New Email Regarding Grievances of the Abandoned Housing Project’s Purchaser

I received a new email last week.

The email reads as follows:

Salam Tuan Nuarrual Hilal Md. Dahlan ,

I read your weblog. I would like to seek your advise on the following matter. Facts I had a current situation which the facts are briefly layout below :-

(i) Project abandoned;

(ii) Subsequently project revive with appointment of a white knight to take over the development. One of the condition in the revival scheme is that the purchaser is to pay additional top up i.e 25% from the original purchase price;

(iii) Notice on the revival and the top up is issued via letter to registered address of the purchaser and the bank and it is published in the major newspaper in Bahasa Malaysia, English and Chinese.

(iv) If the purchaser fails to adhere to request for the top up the white knight is entitled to redeem the unit from the bank and to resale the unit. (v) Out of those only 4 purchasers have not responded to the white knight, resulting the termination of the SPA.

(vi) The white knight has requested for the redemption statement from the Bank. Current Scenario :- One of the purchaser has turned up and informed the Bank that he is not aware of the revival. The notice on revival does not reach him as it was sent to his previous correspondence address. The Bank have informed him verbally that nothing much that the Bank can do as the unit has been sold. Note, the white knight has sold the unit. Hence, they will not entertain further request from borrower for reinstatement and white knight will refund him a sum of money less the redemption sum. Now the purchaser intent to demand from the Bank the amount that he has paid for 14 years towards the loan.

Question :-

(i) Is the bank at fault of not giving a formal letter to borrower to inform the borrower on the revival and the top up issue?

(ii) Can the bank rely on the notice published by the white knight on the revival conditions? As the notice clearly specified the name of borrower and bank. Thus notice is to both parties.

(iii) What is the remedial action / steps that the bank can take to solve the issue?

(iv) Can the borrower sue the Bank for negligence and demand for full compensation up to the current value of the property?

Hope the above is suffice for you to advise. Looking forward for your advise.

Thank you.

Regards,

One response to “New Email Regarding Grievances of the Abandoned Housing Project’s Purchaser

  1. It is a long held view that I hold in these circumstances (and subject to further investigation) that the liquidator is ultimately responsible for giving proper receipt and accounting for the condition of the company with the authority of the court and where relevant the consent of creditors.

    A liquidator has responsibilities to pursue all debtors, former directors any any other office holder and anyone with responsibilities at law to the failed company. Not simply to purchasers of properties who are secured creditors (and depending on the S&P contract) unsecured creditors of the company.

    From preliminary findings I have made, many of these companies had been defrauded, were operating whilst insolvent, had monies applied to personal use and for purposes other than what they were meant for. It is the misconduct of directors, lawyers and the negligence of banks that were in many instances responsible for the failure of these developer companies.

    Your relief may come from pursuing the liquidator now. He has to give proper account for management of the company and his management of its debts and financial situaiton. He stands in place of the previous directors. And where he has failed to properly identify defects and pursue recoveries he is personally and professionally responsible. he may have to pay out of his professional indemnity fund if cound to have been negligent.

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