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2024 MarsdenLR 1802
COURT OF APPEAL PUTRAJAYA
AUM CAPITAL SDN BHD – Appellant
Versus
MENARA UOA BANGSAR MANAGEMENT CORPORATION – Respondent
[Civil Appeal N0: W-02(IM)(NCVC)-1651-09-2022]
The Management Corporation is statutorily obligated to maintain common property, including Centralised Air-Conditioning Facilities, regardless of individual parcel owners' usage, and cannot seek reimbursement for maintenance costs.
Headnote:(A) Strata Management Act 2013 – Sections 2 and 59 – Strata Titles Act 1985 – Section 43 – Appeal against High Court decision regarding maintenance of Centralised Air-Conditioning Facilities (CACF) – Management Corporation held statutorily bound to maintain CACF as common property, including bearing associated costs – Questions of law addressed included definition of common property and obligations of the Management Corporation. (Paras 1-4, 35-54)
(B) Common Property – Definition of common property under Strata Titles Act 1985 and Strata Management Act 2013 clarified – Management Corporation's duty to maintain common property extends to facilities benefiting multiple parcels, irrespective of individual usage. (Paras 26-30, 51-52)
Facts of the case: AUM Capital appealed against the High Court's ruling that the Management Corporation must maintain the CACF at its own expense, asserting that the costs should be reimbursed by private parcel owners benefiting from the CACF. (Paras 2-4)
Findings of Court: The Management Corporation is required to maintain the CACF as it constitutes common property, and it is entitled to use maintenance funds for this purpose. (Paras 35-36)
Issues: The main issues included whether the CACF is common property and if the Management Corporation is obligated to seek reimbursement for maintenance costs. (Paras 1-5)
Ratio Decidendi: The court affirmed that common property is defined by location, not by the extent of benefit to individual parcel owners, and the Management Corporation has a statutory duty to maintain such property. (Paras 51-52)
Result: Appeal dismissed with costs.
JUDGMENT
(A) Introduction
[1] This appeal is against the decision of the High Court on 5 August 2022 in allowing the Management Corporation's (Respondent) application for preliminary determination of questions of law under O 14A and/or O 33 r 2 of the Rules of 2012 ("Order 14A Application").
[2] The subject matter of the High Court Suit filed by AUM Capital (Appellant) (a parcel proprietor in Menara UOA Bangsar) against the Management Corporation (of Menara UOA Bangsar) is whether the Management Corporation should maintain the Centralised Air-Conditioning Facilities ("CACF") at its own expense, including bearing the electricity and maintenance costs thereof.
[3] There were 5 questions of law put forward before the High Court. Questions 1 and 2 were proposed by the Management Corporation, while Questions 3 to 5 were proposed by AUM Capital as follows:
QUESTION 1. (MANAGEMENT CORPORATION)
Whether components of the Centralised Air-Conditioning Facilities, which are not comprised in any individual parcel of Menara UOA Bangsar, form part of the "common property" of Menara UOA Bangsar as defined under s 2 of the Strata Management Act, 2013 ("2013 Act"), even if the utility or benefit of the Centralised Air-Conditioning Facilities accrues in part to one or more proprietors and/or occupiers of private parcels.
QUESTION 2. (MANAGEMENT CORPORATION)
If the answer to Question (1) is in the affirmative, whether the statutory duty imposed by s 59(1)(a) of the 2013 Act on the Defendant (Management Corporation), as the Management Corporation of Menara UOA Bangsar, to properly maintain and manage the common property and keep the same in a state of good and serviceable repair, requires the Defendant (Management Corporation) to bear the costs and expenses of operating and maintaining the Centralised Air-Conditioning Facilities, including the electricity and maintenance costs thereof.
QUESTION 3. (AUM CAPITAL)
Whether the Defendant (Management Corporation) is empowered under the relevant laws (including the 2013 Act) and obliged to seek full reimbursement from the private parcel owners of Tower B, having incurred the costs and expenses of maintaining the Centralised Air-Conditioning Facilities, including the electricity and maintenance costs thereof, solely for the benefit of a particular private parcel owner, namely, UOA REIT, in respect of the Centralised Air-Conditioning Facilities within Tower B of Menara UOA Bangsar.
QUESTION 4. (AUM CAPITAL)
Whether the Defendant (Management Corporation) is negligent in failing to seek full reimbursement from the private parcel owners of Tower B, having incurred the costs and expenses of maintaining the Centralised Air-Conditioning Facilities, including the electricity and maintenance costs thereof, solely for the benefit of a particular private parcel owner, namely, UOA REIT, in respect of the Centralised Air-Conditioning Facilities within Tower B of Menara UOA Bangsar.
QUESTION 5. (AUM CAPITAL)
In the event the answer to Questions 1 and/or 2 above is the affirmative, the Defendant (Management Corporation) shall take all necessary steps to determine the sum for a full reimbursement of the costs and expenses of maintaining the Centralised Air-Conditioning Facilities, including the electricity and maintenance costs thereof against DATS Management Sdn Bhd and/or Desa Bukit Pantai Sdn Bhd and/or Peninsular Home Sdn Bhd and/or UOA Asset Management Sdn Bhd and/or RHB Trustee, taking into account the duration and amount of the expenses involved, and setting off the contribution made by UOA REIT, if any.
[4] The High Court decided the case in favour of the Management Corporation (Respondent), answering the Questions 1 and 2 in the affirmative and Questions 3 to 5 in the negative.
(B) Factual Background
[5] The Management Corporation of Menara UOA Bangsar is a body corporate established on 5 June 2013 pursuant to s 171 of the Strata Titles Act 1985 .
[6] AUM Capital is the registered proprietor of 1 of t
