The Court of Second Instance has ruled in favour of Pearl Horizon developer Polytex Corporation Ltd’s request that the MSAR Government be called in a trial initiated by the buyer of a housing unit in the contentious residential project.
According to a release by the court, the owner of a pre-developed housing unit in Pearl Horizon filed a complaint requesting compensation for losing the investment after the MSAR Government reclaimed the land plot after the company failed to develop the property before the end of its 25-year concession agreement.
In its defence, Polytex requested that the Macau Government be called to take part in the trial, with the company considering that the failure to abide by the contract with the plaintiff was due to an illegal application of the Basic Law, with the local government not allowing the company to extend its concession contract.
Polytex’s parent company – Hong Kong-listed developer Polytec Asset Holdings – claims that the development failed to be completed due to delays by the local government in granting requisite approvals and permits for the project’s development.
In 2016, Polytex’s request was refused on the grounds that the private plaintiff was not seeking to accuse the MSAR Government of breach of contract, while not presenting evidence that the company had any ‘solidarity’ connection with the local government that justified the request.
Polytex later appealed to the Court of Final Appeal, with the court considering that the request was intended to assist the defence of the company, and could thus be allowed.