ENCORP ISKANDAR DEVELOPMENT SDN BHD v XXXX

b-02ncvcw-779-04-2022 Court of Appeal (Mahkamah Rayuan) 26 August 2025 • B-02(NCvC)(W)-779-04/2022 • 26 min read

13 cases cited (0 SG, 13 foreign)

Catchwords

Contract – Developer’s Interest Bearing Scheme (DIBS) – Construction period – Interpretation of “construction period” – Whether limited to 48-month Contract Period or extended until delivery of vacant possession (VP) – Ambiguity in drafting – Contra proferentem rule – Contemporaneous documentary evidence – End financing agreements – Subsequent conduct of parties – Estoppel – Equitable principles – Refund of alleged overpaid interests – Coercion and unequal bargaining power – Liquidated ascertained damages (LAD) distinct from DIBS obligations – Business common sense approach

Practice Areas

Contract

Judges (3)

Azimah binti Omar Delivered Hashim bin Hamzah Coram Ismail bin Brahim Coram

Counsel (7)

KL Wong Firm Sanjay Mohan Firm Jia Shen Counsel Appellant KL Wong Counsel Respondent Sanjay Mohan Counsel Appellant Wong Li Wei Counsel Appellant Wong Renn Xin Counsel Respondent

Parties (2)

ENCORP ISKANDAR DEVELOPMENT Sdn Bhd Appellant Xxxx Respondent

Case Significance

ENCORP ISKANDAR DEVELOPMENT SDN BHD v XXXX is a Court of Appeal (Mahkamah Rayuan) decision dated August 26, 2025 (citation: b-02ncvcw-779-04-2022). <p>Encorp Iskandar Development appealed the High Court's decision allowing 69 purchasers' claims for refund of progressive interest under the Developer's Interest Bearing Scheme (DIBS) beyond the 48-month contractual period. The Court of Appeal ruled that the DIBS obligation continued until delivery of vacant possession and was distinct from liquidated ascertained damages under the SPA. The appeal was dismissed with costs of RM25,000.</p> The panel comprised Azimah binti Omar, Hashim bin Hamzah and Ismail bin Brahim, with Azimah binti Omar delivering the judgment. Counsel appearing: Jia Shen (counsel for appellant), KL Wong (counsel for respondent), Sanjay Mohan (counsel for appellant), Wong Li Wei (counsel for appellant), Wong Renn Xin (counsel for respondent).

Summary

Encorp Iskandar Development appealed the High Court's decision allowing 69 purchasers' claims for refund of progressive interest under the Developer's Interest Bearing Scheme (DIBS) beyond the 48-month contractual period. The Court of Appeal ruled that the DIBS obligation continued until delivery of vacant possession and was distinct from liquidated ascertained damages under the SPA. The appeal was dismissed with costs of RM25,000.

What was the outcome of ENCORP ISKANDAR DEVELOPMENT SDN BHD v XXXX?

<p>Encorp Iskandar Development appealed the High Court's decision allowing 69 purchasers' claims for refund of progressive interest under the Develope...

Statutes Cited

Evidence Act 1950 (Cap 56)

s 114(g)

Cases Cited (13)

UK (1)

[1971] 3 All ER 237

MY (12)

[1970] 2 MLJ 114 [1979] 2 MLJ 229 [1982] 2 MLJ 222 [1983] 2 MLJ 85 [1995] 3 MLJ 331 [1996] 4 CLJ 1 [2016] 2 MLJ 428 [2019] 3 MLJ 395 [2023] 5 MLJ 644 [2023] MLJU 933 [2024] MLJU 1280 [2025] MLJU 2104