Announcement

Time is Money: A case on Termination of Agreement to Lease after extensions of time

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Lawyers involved from ZRP: Wilfred Abraham, T. Kuhendran & J. Agesh Krishendra

This case revolved around among others, whether our client, Iskandar Harta Holdings Sdn Bhd (‘Iskandar’) had wrongfully terminated an Agreement to Lease (‘ATL’) between Ra Ta Land and them as well as whether time was at large or still of the essence when our client agreed to grant extensions of time for milestone payments to be made by Ra Ta Land.

The High Court found in favour of our client and held among others, that our client had the right to terminate the ATL given that Ra Ta Land had failed to make the necessary payments stipulated under the said ATL. Furthermore, despite extensions of time being granted by our client, the High Court held that the conduct of Ra Ta Land had demonstrated that time was of the essence for them to make the said payments. 

Aggrieved by the decision of the High Court, Ra Ta Land subsequently appealed to the Court of Appeal against the decision of the High Court.

Subsequently, the Court of Appeal after hearing oral submissions from both sides dismissed Ra Ta Land’s appeal and affirmed the decision of the High Court, in Iskandar’s favour.