Court Pushes Back on DBKL's Bid to Delay RM1.3 Million Cheras Compensation Payout

Key figures

• ●The High Court asked DBKL's counsel to get further instructions on its bid to stay a RM1.3 million compensation payout over a Cheras home damaged by the Montena Sovo Suites project, EdgeProp reported
• ●The April 24 judgment ordered DBKL and liquidated developer Fame Modulation Sdn Bhd to jointly pay RM1.279 million in damages (RM300,000 general damages, RM160,000 rental costs, RM819,000 repairs) plus RM100,000 in costs, per EdgeProp and Free Malaysia Today
• ●DBKL said paying would strain its road-maintenance and rubbish-collection budget; the couple's lawyer cited DBKL's 2023 accounts showing a RM2.3 million contingent liability for the case, EdgeProp reported
• ●The judge noted construction resumed two weeks after a stop-work order, worsening the damage, and set October 8 for DBKL's affidavit, October 15 for its response, and October 16 for the stay hearing to continue, EdgeProp reported
• ●The couple, a retired police officer and a retired headmistress, rented elsewhere for about ten years and took a Bank Rakyat loan to fund repairs before the court found DBKL and the developer jointly and severally liable, Free Malaysia Today reported

News summary

The Kuala Lumpur High Court has pushed back on Kuala Lumpur City Hall's (DBKL) bid to delay paying RM1.3 million in compensation to a retired couple whose Cheras home was damaged by construction next door, EdgeProp Malaysia reported. At an October 7 hearing, judge Gan Techiong asked DBKL's counsel to obtain further instructions on the stay application, with the case due to continue on October 16, EdgeProp reported.

DBKL argued that paying the award would affect its spending on road maintenance and rubbish collection and that it had no budget allocated for the payment, EdgeProp reported. The couple's lawyer, Cheow Wee, countered that DBKL had shown no special circumstances justifying a stay and no financial evidence to back its claim, citing the council's 2023 audited accounts, which he said recorded a RM2.3 million contingent liability tied to the suit, according to EdgeProp. The judge also questioned DBKL's position given its revenue and the development charges it had collected, and noted that construction had been allowed to resume two weeks after a stop-work order, causing further damage to the home, EdgeProp reported. He directed DBKL to file its supporting document as a sworn affidavit by October 8 and to respond by October 15.

The dispute dates back to an April 24 judgment, first reported in August, in which the court found DBKL and developer Fame Modulation Sdn Bhd, now in liquidation, jointly and severally liable for damage caused by piling and excavation works at the 29-storey Montena Sovo Suites project next door. The court ordered them to pay RM1.279 million in damages plus RM100,000 in costs, comprising RM300,000 in general damages, RM160,000 for rental costs and RM819,000 for repairs and relocation, matching figures reported by both EdgeProp and Free Malaysia Today. EdgeProp additionally reported RM17,080 in civil engineer fees and RM20,000 in quantity surveyor fees ordered on top of those sums.

The plaintiffs, retired police officer Adnan Azizon and his wife, retired headmistress Aziah Ahmad, moved out of their Alam Damai home with their four children after cracks and structural damage left them fearing it could collapse, both EdgeProp and Free Malaysia Today reported. They rented alternative housing for about ten years and took out a Bank Rakyat loan to fund repairs after the developer failed to honour its promise to fix the house, according to both outlets. DBKL has appealed the judgment, and the stay application remains pending.

The case is a reminder to homeowners near construction sites that courts can hold a local authority jointly liable alongside a developer for damage caused by inadequately supervised piling and excavation work, and that such compensation claims can take years to resolve even after a judgment is won.