Schedule
Schedule H.” 16. Berdasarkan Jadual G maka klausa berkenaan penyerahan milikan kosong telah dimasukkan ke dalam perjanjian jualbeli (klausa 23(1), (2) & (3)) sebagai peruntukan statutori untuk melindungi pembeli daripada pemaju. 32 17. Berikutan wujudnya tempoh penyerahan milikan kosong dalam perjanjian sebagaimana Jadual G maka Peraturan 11(3) terpakai kepada defendan jika milikan kosong tidak dapat diberikan dalam tempoh yang ditetapkan. Peraturan 11(3) memperuntukkan berikut: “(3) Where the Controller is satisfied that owing to special circumstances or hardship or necessity compliance with any of the provisions in the contract of sale is impracticable or unnecessary, he, may, by a certificate in writing, waive or modify such provisions: Provided that no such waiver or modification shall be approved if such application is made after the expiry of the time stipulated for the handing over of vacant possession under the contract of sale or after the validity of any extension of time, if any, granted by the Controller.” 33 18. Peruntukan berkenaan penyerahan milikan kosong adalah peruntukan statutori yang menyebabkan klausa berkenaannya telah dimasukkan ke dalam perjanjian jualbeli dan mestilah dipatuhi oleh defendan. Dalam keadaan dimana defendan mempunyai masalah untuk menyerahkan milikan kosong disebabkan oleh Perintah Berhenti Kerja, maka adalah menjadi tanggungjawab defendan sepenuhnya untuk memohon perlanjutan masa kepada Pengawal Perumahan (Controller of Housing). Dalam hal ini, defendan gagal berbuat demikian dimana tiada kebenaran bertulis oleh Pengawal diberikan kepada defendan untuk melanjutkan masa menyerahkan milikan kosong melebihi tempoh 24 bulan sebagaimana yang ditetapkan dalam kalusa 23(1) perjanjian. 19. ……… 20. ……… 21. ……… 22. ……… 34 23. Berdasarkan otoriti-otoriti di atas, defendan sekarang diestop daripada membangkitkan isu Perintah Berhenti Kerja oleh pihak berkuasa kerana defendan sendiri telah gagal melaksanakan tanggungjawab statutori mereka untuk memohon kepada Pengawal Perumahan bagi perlanjutan masa. Isu had masa 24. Mahkamah berpendapat isu had masa tidak terpakai kepada plaintif kerana undang-undang berkaitan had masa adalah jelas. Pihak-pihak juga terikat dengan perjanjian jualbeli. Walaupun perjanjian ditandatangi pada 11.11.2005, kausa tindakan hanya bermula dari tarikh penyerahan milikan kosong sebenar diberikan sebagaimana klausa 23 perjanjian dan bukan 6 tahun dari tarikh perjanjian ditandatangani. 25. ………. 26. ………. 35 27. Fakta jelas menunjukkan bahawa milikan kosong diserahkan pada 13.5.2016. Gantirugi LAD hanya dapat dikria selepas plaintif mengambilkira milikan kosong dan bukan sebelumnya. Di atas alasan-alasan yang dinyatakan, Mahkamah berpendapat tiada isu yang perlu dibicarakan dan dengan itu permohonan plaintif untuk memasukkan penghakiman muktamad terhadap defendan di bawah A.14 KKM 102 telah dibenarkan dengan kos.” THE COURT’S FINDING [31] This is an appeal on summary judgment application made by the Plaintiff which was allowed against the Defendant. Matters pertaining to summary judgment under Order 14 of the ROC 2012 had been decided in a plethora of cases. It is a principle, which remains good and trite law that the plaintiff is to establish a prima facie case. This would mean that when there is no dispute as to the fact and law, the plaintiff can dispose an action where the defendant’s defence is clearly unsustainable in law or on the facts without the need for a full trial. 36 [32] A number of cases supporting the principle under summary judgment can be referred from some of the authorities attributed by both counsels, the case of Bank Negara Malaysia v Mohd Ismail Ali Johor & Ors [1992] 1 CLJ (Rep) 14, a Supreme Court decision, the case of Eng Seng Kuang v Hong Leong Bank Bhd [2008] MLJU 38; Malayan Insurance (M) Sdn Bhd v Asia Hotel Sdn Bhd [1986] 1 MLRA 269 and National Company for Foreign Trade v Kayu Raya Sdn Bhd [1984] 1 MLRA 190. [33] In order to show whether there ought to be tried, the elements required can be found in the case of Shell Malaysia Trading Sdn Bhd v Filotek Trading Sdn Bhd [1999] 8 CLJ 592, where the High Court Penang which made reference to the Federal Court case of Fira Development Sdn Bhd v Goldwin Sdn Bhd. [1989] 1 CLJ 34 had this to say, “On the hearing of such an application, the court may give such judgment for the plaintiff against that defendant, “unless the court dismisses the application or the defendant satisfies the court with respect to the claim or to the part the claim to which the application relates that there is an issue or question in dispute which ought to be tried or that there ought for some other reason to be a trial of that 37 claim or part” (Ord. 14 rule 3). A defendant may show cause against a plaintiff’s application (i) by a preliminary or technical objection, or (ii) on the merits, eg. That he has a good defence to the claim on the merits or that a difficult point of law is involved, or a dispute as to the facts which ought to be tried, or a real dispute as to the amount due which requires the taking of an account to determine, or any other circumstances showing reasonable grounds of a bona fide defence (The English Supreme Court Practice 1997 vol. 1 para 14/3 – 4/3). What is a defence on the merits? The Supreme Court, in Fira Development Sdn Bhd v Goldwin Sdn Bhd [1989] 1 CLJ 34 per Lee Hun Hoe CJ (Borneo), imparted that “a defence on the merits means merely raising only an arguable or triable issue.” [34] Therefore in determining a prima facie case, the facts and evidence on Plaintiffs claim must be proven on the balance of probabilities and whether the Defendant has a triable issue. The crux of the matter is whether the Plaintiff is entitled to invoke liquidated ascertained damages (LAD) under the SPA to which the Defendant contended that no 38 consideration had been passed between the Defendant and the Plaintiff in purchasing the said Property. [35] The learned counsel for the Plaintiff submitted that there was an arrangement made where three parties agreed to a contra debt or set-off method of payment. The subject-matter of the set-off is the said Property which is to be transferred to the Plaintiff. The Plaintiff pleaded for the LAD in his Statement of Claim by referring to some of the provisions of the SPA. The Plaintiff had pleaded that the full terms and conditions of the SPA “and the effects thereof would be referred to and relied upon during the trial itself.” (at page 33 of the Appeal Record). [36] Upon careful perusal of the pleadings, how the issue of consideration came about can be found in Defendant’s Defence (at paragraph 4.2 and 4.3, page 43 of the Appeal Record) stating that the Plaintiff was not entitled to claim for LAD under the clause 23(2) of the SPA as Plaintiff did not comply with clause 4(1) of the SPA and the Settlement Letter of 29.10.05 was between the Defendant and Yap Grouting who had agreed to accept the said Property as a full set off against the outstanding account of RM409,135.00 due from the Defendant to Yap Grouting. 39 [37] The Plaintiff in reply to the defence made by the Defendant stated (at paragraphs 6, 6.1 and 6.2, at page 66 of the Appeal Record) that Yap Grouting agreed to accept the said Property as a full set-off against the outstanding amount due owing by the Defendant and Yap Grouting subsequently offered the said Property to the Plaintiff as a set-off against the debts due and owing by Yap Grouting to the Plaintiff. Plaintiff averred that there was consideration passed and that Plaintiff signed the SPA and said Property was registered under Plaintiff’s name (paragraphs 6.1 – 6.6, at pages 66-67 of the Appeal Record). [38] The preliminary requirements for an Order 14 application have been set out by Sean FJ (as he then was) in the case of National Company For Foreign Trade v Kayu Raya Sdn Bhd [1984] 2 CLJ 220 and there his Lordship itemized the following requirements: “(1) that the defendant must have entered an appearance; (2) that the statement of claim must have been served onto the defendant; and (3) that the affidavit in support of the application must have complied with the requirements of O. 14 r.2 of the RHC.” 40 [39] Based on the Plaintiff’s Statement of Claim, the cause of action pleaded is for the LAD as provided under the SPA as supported by his affidavit. Therefore the issue of entitlement to LAD under the SPA led to the issue of consideration raised as a defence by the Defendant. In addition, the Defendant also claimed that the Plaintiff acted as an agent of Yap Grouting which was denied by the Plaintiff by submitting further material facts. I have to agree with the counsel for the Plaintiff that the Plaintiff’s Statement of Claim had stated the material facts for the Plaintiff to plead its cause of action against the Defendant and had in reply to the Defendant’s Defence, given more material facts by stating the background to his claim. This is in reliance of the authority attributed by the counsel for the Plaintiff in the case of Bruce v Odhams Press, Limited [1936] 1 All ER 287, see page 294. The word “material” means, “necessary for the purpose of formulating a complete cause of action; and if any one “material” statement is omitted, the statement of claim is bad…” [40] The Plaintiff claimed that all parties including the Defendant consented for the said Property to be transferred directly to the Plaintiff and 41 this contra debt agreement was never disputed by the Defendant as reflected in their reply to the letter of 29.10.2005 (as exhibit “IAW-1” attached to Defendant’s Affidavit in Reply, at page 137 of the Appeal Record). The contra debt arrangement evidence adduced is further corroborated by Yap Grouting’s Affidavit In Reply (II) (at pages 219 – 226 and 229 – 236 of the Appeal Record) to support the fact that the Plaintiff is the registered owner of the said Property and was never an agent of Yap Grouting. [41] Triable issues must relate to the relevant issues or matter pleaded by the Defendant in his statement of defence. The defence raised by the Defendant that there was no privity of contract as no consideration moved from Plaintiff to Defendant could not hold water. The defence that the Plaintiff was acting as an agent for Yap Grouting is denied by Yap Grouting. In its plain meaning and obvious case, the contract made by Yap Grouting to Defendant was for himself as well as for the Plaintiff to set-off the debt between Yap Grouting and Defendant which this consideration supports such a contract. In the case of McEvoy v Belfast Bunking Co Ltd [1935] AC 24, is a case where a father who had Sterling Pounds of 10,000 on deposit with the Belfast Bank, transferred it to a deposit account 42 in the names of himself and of his infant son. Soon after, he died. The executors were allowed by the bank to withdraw the money and put it into an account in their own names. The money was in fact lost in attempts to keep the family business alive and the son sued the bank. One of the arguments by the Bank was that no rights accrued to the son over the deposit account because he had furnished no consideration. The argument was however rejected by the English Court. [42] The counsel for the Plaintiff contended that there is indeed a valuable consideration provided by the Plaintiff vis-à-vis the said Property and the SPA and relied on a number of authorities, among others: section 2 (d) Contracts Act 1950; Guthrie Waugh Bhd v Malaippan Muthucumaru [1970] 1 MLRH 432 and Korakyat Plantations Sdn Bhd (in liquidation) v Tan Siew Ee & Ors [2006] 1 MLJ 274. The counsel for the Plaintiff also relied on a recent case, NV Bina Sdn Bhd v Magna Park Sdn Bhd [2016] 9 MLJ 313 where the Court had held, borrowing Plaintiff’s counsel’s quote from the written submission, “On the second point, the fact that no consideration flowed from the promise is immaterial. The position in Malaysia under the Contracts 43 Act 1950 – distinct from the common law position – is that consideration need not flow from the promise; it suffices that any one party provides the consideration for there to be a valid contract: see the decision of the Judicial Committee of the Privy Council in Kepong Prospecting Ltd & Ors v Schmidt [1968] 1 MLJ 170. The promise by the defendant to make direct payments, and the benefit conferred on Bina BMK by reason of being relieved of the obligation to make the same payments, should very clearly provide the requisite consideration.” (emphasis added) [43] On the face of it, there was a valuable consideration and the agreement was properly executed. The title of ownership of the said Property is held by the Plaintiff, the Defendant could not object to Plaintiff’s ownership and the contractual arrangements that existed between them. There is a clear contractual arrangement in the instant case. Unlike in the case of Tan Eng Choong v Foo Kai Yuen [1988] 1 MLJ 531 where the application for a summary judgment was dismissed as the status of the parties and their contractual arrangements were far from clear. In that case, the plaintiff was of the impression that he was a partner to the legal firm 44 with the defendant whereas the defendant consented on a different arrangement. The High Court held that for the Court to allow for a summary order under Order 43 r.1(i) of the Rules of the High Court 1980 would be a misconceived and the order of the Senior Assistant Registrar which allowed the plaintiff’s application was set aside. [44] It is this Court’s finding that Yap Grouting’s said letter was attached to the Defendant’s Affidavit which clearly proves that the Defendant never objected to Plaintiff as part of the contra debt arrangement and thus as authorized registered owner of the said Property. Therefore the defence raised by the Defendant did not defeat the Plaintiff’s claims, neither did it support the Defendant’s defence. As remarked by Ramli Ali JCA (now FCJ) in the case of Carta Bintang Sdn Bhd v RHB Capital Berhad [2009] MLJU 360, “…An issue may be relevant, but if the determination can be done by way of affidavit evidence (as in Order 14 application) then such an issue is not “triable issue”, and therefore cannot be used to frustrate for summary judgment.” 45 [45] On the issue of LAD under the SPA (at pages 176 – 218 of the Apepal Record), the Plaintiff has the right to invoke clause 23(1), (2) and (3) of the SPA. Clause 23 (1) clearly spelt out on the LAD provision whereas clause 23 (2) and (3) provides in the event clause 23(1) is not fulfilled which will trigger clause 23(2) of the SPA. The words are clear that the vendor will be liable to pay from the expiry of the delivery of vacant possession in clause 23(1) until the date the purchaser takes vacant possession of the said Property. Therefore where the terms of the contract in relation to delivery of vacant possession had been reduced to writing, that is the SPA and the language is very clear and unambiguous, it is not open for the judge to improve on it as it would be adding new terms into the agreement: Tindok Besar Estate Sdn Bhd v Tinjar Co [1979] 2 MLJ 229. [46] In relation to the stop work order defence by the Defendant, the SPA had conformed to the statutory requirement of attaching Schedule G to the SPA following Regulation 11(1) Housing Development (Control & Licensing) Regulations 1989. Form G on vacant possession had been included in the SPA. Therefore the argument that there was a stop work order to justify the delay is not a defence as it the Defendant who is responsible to apply for an extension of time for delivery of vacant 46 possession. Failure to do so by the Defendant would be a clear breach of the SPA. It would also be illogical for developer or vendor not to apply for an extension of time which is allowed under the law. Based on the SPA, it is clear that the LAD can be invoked when there is a delay on delivering the vacant possession of the said Property and therefore failure to do so by the Defendant does not absolve the Defendant of his liability to pay LAD based on the case attributed by counsel for the Plaintiff in Tan Sri G darshan Singh v Loke Kee Development Sdn Bhd and Anor [2009] 7 MLJ 157. [47] On the issue of utilizing the said Property by Plaintiff to facilitate a loan, this was the Defendant’s contention which I do not see the importance of this issue as a triable issue as there was no evidence alluded by the Defendant. Based on the Appeal Record, the Agreement for Banking Facility between RHB Bank and the Plaintiff can be found at pages 176 – 218 of the Appeal Record. The date of the offer for the facility was 27.10.2005 and the date of agreement of the Banking Facility was 24.3.2006 where the period of the facility was for 180 months for the amount of RM335,000.00. The facility period would have surpassed by now and pertinent to note that where loan facility had been taken by the owners of any property, they are still required to repay the loan facility. In this case, 47 the Plaintiff is unable to rent out the said Property nor could benefit from it as the vacant possession was given only after 10 years. It can be surmised that the Defendant was merely asserting its case on bare allegations. This Court finds that it is the Defendant instead whom benefitted from the contra debt arrangement as he is uplifted from the burden of the purported debt of Yap Grouting. [48] On the issue of limitation, I will not delve much on this aspect simply because the action accrued for the Plaintiff was when the Defendant failed to adhere to clause 23(2) and (3) of the SPA. Briefly, based on the letter of demand of 18.7.2016 (at page 128 – 129 of the Appeal Record), it was stated the Defendant had given the Plaintiff vacant possession on 13.5.2016 and claimed for the delay of the 24 months that is from 11.11.2007 until 11.11.2009 as well as the delay until the vacant possession of the said Property was given to Plaintiff, that is from 11.11.2009 until 13.5.2016. The Plaintiff demanded for the LAD through its solicitors on 18.7.2016. Clause 23(2) and (3) of the SPA clearly spelt out the delay to include until the vacant possession is delivered to the Plaintiff and I cannot see any other way in interpreting the unambiguous words of clause 23 (2) and (3) of the SPA that the LAD is claimable until vacant 48 possession of the said Property is delivered to the Plaintiff. Therefore Plaintiff’s claim or demand made is not time barred. [49] This appeal arises from a summary judgment under Order 14 of the ROC 2012. It is incumbent upon the Court to have the overall view to ascertain whether the Defendant has a real or bona fide defence. I wish to rely on the case of Eng Say Kuang v Hong Leong Bank Bhd [2008] MLJU 38, “It is trite law that in such an application the onus on the defendant to be entitled to defend the action in a full trial, is to satisfy the court that "there is an issue or question in dispute which ought to be tried or that there ought for some other reason to be a trial..." [50] In light of the above reasons, this Defendant could not satisfy this Court nor am I convinced that there is an issue or question in dispute which ought to be tried. I find that the Defendant’s grounds for appeal did not give rise to any bona fide triable issue. In view thereof, the Plaintiff, based on the balance of probabilities, has a prima facie case for summary judgment 49 to be entered against the Defendant. I therefore dismiss the appeal with cost. Dated: 24 July 2017 (DATIN ZALITA BINTI DATO’ ZAIDAN) Judicial Commissioner Shah Alam High Court, Selangor 50 SOLICITORS: APPELLANT : CHAN WENG KHAI Tetuan Chang Weng Khai & Company No. 48-M, Jalan SS21/58 Damansara Utama 47400, Petaling Jaya Selangor Darul Ehsan [CWK/BSSB/16/LIT/493416] Tel : 03-7728 9633 Fax : 03-7728 9133 RESPONDENT : RANDY CHEW Tetuan Terrence & Randy Sutite D1-U6-16, Tingkat U6 Blok D1, Jalan Dutamas 1 50480 Kuala Lumpur [Ruj: L00012/16/TL/RC] Tel : 03-6205 3655 Fax : 03-6211 5997