The management corporation has a statutory right to intervene in ongoing litigation post-dissolution of the joint management body, ensuring effective resolution of disputes regarding common property.

JUDGMENT

(Court Enclosure No 354)

Wong Kian Kheong JCA:

A. Introduction

[1] This judgment discusses a novel issue of whether in the midst of a trial of a suit filed by a Joint Management Body (JMB) of a "development area" (Development Area) [as understood in s 2 of the Strata Management Act 2013 ( SMA )] against the developer of the Development Area, upon the subsequent establishment of the management corporation (MC) of the Development Area, can the MC apply to Court for, among others, leave to intervene as the 2nd plaintiff in the suit? This question depends on an interpretation of ss 21(1)(a), (e), (i), (2)(c), (e) to (h), 28(2), 59(1)(a), (i), (2)(j) and (7) read with ss 17B(1) and 73 of the Strata Titles Act 1985 ( STA ).

B. Background

[2] In this case, the plaintiff is the JMB of a Development Area in Ara Damansara, Selangor known as "Aragreens Residences" [JMB (Aragreens Residences)].

[3] The JMB (Aragreens Residences) had filed this suit (This Suit) against the developer of Aragreens Residences (Defendant). The Defendant is now under a voluntary winding up and is represented by its liquidator (Liquidator).

[4] In This Suit, the JMB (Aragreens Residences) had alleged that the Defendant was negligent in the construction and provision of certain common property in Aragreens Residences [Common Property (Aragreens Residences)].

[5] The trial of This Suit (Trial) had commenced and before the conclusion of the Trial-

(1) on 10 May 2019, the Selangor Director of Lands and Mines issued a certificate which certified that the MC of Aragreens Residences [MC (Aragreens Residences)] is a body corporate constituted under s 17(3) STA ; and

(2) the Defendant convened the first annual general meeting (AGM) of the MC (Aragreens Residences) on 24 September 2022 {1st AGM [MC (Aragreens Residences)]}. The Management Committee of the MC (Aragreens Residences) had been elected at the 1st AGM [MC (Aragreens Residences)].

[6] According to s 27(1) SMA , the JMB (Aragreens Residences) "shall dissolve" on 24 December 2022, three months from the date of the 1st AGM [MC (Aragreens Residences)].

C. Application By MC (Aragreens Residences)

[7] In Court Enclosure No 354 (Encl 354), MC (Aragreens Residences) had applied to the Court for the following orders, among others:

(1) leave of Court for the MC (Aragreens Residences) to intervene in This Suit as the 2nd plaintiff (Intervention Application);

(2) if the Court allows the Intervention Application, the Court should allow the writ and statement of claim of This Suit (Writ and SOC) to be amended so as to reflect the MC (Aragreens Residences) as the 2nd plaintiff in This Suit (Amendment Application); and

(3) an order that all the cause papers filed in This Suit shall be deemed to have been amended to reflect the amended Writ and SOC.

D. Contentions By Parties

[8] Mr Andrew Chiew Ean Vooi, learned counsel for the Liquidator, had objected strenuously to Encl 354. In his objection, Mr Andrew Chiew had made the following far-reaching submission:

(1) This Suit was a "representative action" or "class action" (Representative/Class Action) against the Defendant by the JMB (Aragreens Residences) on behalf of all the owners of parcels in Aragreens Residences [Parcel Owners (Aragreens Residences)] within the meaning of s 143(2)(B) SMA ;

(2) upon the dissolution of the JMB (Aragreens Residences) under s 27(1) SMA :

(a) This Suit was not "vested" in the MC (Aragreens Residences) pursuant to s 28(2) SMA . This is because, according to Mr Chiew, s 28(2) in Part IV does not apply to This Suit which is a Representative/Class Action (in Part V ); and

(b) This Suit had "abated" and become a "non-existing action" or "nullity".

On the above grounds alone, according to Mr Andrew Chiew, Encl 354 should be dismissed. In support of this contention, Mr Andrew Chiew had cited a host of cases decided in Malaysia, New Zealand, United Kingdom, Singapore and Australia;

(3) a joinder application in This Suit by the MC (Aragreens Residences) "woul