BY SHAILA KOSHI
PETALING JAYA: For building an office lot that encroached into the adjoining property by an inch, a construction company ended up having to pay RM155,000 in compensation to its client.
Heng & Lee Construction Sdn Bhd entered into a contract with Lee Ah Seng in 2007 to build four office lots on Lots 276 to 280 in Mukim Perak, Temerloh.
But when it was time for the Temerloh Municipal Council to issue the certificate of fitness for occupation (CFO), it was found that a 4m-long portion of the side wall had crossed into an adjoining lot by a mere 2.2cm, resulting in Lee’s building having taken up 0.09sq m of his neighbour Hoo Sulip’s land.
On April 15 last year, the Temerloh High Court ordered Lee to pay Hoo RM50,000 as compensation for the encroachment onto Hoo’s property.
Following this, Lee sued Heng & Lee for breach of contract in respect of the building on Lots 279 and 280, and asked for RM657,000 in damages.
Among others, Lee claimed he had lost RM570,000 in rent for the 57 months that the Temerloh Municipal Council withheld the CFO because of the building’s encroachment into Hoo’s land.
On Aug 4 this year, in a consent judgment before Temerloh Sessions Court judge Ahmad Zamzani Mohd Zain, Heng & Lee agreed to pay Lee RM155,000 in damages in 10 monthly instalments beginning next month.
Under the consent agreement, if the company fails to make any of the instalments, it will have to pay the remaining balance immediately.
The company is also required to carry out plastering works on the external wall and paint the walls of the office lot built on Lots 279 and 280 at its own cost, after Lee obtains permission from his neighbour.
In its statement of defence, Heng & Lee denied the encroachment but added that if there was any, it was so insignificant that it would not affect Lee’s rights and interests.
Among others, it added that Lee’s claim was exorbitant and the non-issuance of the CFO was not caused by the company.
M. Ramachelvam and Nurul Syuhada Abdullah appeared for Lee, while Ong Siew Wan appeared for Heng & Lee.
