A developer cannot claim service charges post-formation of a Joint Management Body as liabilities remain with the original purchaser; transfer of obligations requires consent.

JUDGMENT

Tee Geok Hock JC:

Introduction

[1] The main issue in the present case relates to the developer's claims for service charges, said to be owed by the original purchaser, against the successful bidder of an auctioned apartment who took ownership by way of an assignment from the bank-assignee.

[2] The service charges which the developer (the Defendant herein) seeks to recover from the successful bidder (the Plaintiff therein) were in respect of the original purchaser's account for the period more than 6 years before the date of filing of this suit.

[3] After having paid the Joint Management Body the outstanding service charges claimed, the successful bidder did not want to pay the developer for the alleged unpaid service charges to the developer in respect of the period prior to the formation of the Joint Management Body. In response, the developer refused to execute the transfer of the strata title in favour of the successful bidder, and this led to the filing of the present suit by the successful bidder against the developer for a declaration that he is not under any obligation to pay the alleged service charges and for an order that the developer shall transfer the strata title of the apartment to him.

Facts

[4] In 1998 the Defendant-developer sold an apartment unit in a strata development to the original purchaser. By Loan Agreement and Deed of Assignment, the original purchaser's rights and benefits to the said apartment were absolutely assigned to Alliance Bank's precedecessor Bumiputra Merchant Bank Bhd (the bank-assignee) in consideration of a bank loan to finance the purchase: Exhibit "JKN1" to Plaintiff's Affidavit-in-Support.

[5] On 15 February 2000, the Joint Management Body for the strata development was formed.

[6] As a result of the original purchaser's defaults in repaying the loan, the bank-assignee sold the department by auction via Proclamation of Sale dated 7 April 2018: Exhibit "JKN1" to the Plaintiff's Affidavit-In-Support.

[7] The Plaintiff was the successful bidder at the auction sale.

[8] On 2 July 2018, the Plaintiff's solicitors sent the cheque of RM55,052.45 to the Joint Management Body as payment for outstanding service charges as per the Joint Management Body's invoice and statement for years 2012 to 2017: Exhibit "JKN3" to the Plaintiff's Affidavit-In-Support.

[9] By letter dated 2 July 2018, the Plaintiff's solicitors also sent a cheque of RM10,057.30 being payment of assessment charges in favour of the relevant local authority: Exhibit "JKN3" to the Plaintiff's Affidavit-In-Support.

[10] On 25 August 2018, the balance price was paid by the Plaintiff to the bank's solicitors: Exhibit "JKN2" to the Plaintiff's Affidavit-In-Support.

[11] On 3 October 2018 the bank's solicitors sent the cheques for the bank's portion of assessment and service charges, being one cheque in favour of Majlis Perbandaran Ampang Jaya and another cheque in favour of the Joint Management Body: Exhibit "JKN4" to the Plaintiff's Affidavit-In-Support.

[12] By letter dated 11 March 2019 the Plaintiff's solicitors wrote to the Defendant-developer to inquire about the property and strata title status: Exhibit "JKN5" to the Plaintiff's Affidavit-In-Support.

[13] By letter dated 14 June 2019, CA Management Services Sdn Bhd on behalf of the Defendant-developer replied that the following amounts were allegedly outstanding:

(a) Administrative fee payable to Jebcon Sdn Bhd RM500.00 (developer)

(b) service charges payable to CA Management Service Sdn Bhd for years 1999 to 2004 RM23,826.89

[14] On 22 June 2019, the Plaintiff's solicitors sent a letter instituled as "Request for Confirmation and Further Breakdown on the Interest" to CA Management Services Sdn Bhd in the following terms:

"Please be informed that our Client is agreeable to settle the outstanding as per your letter dated above subject to your following confirmations:

1) Your confirmation as to whether the Strata Title is in your custody or Developer's custody;

2) Your confirmation to releas