JUDGMENT

Lim Hock Leng JC:

[1] The appellant is the developer and vendor of a housing development in Sibu which comprises townhouses with common facilities.

[2] The respondents are joint purchasers of a townhouse in the said housing development, for the consideration of RM453,888.00.

[3] By a sale and purchase agreement dated 17 July 2012 ("the SPA") which was entered into between the appellant and the respondents, the appellant undertook to deliver vacant possession of the respondents' units within 36 months from the date of the SPA. The appellant also undertook to complete the common facilities (gardens, guardhouse and road access) by the same deadline.

[4] Both those undertakings were given on pain of liquidated ascertained damages ("LAD") at the rate of 10% of the purchase price per annum from the date of each breach.

[5] The respondents sued the appellant in the Sessions Court for failing to meet the common contractual deadline for delivery of vacant possession and completion of the common facilities. They complained that the developer through its architect had certified only 85% completion of the townhouse and that they had made payment in stages up to that stage of certification.

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