High Court Dismisses Midlands City's Striking Out Bid, Orders Full Trial Over Delays in Strata Titles and CCC
The Shah Alam High Court has dismissed a striking-out application by developer Midlands City Sdn Bhd in a suit brought by 24 purchasers over delays in strata titles and CCC. The court found live issues requiring a full trial, which is set for April 2027.
SHAH ALAM (Oct 22): The High Court here has dismissed a striking out application brought by developer Midlands City Sdn Bhd, in a suit brought by 24 purchasers for delays in procuring strata titles and a Certificate of Completion and Compliance (CCC).
Judicial Commissioner Shoba Rajah Dorai Rajah in her decision on the application on Thursday said that Midlands had failed to exhibit the state title documents after the Ministry of Housing and Local Government had given them two extensions to obtain the strata title. Shoba said that there are live issues in this case that should be ventilated at a full trial, and thus dismissed the striking out application.
In this case, the 24 purchasers sued three defendants: Midlands; the operator of the property, Clifton Management Sdn Bhd, which was to tenant and manage the property; and the landowner and proprietor Ye Yu @ Ye Kim Onn. Their claim against the developer and the landowner was on the delay in procuring strata titles for the project. The CCC was issued on Aug 19, 2024.
The ministry granted the developer two extensions: the first until Aug 18, 2025, and a final extension up to Aug 18, 2026, wherein the developer still failed to obtain the strata titles. The purchasers further claimed against both the developer and operator jointly and/or severally on the failure to pay the rental payments for more than a year based on the tenancy signed with Clifton. The keys to their units have been retained by Clifton, and the purchasers claim they have incurred losses.
The purchasers have sought an extension of the defects liability period as they had not taken physical possession of their units when vacant possession was delivered. They contend that the developer had not afforded the opportunity to inspect their units to ascertain if there were defects. Their keys were given to Clifton for the tenancy.
Midlands City is a 22-acre project in Semenyih, Selangor, and is a joint venture with the landowner. Midlands City Sdn Bhd was incorporated in 2014 under the Wira Sumur group of companies. Its shareholders are Datuk Ng Aun Hooi, Ng Kok Kiang, and Ting Hing Khok. It is a mixed development comprising small offices/home offices (SoHos), serviced apartments, and a retail podium.
Shoba then fixed April next year for full trial to determine the purchasers’ claim. The purchasers were represented by Ranjan N Chandran, Rani Nadesan, Fedorah Jane Fernandez and Ooi Xing Hau of Hakem Arabi & Associates. The developer was represented by Chin Yu Yen and Eng Eann of YY Chin & Co.
