The JMB lacked standing to pursue claims for funds collected by AM-EL, as the obligations did not legally extend to AM-EL or its directors.

[1] Setapak Ria Condominium ("SRC"), as its name describes, is a condominium development located at No 21, Jalan Mata Air 2, Off Jalan Genting Kelang, Setapak 53300 Kuala Lumpur. The development consists of 450 units of apartments. It also has a variety of facilities including several shop units, a club house, a swimming pool, sports and laundry facilities.

[2] This case concerns a claim by the Plaintiff for monies collected from purchasers of apartments in SRC ("Purchasers") by the developer of SRC and the 4th Defendant, in circumstances which it was alleged, also gives rise to liability on the part of the 1st, 2nd and 3rd Defendants.

[3] Pursuant to an order of the Court in Mahkamah Tinggi Kuala Lumpur Guaman No WA-22NCVC-128-03/2017 ("Suit 128") dated 17th May 2017, Mahkamah Sesyen Kuala Lumpur Guaman No B52-524- 08/2014 ("Suit 524") was transferred to the High Court and consolidated with Suit 128.

[4] Thus, both Suit 524 and Suit 128 were tried together. However, by the time of the trial, the action of the plaintiff in Suit 524 was struck out leaving only the counterclaim of the defendant.

[5] Therefore, the trial of these suits proceeded only in respect of the claim and counterclaim in Suit 128 and the counterclaim in Suit 524. The trial took a total of six days and was initially heard before a different judge.

The Parties

[6] In Suit 128, the Plaintiff is the Joint Management Body of SRC ("JMB"). The JMB was established on the 21st of April 2013 (Registration No JMB 746/2013). It was established under the Building and Common Property (Maintenance and Management) Act of 2007 ("Act 663").

[7] There were four defendants in Suit 128. The 4th Defendant is a company incorporated on 24th November 1997 ("AM-EL"). AM-EL provides condominium management services. The 1st and 2nd Defendants are directors and shareholders of AM-EL. The 3rd Defendant is a shareholder of AM-EL and was at one time a director. The 3rd Defendant resigned as a director on 30th June 2005 but holds the position as Sales Administrator in AM-EL.

[8] In Suit 524, what remained for trial was the JMB's (10th Defendant in Suit 524) counterclaim against AM-EL (the 2nd Plaintiff in Suit 524). This counterclaim was for several injunctions for the delivery up of information and accounts for monies collected by AM-EL from the Purchasers. There was also a claim for payment of RM675,000.00, allegedly monies collected for SRC's sinking fund.

[9] As the 1st, 2nd and 3rd Defendants do not feature in the counterclaim in Suit 524 they will continue to be referred to as the 1st, 2nd, 3rd Defendants ie 1st, 2nd, 3rd Defendants in Suit 128.

[10] It is also convenient at this juncture to refer to Tempamas Sdn Bhd. Tempamas Sdn Bhd was the developer of SRC. As the developer of SRC, it features somewhat prominently in this case. Tempamas Sdn Bhd will hereinafter be referred to as the "Developer".

[11] The Developer was however not made a party to this action as it has been wound up. It was wound up on 14th December 2011.

The Claims

[12] In Suit 128, the JMB's claims against the Defendants were for several declarations to recover monies collected by the Developer through AM-EL, and subsequently by AM-EL itself, from the Purchasers. These claims were predicated upon contentions that the monies collected were trust property in the hands of AM-EL. There were also allegations of fraud against the Defendants in respect of the collections from the Purchasers and in the applic