Capital City withdraws appeal against 141 purchasers over 18 contra units they received as settlement

PUTRAJAYA (Aug 19): The Court of Appeal on Monday struck out an appeal of Capital City Property Sdn Bhd, the developer of the Capital City Mall, over a consent order recorded on Sept 6, 2021, giving 141 purchasers of commercial units some 18 contra units as settlement for their claim for liquidated ascertained damages of RM7.9 million and guaranteed rental returns of RM8.2 million.

Capital City Property is a subsidiary of Singapore-based Capital World Ltd.

This comes after Capital City Property decided to withdraw or discontinue its appeal over the consent order.

The appeal was scheduled to be heard before a three-member Court of Appeal bench led by Datuk P Ravinthran, but following the discontinuance of the appeal, it was struck out.

The other two judges were Datuk Mohd Nazlan Mohd Ghazali and Datuk Dr Choo Kah Sing. They made no order as to costs following the discontinuance of the appeal.

In early January, Capital World announced that it would be selling most of its space, including retail units at its 11-storey Capital City Mall in Tampoi, Johor, to Singapore retailer Mustafa for RM368 million for its first department store in Malaysia.

Prior to this, Capital City Property tried to challenge the consent order recorded two years ago, contending that it was null and void due to uncertainty, that it contravened the statute, and was unenforceable in law.

The High Court decided that Capital City Property was represented by its former solicitors when the consent order was recorded in the judicial management court before judge Nadzarin Wok Nordin.

Capital City Property filed for judicial management on Feb 14, 2020.

The High Court ruled that the former solicitors for Capital City Property had agreed to the discharge of the judicial management order of June 17, 2022, that preserved the terms of the consent order on the agreement to give the 18 contra units.

The 141 purchasers were represented by counsel Ranjan N Chandran, Muthuveramani Nadesan, and Jayasri Nadarajan, while Datuk Joshua Kevin acted for Capital City Property.

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