Cyberjaya bungalow owners win again as developer’s appeal bid fails

In a recent ruling, a three-member Federal Court bench has denied the developer and landowner leave to appeal a Court of Appeal decision that halted a commercial project near luxury bungalows and villas in Cyberjaya. The Court of Appeal's decision, delivered by Justice Evrol Mariette Peters, found that the developer Lakefront Residence Sdn Bhd breached their sale and purchase agreements (SPAs) with the 28 home buyers.

Justice Peters emphasized that the developer's decision to convert 24 residential units into a commercial development, despite obtaining planning permission, constituted a clear breach of their contractual promise to deliver the residential development known as Lakefront Villa @ Cyberjaya. Despite the developer obtaining planning permission, the existence of such permission does not excuse a breach of contract.

The Court of Appeal's unanimous judgment also rejected the developer's reliance on a disclaimer in their brochure, stating that the wording was too small to be read with the naked eye. The developers, MCT Bhd (now known as Avaland Bhd), sought to convert part of the land for commercial use in 2017 when the Sepang Municipal Council rejected their application for planning permission. However, the Selangor Appeals Board later allowed their appeal.

In 2021, a judicial commissioner ruled that Lakefront Villa @ Cyberjaya should remain a residential development project. This ruling, supported by lawyers Ravindran Shanmuganathan and Ameer Hazeem for the home buyers, and Lim Chee Wee, Justin Voon, and Tan Ko Xin representing the developers, has now been upheld by the Federal Court bench, leading to the denial of the appeal.