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GEORGE TOWN: A real estate developer was ordered by the High Court here to pay RM18,595 to a lawyer for the delay in handing over a vacant possession of a house.

Lawyer Ravinder Singh had sued the developer for failing to keep its end of a bargain of delivering the semi-detached double-storey house in Desa Jelita, Permatang Damar Lau, to him in May 2003.

Ravinder, who is also the Consumer Association of Penang complaints department head, had purchased the RM375,000 property on June 5, 2001.

Judicial Commissioner Datuk Mohd Zabidin Mohd Diah ruled that the developer, Archlaw Development Sdn Bhd, had delayed the handing over of vacant possession by 181 days.

In his claim, Ravinder said the developer sent him a notice to settle the remaining 20 per cent of the property value in May 2003.

He, however, refused to make the payment as the developer failed to deliver the house keys to him.

The developer contended it had complied to the delivery of vacant possession requirement as it had filed an application for Certificate of Fitness (CF) on the same day the notice was delivered to Ravinder.

Mohd Zabidin, in his written judgment, ruled that although the developer could legally deliver vacant possession on May 2, 2003, for reasons best known to it, it was not ready to hand over the unit to the purchaser.

He said there was also nothing in the letter to indicate to the purchaser that the company had applied for CF for occupation from the approving authority.

"Therefore, based on the facts of this case, I find the vacant possession was delivered to the purchaser on Dec 3, 2003, the first date the developer was willing to hand over the unit."

Mohd Zabidin ruled that the liquidated damages entitled by the purchaser amounted to RM18,595.90.

He also ordered the developer to bear the cost of the application.

Mohd Zabidin, however, rejected Ravinder’s claim for interest on RM75,000 at a rate of 10 per cent per annum and interest on the judgment sum.

Ravinder in September 2004 filed the claim at the State Housing Tribunal, and was awarded RM14,475.34.

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