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2025 MarsdenLR 3118
HIGH COURT MALAYA SHAH ALAM
PERBADANAN PENGURUSAN 3 TWO SQUARE – Appellant
Versus
3 TWO SQUARE SDN BHD – Respondent
[Civil Suit No: BA-22NCVC-574-12/2019]
The plaintiff failed to provide lawful invoices for maintenance fees as required by statutory provisions, leading to the dismissal of their claim against the defendant.
Headnote:(A) Strata Titles Act 1985 - Section 36; Building and Common Property (Maintenance and Management) Act 2007 - Sections 8(2)(a), 17(1); Strata Management Act 2013 - Sections 58(d), 59(2)(a), 60(3)(c), 78 - Plaintiff's claims for unpaid maintenance charges totaling RM4,252,203.37 dismissed; Court found invoices for maintenance bills for certain parcels invalid due to lack of compliance with statutory requirements. (Paras 22, 36, 46).
Facts of the case:
The plaintiff, a Management Corporation established under the Strata Titles Act 1985, claimed outstanding maintenance and sinking fund contributions from the defendant developer, who challenged the claim's validity and accuracy, resulting in a dismissal of the claim. (Paras 1-3, 8, 11).
Findings of Court:
The Court concluded that the plaintiff failed to issue proper notices and calculate charges in compliance with statutory law, leading to an inability to substantiate the claims made. (Paras 52-57, 81).
Issues: The court addressed whether the defendant was liable for outstanding maintenance charges, and whether the plaintiff's invoicing practices were lawful under the relevant strata management legislation. (Paras 13-14).
Ratio Decidendi: The invoices issued by the plaintiff were deemed invalid due to non-compliance with statutory obligations, leading to the conclusion that the plaintiff's claims could not be substantiated based on presented evidence. (Paras 36, 74-79).
Result: Plaintiff's claim dismissed with costs awarded to the defendant in the sum of RM20,000.00.
The ratio decidendi is that a management corporation cannot recover claims for maintenance charges, sinking fund contributions, and late payment interest where invoices fail to comply with statutory requirements, including calculation strictly by share units (not square footage), proper imposition and computation of interest via adopted resolutions, treatment of accessory parcels without independent share units, issuance of Form 20 notices separately per parcel with specific amounts, adherence to debtor instructions on payment allocation, and exclusion of non-statutory charges from statements of account, rendering such claims unsubstantiated and unenforceable.[22][27][28][36][39][42][45][52][55][57][60][61][63][70][72][73][74][75][76][77][79]
| Table of Content |
|---|
| 1. claim for unpaid charges by management corporation. (Para 1 , 2 , 5 , 6 , 8 , 10 , 11 , 12) |
| 2. issues of liability and procedural validity. (Para 13 , 14 , 15 , 16) |
| 3. arguments regarding invoice calculation methods. (Para 17 , 18 , 19 , 20) |
| 4. timeline and validity of late payment interest. (Para 21 , 30 , 31 , 33 , 34 , 36) |
| 5. observations on management control and voting influence. (Para 22 , 23 , 24 , 25) |
| 6. invoicing practices and statutory compliance. (Para 40 , 41 , 42 , 43 , 44) |
| 7. validity and necessity of form 20 notice. (Para 46 , 47 , 48 , 49) |
| 8. recovery procedures must comply with statutory requirements. (Para 51 , 52 , 53 , 54 , 55) |
| 9. enforceability of notices under the statutory framework. (Para 56 , 57 , 58) |
| 10. creditor's obligations and statutory breaches. (Para 60 , 61 , 62) |
| 11. basis of the plaintiff's claim. (Para 64 , 66 , 67 , 68 , 69) |
| 12. limits on charges based on statutory authority. (Para 70 , 72 , 73) |
| 13. failure to substantiate claims for charges. (Para 74 , 75 , 76) |
| 14. procedural adherence and judicial discretion. (Para 78 , 79 , 80) |
Introduction
[1] The plaintiff, a Management Corporation established under the Strata Titles Act 1985 , is claiming statutory charges of RM4,252,203.37 from the defendant as of 31 October 2019.
[2] These charges include outstanding maintenance and sinking fund contributions, as well as late payment interest from the defendant, who owns several parcels and car park bays in 3 Two Square.
[3] The plaintiff's claim was dismissed with costs of RM20,000.00.
[4] Therefore, this appeal has been lodged.
Background Facts
[5] 3 Two Square is a commercial development in Petaling Jaya, Selangor, comprising six blocks labelled A to F. The project features office suites, retail spaces, and a 16-storey corporate tower called Block F — The Crest.
[6] The defendant is the developer of 3 Two Square and remains the registered owner of several parcels within the development as follows:
6.1. Thirteen shop lots in Block A;
6.2. All parcels (Parcel No M1-F/N3/254 to M1-F/15/267) within the 16-storey corporate tower known as Block F — The Crest (hereinafter referred to as Block F units);
6.3. There are 1,370 car parks at parcels B1, B2, LG1, and LG2 of 3 Two Square (hereinafter referred to as the Car Parks), which are accessory parcels to Parcel No M1-F/15/267 (hereinafter referred to as the Penthouse). The defendant operates and manages a car park facility or business within 3 Two Square.
[7] The defendant served as the managing agent from 3 August 207 until 31 July 2012, with its services officially ending on 15 August 2012.
[8] The plaintiff's claim relates to unpaid maintenance and sinking fund charges, including late payment interest, for Block F Units and the Car Parks, amounting to RM4,751,805.52 as of 31 October 2019.
[9] The plaintiff's claim is founded on six groups of invoices covering the period from 16 August 2012 to 31 October 2019, as follows:
[10] On 20 November 2019, the plaintiff's solicitors issued a Form 20 Notice under the Strata Management Act 2013 , demanding the payment of the outstanding charges from the defendant.
[11] Upon the filing of this suit, the defendant has made payments for the sum of RM499,602.15.
[12] The defendant has challenged the accuracy and validity of the plaintiff's claim, which will be examined in detail later in the grounds.
Issues To Be Tried
[13] Whether the defendant is liable for paying maintenance charges, sinking fund contributions, and late payment interest, totalling RM4,525,203.37 as of 31-10-201, with late payment interest accruing until full settlement.
[14] Whether:
(a) The invoices for maintenance charges, sinking fund contributions, and late payment interest for Group A invoices are calculated per square foot;
(b) The imposition of a 10% late payment interest on the outstanding invoices issued by the plaintiff since August 2012;
(c) The imposition of maintenance charges and sinking fund contributions by the plaintiff on
