NLFCS to pay RM2.02 million in damages

The High Court here ordered the National Land Finance Co-operative Society (NLFCS) to pay RM2.02 million in general damages to a project managing company after the co-operative was found liable of having breached a contract involving a housing project in Sungai Petani, Kedah.

Deputy registrar Mohd Khairi Haron ordered the amount in chambers today.

On March 28, Justice Datuk Abdul Aziz Abdul Rahim had held that there were reasonable grounds in Westingmont Holdings Sdn Bhd's (plaintiff) claim and awarded them special damages amounting to RM305,500 and RM70,000 in legal costs.

However, Abdul Aziz allowed two counter claims by NLFCS, including RM150,000 for a loan obtained by the plaintiff to clear nearly 100 squatters from the 5.28ha land in Kampung Tukang, about three kilometres from the town of Sungai Petani.

Counsel K. Ranjit Singh who acted for Westingmont told Bernama that the deputy registrar also ordered eight percent interest from the date of the agreement, Jan 24, 1999 to the final settlement.

He said the court assessed the general damages by taking into consideration the total sale of the development project which was estimated to RM16.3 million minus the total cost of construction amounting to almost RM13.8 million.

The plaintiff filed the action in August last year after NLFCS informed the company that the agreement to develop the plot located next to a booming township, which was signed in 1998, had expired.

After repeatedly seeking compensation, Westingmont was informed by NLFCS that it was not prepared to compensate the project manager for any work carried out.

Westingmont filed a writ of summons on Aug 23, 2010, seeking special and general damages amounting to RM8 million.

Ranjit Singh and Patminderjit Singh Gill appeared for the plaintiff while S.Surendran represented the defendant.

NLFCS is appealing against the High Court decision and the matter will be heard by the Court of Appeal next Thursday.