CHERN & CO. continues to represent the Plaintiffs, a group of purchasers of residential property units (“our Clients”) in respect of their claims against a Housing Developer for liquidated ascertained damages (LAD) for late delivery of vacant possession and late completion of the common facilities.
Regarding the ongoing proceedings before the final determination of the matter at trial, the Shah Alam High Court granted an interim payment under O. 22A of the Rules of Court 2012 (“ROC 2012“), totalling RM510,964.96 in favour of our Clients.
Our Jonathan Khaw acts for the Purchasers/ our Clients in this matter.
In this Article, we explain Interim Payment and its relevant legal principles.
What is an Interim Payment?
An Interim Payment is a part-payment of the claimed sum the Defendant pays to the Plaintiff during the proceedings. The sum varies and is used, among others, to ease the Plaintiff’s hardship (as seen in our case) before the Court decides the action. The interim payment amount should be comfortably less than the expected total value of the claim, as it will be deducted from the total claimed sum awarded at the case’s conclusion.
When can Interim Payment be requested?
The Plaintiff may, at any time after the Writ of Summons has been served on a Defendant and the time limited for him to acknowledge service has expired, apply to the Court for an order requiring the Defendant to make an Interim Payment. In simpler terms, such application should be made early in the proceedings.
What are the relevant legal principles concerning Interim Payment?
In Malaysia, the legal principles on interim payment under O.22A ROC 2012 have been succinctly stated by the Court of Appeal in Josu Engineering Construction Sdn Bhd v. TSR Bina Sdn Bhd [2016] 1 CLJ 1. In this context, the Court held as follows:
“…An interim payment of damages can be made..where the court is “satisfied” that the plaintiff has obtained judgment against the Defendant for damages to be assessed” (see r. 3(b)), or “if the action proceeded to trial, the plaintiff would obtain judgment for substantial damages against the defendant…”
“…There is no necessity for the plaintiff to show that he would suffer prejudice if he did not obtain an interim payment; neither must he show that a particular sum is required to cover a need. In awarding an interim payment, the court is not concerned with how the money is to be spent…”
How long will it take to receive an Interim Payment?
If you choose to work with CHERN & CO and, depending on the facts of your case, our lawyers can apply to the Courts for an Interim Payment as soon as it looks certain the case will settle in your favour. If they agree to the payment, it should happen promptly.
Amounts given must be a ‘reasonable proportion’ of the total damages you are expected to receive.
REACH OUT to our team for more information about applying for an interim payment. They are able to answer any queries or questions you may have and help explain the best way to start your claim for an advance on your claim.
Speak To Us
To discuss any points raised in this Article, please call us at +603 6419 9511 or email us at info@chernco.com.my.
Note: This Article does not constitute legal advice. For further information, please contact our Kuala Lumpur office.