Developer must comply with statutory obligations to maintain and transfer common property to the Joint Management Body, and failure to do so renders their strata titles defeasible.

JUDGMENT

(After Trial)

Wong Kian Kheong J:

A. Introduction

[1] This judgment concerns a mixed development project in a "development area" [as understood in s 2 of the Building and Common Property (Maintenance and Management) Act 2007 (BCPA)] in Petaling Jaya, Selangor, known as "Centrestage" [Development Area (Centre stage)].

[2] BCPA has now been repealed by the Strata Management Act 2013 ( SMA ) but the material facts in this case arose before the enforcement of . Hence, the application of BCPA in this case.

B. Background

[3] The 1st defendant company (1st Defendant) was:-

(1) the original registered proprietor of two lots of 99 years leasehold land (Lands) held under the following titles:-

(a) PN 101555, Lot 3, s 13, Petaling Jaya Town, Petaling Jaya District, Selangor, measuring approximately 9,289 square metres (sm); and

(b) PN 101556, Lot 72, s 13, Petaling Jaya Town, Petaling Jaya District, Selangor, measuring approximately 5,536 sm.

The Development Area (Centrestage) is situated on the Lands; and

(2) a "developer" (as defined in s 2 BCPA) of the Development Area (Centrestage).

[4] On 24 June 2010, the local authority in this case, Majlis Bandaraya Petaling Jaya (MBPJ), granted "planning permission" for the 1st Defendant to develop the Development Area (Centrestage) (Development Order).

[5] The 1st Defendant's building plans for the Development Area (Centrestage) had been approved by MBPJ on 26 April 2011 [Approved 1st Defendant's Building Plans (26 April 2011)]. According to the Approved 1st Defendant's Building Plans (26 April 2011), the 1st Defendant would build 1,141 ordinary car park bays and 20 "Orang Kurang Upaya" (OKU) car park bays.

[6] According to the 1st Defendant's marketing brochure of the Development Area (Centrestage) (1st Defendant's Marketing Brochure), upon the completion of the Development Area (Centrestage), the Development Area (Centrestage) would consist of:

(1) two blocks of "SOHO" (Small Office/Home Office) designer suites of 11 and 14 storeys (totaling 789 units);

(2) one block of serviced apartments of 11 storeys (with 352 units) on top of a six-storey podium (Podium); and

(3) the Podium would comprise-

(a) five storeys of shop lots (158 units);

(b) commercial lots;

(c) four levels of car park bays; and

(d) two levels of basement.

[7] The 1st Defendant sold "parcels" (as defined in s 2 BCPA) of SOHO, serviced apartments and retail/shop lots (referred collectively in this judgment as "Parcels") in the Development Area (Centrestage) to purchasers (Purchasers). With regard to the Parcels, the Purchasers had executed the following two agreements with the 1st Defendant:

(1) Sale and Purchase Agreements (SPAs); and

(2) Deed of Mutual Covenants (DMCs).

The SPAs and DMCs had identical definitions of "common property" [Common Property Definition (SPAs and DMCs)] and "strata plan" [Strata Plan Definition (SPAs and DMCs)] as follows:-

""Common Property" in relation to the [Development Area (Centrestage)], means so much of the [Development Area (Centrestage)] as in not comprised in any parcel (including accessory parcels), such as the structural elements of the buildings, stairs, stairways, fire escape, entrances and exits, corridors, lobbies, fixtures and fittings, lifts, refuse chutes, refuse bins, drains, water tanks, sewers, pipes, wires, cables and ducts that serve more than one parcel, and all other facilities and installations and any part of the [Lands] used or capable of being used or enjoyed in common by all the occupiers of the Said Building, as shown in the Strata Plan.

"Strata Plan" means a location plan and a storey plan which includes a plan of division or amalgamation of any parcels shown in the Strata Plan approved by the Appropriate Authority."

[Emphasis Added]

[8] The 1st Defendant submitted amended building plans for the Development Area (Centrestage), which were approved by MBPJ on 10 April 2013 [Approved 1st Defendant's Amended Building Plans (10 April 2013)]. The Approved 1st Defendant's Amended Building P