfer freehold title to the Parcels to the Plaintiffs.

[4] The Defendants applied to strike out the action on 30 September 2022 and 12 October 2022 respectively. The striking out applications in Encls 30 and 35 only came up for hearing before me on 23 January 2025 together with the Plaintiffs' application for summary judgment and application to transfer proceeding and the 1st Defendant's application for security for costs. I heard Encls 30 and 35 first.

Background Facts

[5] Iskandar Residences is located in Medini in Johor. The Land was first alienated on 18 March 2010 under Hakmilik Sementara HS(D) 478952 PTD 170706 Mukim Pulai Daerah Johor Bahru and leased to Medini Land Sdn Bhd from 26 June 2013. The 1st Defendant purchased the lease from Medini Land Sdn Bhd and the 1st Defendant's status as lessee was registered on 1 October 2013.

[6] The 99-year lease was extended by a further 30 years vide Certificate for Lease Extension No 00006 and will expire on 25 June 2142 ("Lease").

[7] According to the 2nd Defendant, Medini is a special development zone in Iskandar, Malaysia that is being developed based on a private lease scheme which allows purchasers to purchase a long-term lease, while the 2nd Defendant retains ownership of the land ("Private Lease Scheme").

[8] By a letter dated 21 September 2011 from the Controller of Housing at the National Housing Department ("JPN"), the Controller declined to consider the 2nd Defendant's application for approval of proposed variations to the prescribed Schedule H as it was of the view that reg 11 of the HDR did not apply to the Private Lease Scheme to sell leases.

[9] The JPN letter further stated the following:

3. Walaubagaimanapun, dalam memenuhi objektif pembangunan Medini Iskandar Malaysia yang merupakan salah satu daripada lima koridor ekonomi negara, JPN berpandangan bahawa apa-apa pemajuan di kawasan pembangunan tersebut diberi pengecualian daripada mertgunapakai PJ8 sedia ada sepertimana di bawah Peraturan 11, Peraturan-Peraturan Pemajuan Perumahan (Kawalan Dan Pelesenan) 1989.

4. Dalam hubungan ini, permohonan pengecualian daripada Peraturan 11 tersebut perlulah dikemukakan oleh pemaju perumahan yang berkenaan bersama-sama dengan permohonan Lesen Pemajuan Perumahan dan Permit iklan dan Jualan Baru.

[10] By letters dated 22 November 2013 and 3 December 2013, the office of the Controller of Housing wrote to the 1st Defendant in response to its letter for exemption from reg 11 of the HDR with the following decisions:

(a) 22 November 2013 letter

2. Adalah dimaklumkan bahawa setelah meneliti permohonan tuan untuk meminda Jadual H (Perjanjian Jual Beli) di bawah Peraturan 11, Peraturan-Peraturan Pemajuan Perumahan (Kawalan dan Pelesenan) 1989, jabatan ini hanya meluluskan lanjutan serahan milikan kosong dan penyiapan kemudahan bersama selama 12 bulan iaitu daripada 36 bulan kepada 48 bulan sahaja.

(b) 3 December 2013 letter

2. Adalah dimaklumkan bahawa Kementerian ini telah meneliti permohonan tuan dan bersetuju untuk memberikan pengecualian Pe