I-Marcom Sdn Bhd v Resham Singh A/L Naranjan Singh & Ors

Appellant(s): I-Marcom Sdn Bhd

Respondent(s):

• Resham Singh A/L Naranjan Singh
• Kalwant Kaur A/P Ram Singh Bajwa
• Ranita Kaur Resham Singh
• Rajash Singh
• Resham Singh Jr

• YA Datuk S. Nantha Balan A/L E.S. Moorthy
• YA Datuk Azimah binti Omar
• YA Dato' Ahmad Kamal Bin Md. Shahid

• The respondents purchased four condominium units from the appellant, a developer, after being induced by representations from the appellant's exclusive agent regarding a Guaranteed Rental Return (GRR) Scheme.
• The GRR Scheme promised a 5% per annum return on the purchase price for five years, commencing from vacant possession, and was documented in Conditional Ownership Package Plan (COPP) Forms.
• Upon delivery of vacant possession, the appellant denied knowledge of the GRR Scheme, claiming its agent was not authorised, leading the respondents to file a civil suit for losses.

• Whether the marketing entity (TE Asia and its executive Edward Lim) acted as an agent of the appellant, thereby binding the appellant to its representations.
• Whether the GRR Scheme, as a collateral benefit offered outside the statutory Sale and Purchase Agreement (SPA), was illegal or contravened the Housing Development (Control and Licensing) Act 1966 (HDA) and its Regulations (HDR).
• Whether the representations made by the marketing entity regarding the GRR Scheme were binding on the appellant, given the circumstances and the agent's apparent authority.

• The Court dismissed the appeal, affirming the High Court's decision that the marketing entity was indeed the appellant's agent, based on the appellant's own admissions in letters and a police report, and the sales brochure.
• The Court held that the GRR Scheme was not illegal, as it constituted a collateral benefit favourable to the purchasers and did not alter, contradict, or undermine the protective purpose of the HDA or the statutory SPA.
• The Court found the representations binding on the appellant, noting that the appellant had honoured other terms from the COPP Forms (e.g., discounts, free legal fees, furnishing), indicating awareness and endorsement of the agent's actions and apparent authority.