Reprieve for developer in RM4m rental suit

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SHAH ALAM — The High Court granted the developer of The Arc @ Cyberjaya condominium a stay of proceedings pending appeal over damages previously awarded to 137 owners.

In allowing the application to Maju Puncakbumi yesterday, Justice Datuk Roslan Abu Bakar ordered the award to be put on hold until the matter is heard by the Court of Appeal.

The same court in November awarded the plaintiffs RM3.97 million for their class action suit against the developer for breach of contract.

Simon Yap, the lawyer acting for the developer, said case management was set for March 14 at the appellate court.

The 137 plaintiffs sued the developer for defaulting on payments under the Guaranteed Rental Returns scheme that both parties agreed upon purchasing the units.

Under the scheme, the developers signed an Option Agreement stating that the firm would rent the units from the owners for a stipulated monthly rate.

The owners alleged that the payments had ceased since 2016.

Representing the owners, Vincent Lim Chang said another class action suit against the same developer — filed by another group of 55 owners over the same issue last month — will proceed as scheduled despite yesterday’s outcome.

“There is a case management for that matter tomorrow (today), but that case is still in its early stages,” he said.

The 55 owners are demanding a sum of RM1.8 million.