Tay & Partners | The Unsettling Law On Housing Liquidated Ascertained Damages (LAD) After Ang Ming Lee Has Finally Been Resolved

In November 2019, when Ang Ming Lee & Ors v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Anor and other appeals [2020] 1 MLJ 281 (“Ang Ming Lee”) was first delivered by the apex court, the decision caused ripples in the housing industry. The decision of the Federal Court effectively nullified and rendered void earlier decisions of the Controller of Housing in granting an extension of time to housing developers pursuant to Regulation 11(3) of the Housing Development (Control and Licensing) Regulations 1989 (“HDR”). The Federal Court in Ang Ming Lee, having ruled that Regulation 11(3) of the HDR was ultra vires, did not address or discuss the issue of whether such a ruling would be applied prospectively. In the absence of a ruling that the decision in Ang Ming Lee would apply prospectively, the default position is that Ang Ming Lee would apply retrospectively.