Labuan Contractor Ordered To Refund Customer RM50,000 For Failing To Complete House

LABUAN, Oct 4 (Bernama) -- The Labuan Consumer Claims Tribunal has ordered a contractor to refund RM50,000 to a customer after breaching a construction agreement and failing to complete the construction of a house.

Director of the Ministry of Domestic Trade and Cost of Living (KDPN) in Labuan, Junaidah Arbain said that based on the agreement, the contractor was required to complete the construction of the house by Oct 7, 2023.

She said the case was heard on July 25, 2024, at the Labuan Consumer Claims Tribunal Court, which ruled that the contractor must pay the customer RM50,000 within 14 days from the date of the tribunal’s decision.

"However, the contractor not only missed the deadline but also caused the customer to incur additional costs to complete the remaining construction work.

"Despite promising to cover these extra expenses, the contractor failed to fulfil this commitment," she said in a statement to Bernama today.

Junaidah said the Consumer Claims Tribunal serves as an alternative legal avenue for consumers seeking compensation under the Consumer Protection Act 1999 (Act 599), for claims not exceeding RM50,000.

She urged the public to be aware of their rights as consumers and to take action by filing claims with the tribunal if goods or services purchased do not meet promised standards or are in satisfactory condition.

-- BERNAMA