[Member] CASE UPDATE: Bludream City Development Sdn Bhd v Kong Thye & 184 others and 5 other appeals

Issues 

  1. Whether the Federal Court Decision in  Ang Ming Lee & Ors v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Anor and other appeals [2020] 1 MLJ 281 applicable to the present facts.
  2. Whether the Minister is empowered to grant extension of time to housing developer to deliver vacant possession.

Decision

The Court of Appeal distinguished an earlier Federal Court Decision in Ang Ming Lee & Ors v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Anor and other appeals [2020] 1 MLJ 281 on grounds that the issue before the Federal Court decision in Ang Ming Lee (supra) was whether the Controller could grant an extension of time to a developer while the issue in this case is whether the Minister has the power to grant an extension of time to the developer. Therefore, the decision of the Federal Court in Ang Ming Lee (supra) that the Controller could not grant an extension of time to a developer to complete the units under the statutory Sale and Purchase Agreement was not applicable to the present case.  

In relation to the second issue, the Court of Appeal found that the Minister is empowered by S24(2)(e) of the Housing Development (Control and Licensing) Act 1966 (HDA) to “regulate and prohibit the conditions and terms of any contract” between a developer and a purchaser. The expression “regulate and prohibit” is wide enough to include “waive and modify” any provisions under Regulation 11(3) of the Housing Development (Control and Licensing Regulation 1989 (HDR) with respect to the time period to complete the Units in a housing development. Hence, the Minister is empowered to grant an extension of time to the housing developer to deliver vacant possession.