2011 MarsdenLR 1395

PRASAD SANDOSHAM ABRAHAM
LAI KING LUNG – Appellant
Versus
PERBADANAN PENGURUSAN ANJUNG HIJAU & ANOR – Respondent

House rules by management corporations must comply with statutory by-laws; those not established under the relevant legislation are ultra vires.

Headnote:(A) Strata Titles Act 1985 (Act 318) - Sections 44(1) & (2), 35(2), (4) - The validity of house rules in relation to the management of an apartment - The court found that the house rules were ultra vires the Act, as they were issued by a developer and not adopted by the management corporation as required. (Paras 2, 5, 12)

(B) Common Property Management - The court emphasized the need for rules governing condominium living to ensure order and fairness among residents, stating that management corporations have discretion to create house rules for operational efficiency. (Paras 6, 10)

Facts of the case:
The plaintiff, a registered unit holder, alleged that the 1st defendant management corporation trespassed and removed an air-conditioning compressor from the plaintiff's unit based on purported house rules prohibiting such placement. The plaintiff contended that these rules were not valid under the Strata Titles Act 1985.

Findings of Court:
The house rules were deemed invalid as they were not made by the management corporation but were set forth by the developer prior to the corporation's establishment. These rules could not be enforced as they contradict the provisions of the governing legislation.

Issues: The court addressed whether the house rules were valid considering they were not properly established under the Strata Titles Act.

Ratio Decidendi: The house rules cannot conflict with the statutory by-laws of the Strata Titles Act 1985, and adherence to the procedural requirements for establishing valid by-laws is essential for lawful governance of condominium properties.

Result: The court declared the house rules ultra vires and directed the management corporation to establish valid regulations.