The document discusses two court cases related to abandoned housing projects: 1) In Diong Tieow Hong & Anor v Amalan Tepat Sdn Bhd, the court ruled that purchasers of an abandoned housing project are entitled to rescind their sale and purchase agreement with the defaulting developer and receive late delivery damages and return of all payments made. 2) In Zulkepli bin Mohamad Zain & Ors v BCM Development Sdn. Bhd., the court held that if purchasers of an abandoned housing project fail to serve notice of termination of the agreement to both the developer and land proprietor (if a joint venture), the attempted termination will not be

1. Case law on abandoned housing
• Diong Tieow Hong & Anor v Amalan Tepat Sdn Bhd [2008] 3 MLJ 411 (High Court at
Kuala Lumpur). Hd:
• i. the aggrieved purchasers to an abandoned housing project is entitled to a
rescission of the S&P with the defaulting abandoned developer as the developer
had abandoned the project.
• ii. The purchasers also are entitled to get late delivery damages (LAD) calculated
from the promised date of delivery of vacant possession until the date of the
recession of the agreement. The purchasers also succeeded in obtaining the return
of all payment they made to the developer. However, the purchaser in abandoned
housing project must serve notice of termination on the defaulting abandoned
developer and the land proprietor in a joint venture housing project to entitle him
to compensation even though the blame and fault were well proven fell on the
vendor’s shoulder.
What is the implication if the purchasers failed to serve notice?
• Zulkepli bin Mohamad Zain & Ors v BCM Development Sdn. Bhd. [2010] MLJU 1165
(High Court of Malaya at Johor Bahru). In this case, a purchaser to an abandoned
housing project failed to serve notice of termination of the agreement on the
developer and the proprietor of the land (if there was a joint venture). The court
held that, if any of these parties (the developer and the proprietor) is not served
with the notice of termination, the purported termination will not be recognized
under the law