House auction ruled unlawful

JOHOR BARU: A woman whose apartment was auctioned off by a bank after she failed to settle her instalments of RM1,385.17 six years ago was awarded RM25,000 in damages by a magistrate’s court here.

In her statement of claim filed in the High Court in 2006, Metildah Louis Angel Perix, 51, said she had taken a RM23,750 loan from RHB Bank to buy a low-cost apartment in Taman Rinting in 1999.

However, she was unable to settle her instalments amounting to RM1,385 between May 2004 and November 2004 due to personal and health problems.

After receiving a telegram from the bank about the arrears, Metildah had paid a partial sum of RM500 in January 2005.

She was shocked that the bank had auctioned off the house together with all her belongings on March 2005.

Her claim, filed through lawyers R. Jeyabalan and K. Bharathi, to nullify the auction, sought RM14,543 in damages for her belongings and RM28,000 for the apartment.

Magistrate Khairulnadiah Hasmi ruled that the auction was unlawful and awarded Metildah RM25,000 in damages.

The bank was represented by lawyer Norlinda Lasri.

Metildah said she was happy that she had gotten something back as she spent almost RM30,000 renovating the house.

“I do not understand why my house was auctioned off when just a small amount of money was owed to the bank,” she said.

By The Star