Court rules purchasers’ suit against property owner must go to trial

KUALA LUMPUR: The High Court has rejected a property owner’s application to determine summarily whether it ought to be extricated from a suit brought by 11 purchasers of retail units in the now-abandoned Empire Remix 1 project in Subang Jaya, Selangor.

Judicial Commissioner Gan Techiong said the suit against Projek Muara Sdn Bhd could not be dismissed without the case going to trial.

“The sale and purchase agreements (SPAs) are tripartite in nature and the issues can only be determined after a trial. There is also a claim for damages and rescission,” he said.

The company, one of two defendants named in the suit, had applied under Order 33 of the Rules of the Court 2012 for judgment to be delivered premised on a question of fact and law without the necessity of going to trial.

The plaintiffs — Chua Shia Tsan, Leong Beh Yin, Ooi Joul Way, Ooi Chit Ti, BEA Therapy Sdn Bhd, Low Wai Kuan , Ng Tai Lei, Tengku Sofnis Nabilah Tengku Yusof, Gobi Thasan Ramasamy, Lim Yi Wen and Tan Chin Guan & Sons Sdn Bhd – were also awarded costs of RM5,000.

They named project developer True Renaissance Development Sdn Bhd as the other defendant in the suit filed on April 9, 2024.

Trial dates have yet to be fixed.

In the statement of claim, the plaintiffs said their SPAs, to which both defendants were parties, had been executed in 2012.

The SPAs provided that the project would be completed within 42 months.

The project was originally intended to be a joint venture between Projek Muara and True Renaissance, as reflected in a joint venture agreement dated Oct 27, 2011.

However, Projek Muara terminated the JVA with True Renaissance and appointed Greendev Sdn Bhd as the project’s new developer via a second JVA inked on Jan 15, 2019.

The plaintiffs, who bought their retail business units for RM300,0000 each, said the project was abandoned eight years ago.

They are seeking specific performance to compel the defendants to complete the project and pay liquidated ascertained damages for delay in its completion.

In the alternative, they want the court to rescind the SPAs and award damages.

Earlier, lawyer Ranjan N Chandran, appearing for the plaintiffs, submitted that Projek Muara was an important party in the suit as they had admitted to being appointed by True Renaissance, and later Greendev, as developers.

He said Greendev and True Renaissance were wound up on July 18 last year and May 15 this year, respectively.

Projek Muara was represented by Liew Yik Kai.