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2025 MarsdenLR 1876
HIGH COURT MALAYA KUALA LUMPUR
ATTANA SCOTTS PROPERTIES (KL) SDN. BHD. – Appellant
Versus
KIRANA MANAGEMENT CORPORATION – Respondent
[Civil Suit No: WA-22NCvC-449-08/2020]
A developer must legally hand over management of a building to the management corporation as mandated by the Strata Management Act 2013, any claims to the contrary are unenforceable.
Headnote:(A) Strata Management Act 2013 - Sections 52, 55, and 59 - Property dispute regarding management of a mixed-development building - Plaintiff failed to maintain Menara A after handover - Mutual agreement claimed by Plaintiff found unenforceable and unsupported by evidence - Plaintiff held liable for maintenance fees. (Paras 130, 131)
(B) Breach of statutory obligation - Developer must hand over control to Management Corporation as per law - Plaintiff's retention of management violates Strata Management Act - Financial claims by Plaintiff deemed unauthorized. (Paras 27, 28, 60)
Facts of the case:
The Plaintiff, as a property developer, failed to hand over full control of Menara A to the Defendant, the management corporation, as required by law, while continuing to manage the building. The Defendant counterclaimed for maintenance fees owed by the Plaintiff for multiple years. (Paras 130, 131)
Findings of Court:
The court found the Plaintiff in violation of the Strata Management Act 2013 for retaining management of Menara A and dismissed the Plaintiff's claim while allowing the Defendant's counterclaim. (Paras 27, 131)
Issues: Main issues included whether the Plaintiff had violated the Strata Management Act and whether the alleged mutual agreement between the parties was legally enforceable. (Paras 130, 131)
Ratio Decidendi: The court held that the Plaintiff, as the developer, had a statutory obligation to hand over management to the Defendant and their failure to do so created a breach of law; claims for expenses without approval were invalid. (Paras 60, 70)
Result: Plaintiff's claim dismissed; Defendant's counterclaim allowed with relief granted. (Paras 130, 131)
| Table of Content |
|---|
| 1. dispute on management responsibilities and ownership (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19) |
| 2. arguments for mutual agreement and expenses (Para 20 , 21 , 22 , 23) |
| 3. defendant's claims against plaintiff (Para 24 , 25) |
| 4. witness testimonies elucidate control handover (Para 26 , 27 , 28) |
| 5. plaintiff's failure to meet statutory obligations (Para 29 , 30 , 31 , 32 , 33 , 34 , 35) |
| 6. continuous control over menara a by plaintiff (Para 36 , 37 , 38 , 39 , 40) |
| 7. legal implications of mutual agreement (Para 41 , 42 , 43 , 44 , 45) |
| 8. assertion of absence of mutual agreement (Para 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54) |
| 9. social implications of staggered legislative provisions (Para 55 , 56 , 57 , 58 , 59 , 60) |
| 10. plaintiff's misrepresentation of responsibilities (Para 61 , 62 , 63) |
| 11. burden of proof regarding expenses (Para 64 , 65) |
| 12. rejection of plaintiff's argument of unauthorized expenses (Para 66 , 67 , 68 , 69) |
| 13. determination of legal and unauthorized claims (Para 70 , 71) |
| 14. conclusion on maintenance charges (Para 72 , 73 , 74 , 75 , 76) |
| 15. implications of unauthorized financial interventions (Para 77 , 78 , 79 , 80 , 81 , 82) |
| 16. responsibilities of plaintiffs regarding payments (Para 83 , 84 , 85 , 86 , 87 , 88 , 89 , 90) |
| 17. clarification of financial obligations under law (Para 91 , 92 , 93 , 94 , 95) |
| 18. evaluation of plaintiff's claims for debts (Para 96 , 97 , 98 , 99 , 100) |
| 19. consequences of default on voting rights (Para 101 , 102 , 103 , 104 , 105) |
| 20. contention of resolutions and agm participation (Para 106 , 107 , 108 , 109 , 110 , 111 , 112) |
| 21. overall implications of improper payments (Para 113 , 114 , 115 , 116 , 117 , 118 , 119) |
| 22. final resolutions regarding unjustified financial claims (Para 120 , 121 , 122 , 123 , 124 , 125 , 126 , 127) |
| 23. conclusion of claims and reasoning (Para 129 , 130 , 131) |
(After Trial)
Introduction
[1] This case delves into a legal battle between a property developer and the management corporation of a condominium as the dispute lies in the ongoing disagreement over the maintenance and management of a mixed-development building comprising of two towers.
Brief Facts Of The Case
[2] The Plaintiff is a developer of a mixed development building held under Lot No 1271, s 57 Geran 42678, Bandar Kuala Lumpur which comprises of The Ascotts KL ("Menara A") and Kirana Condominium ("Menara B") (collectively referred as "the Property").
[3] The Plaintiff owns 73,855 share units in both Menara A and Menara B whilst the other owners collectively own 23,619 share units in both Menara A and Menara B, this makes the Plaintiff a significant majority.
[4] The Plaintiff is also the registered proprietors for 226 parcel units in Menara A and 1 unit located in Menara B.
[5] Meanwhile, the Defendant is the management corporation ("MC") of Kirana Condominium which was incorporated under the Strata Titles Act 1985 ("STA 1985") registered on 6 January 2006.
[6] After the Defendant held its first Annual General Meeting ("AGM") on 5 December 2009, the Plaintiff handed over the maintenance and management of Menara B to the Defendant effectively on 1 February 2010.
[7] Throughout the whole period from the Defendant's incorporation up to date, the Plaintiff had been maintaining and managing Menara A, whilst the Defendant had been maintaining Menara B.
[8] The Plaintiff alleged that both parties proceeded with the arrangement and understanding ("the Mutual Agreement") that the Plaintiff shall be responsible for managing Menara A whilst the Defendant shall be responsible for managing Menara B.
[9] At all material times, it is a known fact that apart from two penthouse units which were sold to private individuals, the Plaintiff operates and manages a serviced apartment business for the parcel units owned by the Plaintiff in Menara A.
[10] In May 2010, the Plaintiff surrendered a parcel unit together with several accessory
