The Joint Management Body of a condominium can lawfully impose different maintenance charges for various unit types as mandated by an Annual General Meeting.

[1] The question that arises for consideration in this originating summons dated 26 January 2018 ("the OS") is whether it is lawful for the owners of a condominium to pass a resolution at an Annual General Meeting ("AGM") to authorise the joint management body ("JMB") for the condominium to fix H different rates of payment for maintenance charges for the residential units, retail and car-park units and whether the imposition of different rates for maintenance charges is contrary to the provisions in the Strata Management Act 2013 (" SMA 2013").

The Background

[2] The plaintiff is a residential unit owner of a condominium project known as Menara Rajawali, which consists of residential units, retail shop units and car park units. The share units for all the units in Menara Rajawali were duly allocated in accordance with the provisions of the SMA 2013. The first defendant ("D1") is the joint management body for Menara Rajawali. B Hereafter, I shall refer to D1 as "the JMB". The JMB is run by an executive committee known as the Joint Management Committee ("JMC"). The second defendant ("D2") is the owner of all the car-park units in Menara Rajawali. The shareholders of D2 are Tiong Boon Keong, Yap Eng Yeow and Lee Chun Yew ("the shareholders"). All the shareholders of D2 are also members of the JMC.

[3] In the AGM of the unit owners of Menara Rajawali, held on 25 June 2016 it was unanimously resolved that the mandate be given to the JMC to fix the maintenance fee for the residential units and retail shop units at a rate not exceeding RM3.26 per share unit.

[4] In the same AGM, it was also resolved that the mandate be given to the JMC to fix maintenance charge for car-park units at a rate not exceeding RM1.68 per share unit which is half of the rate that was applicable to the residential units and retail shop units. The minutes of the AGM read as follows:

... AC informed that the Charges and sinking fund will need to determined based on the share unit instead of the land area of the units, pursuant to the SMA 2013. The share units were being determined by the land surveyor who had submitted the application to the land office on 3 March 2015.

The proposed maintenance Charges and sinking fund are:

It was resolved by the Meeting that the management committee is given a mandate to deliberate on the maintenance charges for residential and retail shop units where the amount of Charges shall be not more than RM3.26/share unit and the contribution to sinking fund shall be 10% of the maintenance charges.

It was also resolved that the joint management committee is given a mandate to deliberate on the maintenance charges for car park where the Charges shall be not more than RM1.68/share unit. The sinking fund shall be 10% of the Charges.

Those present have unanimously agreed to give mandate to the joint management committee to decide on the rate of Charges based on the above that have been resolved. There was no vote against it and the agenda was passed.

[5] The plaintiff attended the AGM had also offered himself as chairman for the meeting. According to D1, at the third Committee Meeting of the JMC held on 12 August 2016 (exh. RP2, encl 5) the JMC had decided to impose the maintenance charges at the rate of RM2.80 per share unit for residential/retail units, and RM1.68 per share unit for the car park (see: paras 15 and 16, encl 5).

[6] The plaintiff's position is that by virtue of ss 8, 12, 21, 25 and First Schedule of SMA 2013, D1 is not permitted to charge two different rates per share unit for different categories of owners. Accordingly, the plaintiff contends that the resolutions of the AGM, allowing the JMC to charge a lower rate for car park units is ultra vires in law and hence, a nullity ab initio.

[7] The plaintiff also contends that the shareholders of D2 have abused and misused their positions in the JMC by acting according to their own interes