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2016 MarsdenLR 1350

HIGH COURT MALAYA KUALA LUMPUR
PRIMA AVENUE AND DPC (BLOCK G H 1) MANAGEMENT CORPORATION – Appellant
Versus
PUNCAK KENCANA SDN BHD & ORS – Respondent
[Civil Suit No: 22NCVC-537-11/2014]



The Joint Management Body retains locus standi until its dissolution post first AGM of the Management Corporation as per statutory framework governing strata titles.

Headnote:This case examines the jurisdiction of the Joint Management Body (JMB) to claim ownership of common property, specifically car park bays, post-establishment of the Management Corporation (MC) under the Building and Common Property (Maintenance and Management) Act 2007 (Act 663) and the Strata Titles Act 1985 (Act 318). The court finds that the JMB retains its standing until its dissolution after the first AGM of the MC, and the substantive issues relate to the definition of 'common property' under the BCP (M&M) Act 2007, the applicability of said Act to certain agreements, and the lack of locus standi pointed out by the defendants. The verdict favors the plaintiff, affirming the necessity for all related claims and responsibilities to be resolved under the authority of the newly established MC post-AGM, with costs awarded accordingly.

Table of Content
1. plaintiff filed suit for declaratory relief regarding property rights. (Para 1 , 2 , 3 , 4)
2. the jmb's claim for common property. (Para 5)
3. jurisdiction of jmb and mc. (Para 6 , 9 , 16 , 30)
4. court considers locus standi and substitution of parties imperative. (Para 42 , 43)
[1] On 22 December 2014, the plaintiff filed this suit vide a writ of summons dated 22 December 2014 ("the writ") and a statement of claim dated 22 December 2014, through its solicitors, namely, M/s MahWengKwai & Associates, against the 1st, 2nd, 3rd and 4th defendants, to claim for various declaratory reliefs arising, inter alia, from the sale and purchase agreements for the car park bays, which were entered into between the 1st and 2nd defendants, to transfer ownership of 60 accessory parcels of car park bays in Blocks G, H and I of Dataran Prima Fasa 1 ("the 1st development") and 1,311 accessory parcels of car park bays ("the 1,311 car park bays") at levels 2, 3 and 3A of Prima Avenue ("the 2nd development").

[2] Subsequently, the plaintiff amended the writ and statement of claim vide the Order of the Court of Appeal dated 29 February 2016.

[3] On 7 March 2016, the plaintiff filed the amended writ, enclosure (246), and the amended statement of claim, enclosure (247). In the endorsement on the amended writ and in para 58 of the amended statement of claim, the plaintiff prays for, inter alia, the following declaratory orders:

(1) That the accessory parcels of car park bays totalling 1,371 ("the 1,371 car park bays") be declared as the common property of the 1st and 2nd developments ("the two developments"), respectively, and that the sale and purchase agreements for the car park bays be declared null and void;

(2) That any agreement which was entered into between the 1st defendant, the 2nd defendant, the 3rd defendant and/or the 4th defendant and any other third party involving the 1,371 car park bays and also all the motorcycle bays be declared null and void;

(3) That the 1st defendant acting through its directors, employees, agents and all successors-in-title be ordered to hand over vacant possession of the 1,371 car park bays on the ground floor of the 2nd development, all the motorcycle bays in and around the 2 developments, the open spaces in the two developments and also the 8 hawker lots in the 2nd development to the plaintiff, as the common property of the two developments, within 7 (seven) days from the date of the service of the sealed copy of the judgment of the Court;

(4) For an order that the 1st defendant acting through its directors, employees, agents and all successors-in-title be ordered to supply to the plaintiff a copy of each of the sale and purchase agreements, which were entered into between the 1st defendant and the purchasers of the units in Dataran Prima Fasa 1 (Blocks G, H and I) and Prima Avenue, for the effective management of the two developments and for the collection of the maintenance charges under the Building and Common Property (Maintenance and Management) Act 2007 ("the BCP (M&M) Act 2007 (Act 663)"); and

(5) That the 1st to the 3rd defendants be held, jointly and severally, liable to pay to the plaintiff general damages to be assessed by the Registrar of the High Court on the basis of the income that the 1st, 2nd and/or 3rd defendants had received from the operation of or letting of the 1,371 car park bays to the 4th defendant or any previous tenant/car park operator at all material times until the delivery of vacant possession of the 1,371 car park bays less only the expenses incurred and proven by the 1st, 2nd and 3rd defendants for electricity, water, cleaning, repairs and maintenance charges directly in connection with the letting of the 1,371 car park bays but not including any financing costs or interest incurred by the 2nd and/or 3rd defendants in its purported purchase of the 1,371 car park bays.

Parties In The Suit

[4] The parties in the suit are as follows:

(1) Badan Pengurusan Bersama Prima Aven

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