HOYA HOLDING SDN. BHD. v. CHIA THIN HING @ CHEAH THIN HENG & ANOR.

HIGH COURT MALAYA, TAIPING

DATO’ HJ ABDUL MALIK B. HJ. ISHAK J.

CIVIL APPEAL

20 AUGUST 1994

FACT:

# This is a housing development contract on sale and purchase agreement of dwelling house.

1 August 1990- respondents/plaintiffs purchase a house for RM25, 000

2 April 1992- physical installation of water pipe completed

July 1992- physical structure of the building completed

30 July 1992- physical installation of electrical wirings completed

3 August 1992- keys to the dwelling house were handed to resp/pf

- water pipe and electrical wiring were connected to the house to enable

resp/pf to examine the house

2 February 1993- certificate of fitness for occupation had been issued by Yang Di Pertua, Majlis

Perbandaran Taiping

24 February 1993- TNB had received RM60 from resp/pf as deposit for supply of electricity

# solicitor for resp/pf sue for compensation payable under clause 20(2) of the agreement.

RATIO DECIDENDI:

#It was stated in clause 20(1) of the sale and purchase agreement that the apppellant/defendant had to
deliver the vacant possession to the resp/pf with the connection of the water and electricity supply of the
said dwelling house within 24 months from the date of the agreement

# The phrase “with the connection of water and electricity supply to the said building” mean there
must be water and electricity supplies running in the dwelling house before the vacant possession has
been delivered

# app/df ordered to pay the liquidated damages.

Clause 20 of the standard sale and purchase agreement reads as follows:

20(1) The said building shall be completed by the vendor and vacant possession, with the
connection of water and electricity supply to the said building, shall be handed over
to the purchaser within 24 calendar months from the date of this agreement.
(2) If the vendor fails to hand over vacant possession of the said building, together with
the connection of water and electricity supply to the said building, in time, the vendor shall
pay immediately to the purchaser liquidated damages to be calculated from day to day at
the rate of 10% per annum of the purchase price.