The Joint Management Body loses legal standing upon the establishment of the Management Corporation, preventing it from claiming ownership of common property.

[1] There were 4 Appeals heard together before this Court on 13 February 2018, namely:-

(1) Appeal No 1, ie W-02(IM)(NCVC)-1857-10/2016;

(2) Appeal No 2, ie W-02(IM)(NCVC)-1859-10/2016;

(3) Appeal No 3, ie W-02(IM)(NCVC)-1860-10/2016; and

(4) Appeal No 4, ie W-02(IM)(NCVC)-1861-10/2016.

[2] For ease of reference, the parties in this Judgment will be referred to according to the parties in the suit in the High Court.

Background Facts

The Parties

[3] The Plaintiff is Badan Pengurusan Bersama Avenue and DPCC Phase 1 (Blocks G, H, I). It is the Joint Management Body ("JMB") for Dataran Prima Phase 1 ("1st development") and Prima Avenue ("2nd development") (both referred to as "the 2 developments"). The Plaintiff was established on 11 March 2012 under the Building and Common Property (Maintenance and Management) Act 2008 ("BCP Act").

[4] The 1st Defendant is Puncak Kencana Sdn Bhd. The 1st Defendant is the registered owner of the piece of land on which the 2 developments are constructed.

[5] The 2nd Defendant is Park Access Sdn Bhd. The 2nd Defendant is the owner of the 60 car park bays in the 1st development. The 2nd Defendant had purchased the 60 car park bays together with an office unit in the 1st development from the 1st Defendant on 26 July 2011 vide a Sale and Purchase Agreement ("SPA") ("SPA 1"). The 2nd Defendant also purchased an office unit in the 2nd development together with 1,311 car park bays and some equipment vide another SPA ("SPA 2") dated 26 July 2011.

[6] On 26 July 2011, by 2 Deeds of Assignment entered between the 1st Defendant and the 3rd Defendant on 26 July 2011 and 2 Letters of Nomination dated 16.11.2011, the 1st Defendant assigned all its rights, title, interests and benefits in and to the properties stated in the SPA 1 and SPA 2, including the said car park bays to Topcode Marketing Sdn Bhd, ie the 3rd Defendant.

[7] With effect from 1 February 2012, the 2nd Defendant purported to sell and/or transfer the ownership of the car park bays of the 2 developments to the 3rd Defendant. The Plaintiff avers that the 3rd Defendant is holding and managing the total of 1,371 car park bays in and around the 2 developments on trust for the Plaintiff.

[8] The 4th Defendant is Prominent Excel Sdn Bhd. The 4th Defendant is the present and apparent car park operator and has continued to charge all owners and visitors for use of the car park bays.

The Plaintiffs Claim

[9] In its Amended Statement of Claim, paragraph 58, the Plaintiff prays for 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 respectively, and that the SPAs 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 1 st 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 2 developments and also the 8 hawker lots in the 2nd development to the Plaintiff, as the common property of the 2 developments, within 7 days from the date of service of the sealed copy of the judgm