Syed Azman Bin Syed Mohamed v Lian Seng (KL) Construction Co Sdn Bhd [1992] 2 MLJ 842

Syed Azman Bin Syed Mohamed v Lian Seng (KL) Construction Co Sdn Bhd [1992] 2 MLJ 842

High Court (Kuala Lumpur)

Delivery of Strata Title

Facts

1.     The Plaintiff and the Defendants entered into an agreement in March 1971 to purchase a third floor of a five-storey building (“the Agreement”).

2.     The Plaintiff paid the full purchase price and the building was completed in 1973.

3.     The Defendants, till the date have not yet deliver the strata title of the third floor to the Plaintiff.

4.     A suit was filed by the Plaintiff claiming for the specific performance of the immediate delivery of the strata title for the third floor.

5.     The Plaintiff then sought for a summary judgment in the High Court under Rule 81 of the Rules of High Court 1980.

6.     The Defendants initially asserted that the Plaintiff’s reliance on Section 8 of the Strata Titles Act 1985 (“the Act”) was a penal law and therefore could not seek for a specific performance of a penal law according to Section 6 of the Specific Relief Act 1950.

7.     The Defendants than contended that it was unable to specifically perform the delivery of the strata title to the Plaintiff because the six months period stipulated in section 8(2)(b) of the Act 1985 had expired, and under section 8(4) of the Act, the Director of Lands and Mines could only grant one extension for a period not exceeding three months if application was made before the six months period had expired.

Issue

1.     Whether the Defendants are enjoined by law to procure the said strata title to the Plaintiffs and upon the issuance of the said strata title, to transfer the same to the Plaintiff.

Ratios

1.     It was stipulated that in the Clause 6(b) of the Agreement, the vendor shall take all the necessary steps to obtain the approval for sub-division of the said property.

2.     Clause 15 of the Agreement stated that when the Purchaser has already paid the full purchase price and performed all the obligations under the Agreement, the Vendor shall issue the relevant document of title and execute the transfer.

3.     Therefore, according to the National Land Code 1965 (“NLC”) and the Act, the Defendants were required to get a separate title for the property acquired by the Plaintiff.

 

Decision

1.     The Court allowed the Plaintiff’s application and ordered the Defendants to apply for subdivision of the building within one month from the date of this order.

 

Key Take Away

1.     It is the developer’s obligations to apply and obtain the strata title on behalf of the purchasers.

2.     Upon the payment of full purchase price, the developers must ensure that the strata title of the property is issued by the appropriate authority in order to make the purchaser as the owner of the property.

 

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