Court rules in favour of Farlim
06/02/2007 The Star By K.KASTURI DEWI

PENANG: A High Court has ordered six beneficiaries of a 120ha land in Air Itam Estate and a developer to transfer the property worth RM32mil to Farlim Properties Sdn Bhd.

Justice Mohd Zabidin Mohd Diah allowed yesterday Farlim Properties’ suit against defendants Goh Keat Poh and five others, beneficiaries of the estate of Chor Bar Say, and Gerak Indera Sdn Bhd for specific performance of a sales and purchase (S&P) agreement dated Jan 23, 1992.

The court ordered the beneficiaries and Gerak Indera to transfer the property to Farlim Properties upon the latter paying the agreed purchase price of RM32mil to the beneficiaries.

The beneficiaries were also ordered to pay damages to Farlim Properties for inducing breach of the contract, and to pay compensation to Farlim Properties for breaching the agreement.

Gerak Indera was ordered to pay damages to Farlim for inducing the breach of the agreement.

In their 41-page statement of claim, Farlim Properties claimed that it had entered a S&P agreement with the beneficiaries on Jan 23, 1992.

Since they were not formally recognised as beneficiaries at that point of time, Farlim Properties claimed it had funded their application for vesting order at the High Court in 1995.

Just before the order was granted, the beneficiaries terminated the agreement with Farlim Properties alleging that the latter had breached terms of the agreement without specifying the breach.

The beneficiaries then sold the land to Gerak Indera without Farlim Properties’ knowledge for the same amount and subsequently the property was transferred to Gerak Indera.

Farlim Properties then pursued with the legal action to file a suit for specific performance of the agreement.

In their statement of defence, the defendants said since they were not beneficiaries of the estate at the time of the agreement, they did not have legal title or interest in the property.

Farlim Properties was represented by Datuk Mahinder Singh Dulku, Datuk V.M.Mohan and Abdul Fareed Abdul Gafoor.

Counsel K.Kirubakaran and N.Mureli represented the beneficiaries while Ranjit Singh and Joseph Yeo represented Gerak Indera.

Farlim Group chairman Datuk Seri Lim Gait Tong was present in court.