Circular No 106/2019
Dated 30 May 2019

To Members of the Malaysian Bar

Indah Water Konsortium Sdn Bhd’s Bills in Relevant Sale and Purchase Transactions

We refer to Bar Council Circular No 136/2012, dated 25 June 2012, which was issued to Members following a request from Indah Water Konsortium Sdn Bhd (“IWK”) in respect of IWK’s bills in sale and purchase agreements.  A copy of Circular No 136/2012, including the request from IWK dated 25 May 2012, are available here (see pages 4 to 6) for your reference.

On 7 May 2019, the Bar Council received a further request from IWK pertaining to the same matter, which is available here (see pages 2 to 3), for your reference.

Members of the Bar are urged to take IWK’s request into consideration, and to incorporate the proposed provisions as they deem fit and necessary in order to protect their clients’ interests in relevant sale and purchase transactions.

Please note that some of the relevant provisions in respect of IWK charges are contained in Regulations 11 and 12 of the Sewerage Services (Charges) Regulations 1994 [PU(A) 115/1994]:

11.  Recovery of sewerage charges.

The owner and occupier of a premise to which sewerage services has been provided by a sewerage services contractor under these Regulations shall be jointly and severally liable to pay the sewerage charges, provided the owner of the premise shall, in the absence of any agreement to the contrary, be entitled to recover from the occupier of the said premise any such charges paid by him at the time of occupation by the occupier. [Ins. PU(A) 627/96]

12.  Notice of transfer of ownership of premises.

(1) Any user who sells or transfers any premises in respect of which sewerage charges have been incurred for sewerage services as provided under the Act, shall continue to be liable for the payment of all such sewerage charges payable in respect of the premises unless prior notice has been given to the sewerage services contractor of such sale or transfer. [Ins. PU(A) 927/96]

(2) Nothing in this regulation shall affect the liability of the purchaser or transferee to pay sewerage charges as a user in respect of the premises referred to in subregulation (1) or the right of the sewerage services contractor to recover those sewerage charges from the purchaser or transferee.

Should you have any enquiries, please contact IWK by telephone at 03-2780 1100.

Thank you.

Roger Tan
Chairperson
Conveyancing Practice Committee