DBKL fails to stay RM1.3 million payment order in Cheras structural damage case

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DBKL fails to stay RM1.3 million payment

Highlights

The court dismissed DBKL's application to stay payment of RM1.3 million in damages to Datuk Adnan Azizon and his wife over damage to their house in Alam Damai.
Judge Gan Techiong ordered DBKL to pay an additional RM5,000 in costs and stressed that budget constraints were insufficient grounds to stay enforcement of the judgment.
DBKL is jointly liable with Fame Modulation for the RM1.3 million payment, which includes RM819,000 in repair costs, RM160,000 in rent, while the developer's liquidation process remains ongoing.

This article was translated from the original. Read the original version by our correspondent here.

Court ruling and budget allocation issue

As reported by The Edge Malaysia, Judge Gan Techiong dismissed DBKL's application to stay the High Court's decision pending its appeal after the local authority failed to demonstrate special circumstances warranting the stay. The judge also ordered DBKL to pay RM5,000 in costs.

During the proceedings, the couple's lawyer, Cheow Wee, opposed the stay application, arguing that DBKL could not use budget constraints and payment commitments to contractors as grounds to delay enforcement of the judgment. He referred to DBKL's 2023 audit report, which showed that more than RM2 million had been allocated under a contingency plan following a lawsuit filed by an individual in Alam Damai, and confirmed that the allocation referred to his clients.

DBKL's lawyer, Mohd Ruzaini Zulkifli, argued that although funds had been allocated in the 2023 budget, no provision had been made for the case in the 2025 budget. The judge then questioned whether funds are typically set aside until a lawsuit is resolved, and Ruzaini replied that this did not appear to have happened in this case.

At an earlier hearing, the court adjourned proceedings to allow both parties to file affidavits regarding DBKL's budget position. While the plaintiffs filed an affidavit, DBKL failed to do so before Friday's hearing, resulting in the dismissal of its application.

DBKL's liability and the impact on the family

On 13 August, Gan ruled that DBKL and Fame Modulation were liable for the damage suffered by the home of Datuk Adnan Azizon and his wife, Datin Aziah Ahmad, in Alam Damai, Cheras. The house sustained structural damage as a result of the construction of the 29-storey Montena Sovo Suites, a project approved by DBKL in its capacity as the local authority.

The court ordered both defendants to pay RM1.3 million in damages, comprising RM300,000 for hardship and relocation, RM160,000 for rental expenses, RM819,000 for repair and relocation costs, RM17,080 for civil engineering fees, and RM20,000 for quantity surveyor fees. The developer is now in the process of liquidation, and liability is joint and several.

The family was forced to leave their home with their four young children out of fear that the residence could collapse. They also bore the repair costs themselves while renting alternative accommodation for more than 10 years, making this court decision significant in terms of authority accountability and the risks associated with urban development approvals.

In our earlier article on the impact of the 1MDB scandal on corporate governance debates, we highlighted the question of who should be held accountable when controls, audits and checks and balances fail. We also discussed how that focus has expanded to the role of boards of directors, whistleblower protection, and the need for auditors to act more proactively in identifying risks early rather than merely assessing failures that have already occurred.

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