CHERN & CO. is proud to represent a group of residential property purchasers, in their ongoing claims against a Housing Developer for liquidated ascertained damages (LAD) due to the late delivery of vacant possession and the delayed completion of common facilities.
Recently, the Shah Alam High Court granted an interim payment of RM510,964.96 to our Clients under Order 22A of the Rules of Court 2012 (“ROC 2012”), a significant development in the case before the final trial determination.
Jonathan Khaw of CHERN & CO. represents our Clients in this matter. In this article, we explain what an interim payment is and the legal principles surrounding it.
What is an Interim Payment?
An interim payment is a partial payment made by the Defendant to the Plaintiff during the proceedings. It aims to alleviate the Plaintiff’s hardship while the case is ongoing. This payment is typically less than the total claim amount and will be deducted from the final award.
When Can Interim Payment Be Requested?
A Plaintiff can request an interim payment at any time after serving the Writ of Summons and after the Defendant has had the opportunity to acknowledge service. This application should be made early in the proceedings to address immediate financial needs.
Legal Principles of Interim Payments
In Malaysia, the principles governing interim payments under Order 22A ROC 2012 are well-articulated in the case of Josu Engineering Construction Sdn Bhd v. TSR Bina Sdn Bhd [2016] 1 CLJ 1. The Court of Appeal clarified that:
- An interim payment can be granted if the Court is satisfied that the Plaintiff is likely to obtain a substantial judgment against the Defendant.
- The Plaintiff does not need to demonstrate specific financial hardship or need for the interim amount.
- The Court’s focus is not on how the interim payment will be used but rather on ensuring that the Plaintiff is not unduly disadvantaged during the proceedings.
How Long Will It Take to Receive an Interim Payment?
If you choose to work with CHERN & CO., our lawyers will apply for an interim payment as soon as it appears likely that the case will settle in your favor. The Court will typically process the payment promptly, and the amount should be a reasonable proportion of the anticipated total damages.
For more information about applying for an interim payment or to discuss your claim, reach out to our team. We are here to answer your questions and guide you through the process.
Speak To Us
To discuss any points raised in this article, please contact us at +603 6419 9511 or email info@chernco.com.my.
Note: This article is for informational purposes only and does not constitute legal advice. For personalized legal guidance, please reach out to our Kuala Lumpur office.