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2025 MarsdenLR 5098

HIGH COURT MALAYA KUALA LUMPUR
JMB MASKIARA RESIDENCES – Appellant
Versus
INTAN PERMATA PROPERTIES SDN BHD (ENCLS 17 50 53 63 67 70 73 & 86) – Respondent
[Suit No: WA-22NCvC-371-07/2020]



Petitioner Advocates:R Thanasegar,Banusha Narenthiran ,Respondent Advocate: Ho Zhi Vee

The court established that claims for maintenance charges constitute a running account, hence not barred by limitation, entitling the management corporation to recover unpaid sums from the developer.

Headnote:(A) Building and Common Property (Maintenance and Management) Act 2007 - Section 21(2); Strata Management Act 2013 - Sections 25, 34, and 105(2); Limitation Act 1953 - Section 6(1)(d) - Claim for maintenance fees, sinking fund, and late payment interest amounts to RM1,070,461.15 - Plaintiff's claim based on the 2012 Share Unit Calculation is valid and not time-barred as it constitutes a running account, while the Defendant is liable for outstanding charges relating to sold units. (Paras 30, 35, 56)

(B) Statutory obligations - The Joint Management Body is entitled to collect maintenance and additional fees from parcel owners under the Strata Management Act and is not limited by the limitations prescribed for ordinary contracts. (Paras 28, 30)

(C) Share Unit Calculation - Plaintiff's calculations are justified as per the 2012 Share Unit Calculation, with necessary rates stipulated under the Strata Management Act. (Paras 37, 45)

Facts of the case:
The Plaintiff, a management corporation, claims RM1,070,461.15 against the Defendant for unpaid statutory charges related to 67 strata units in Maskiara Residences, asserting part of the claim is time-barred and that the Defendant disputes the calculation. (Paras 2, 3, 5)

Findings of Court:
The Court found the Plaintiff's claims valid, ruling that the claim is not barred by limitation and the Defendant is liable for outstanding charges regarding the sold units. (Paras 56)

Issues: The main issues addressed include whether the Plaintiff's claims are based on a running account and the applicability of the Limitation Act to the Plaintiff's claims for charges prior to a specified date. (Paras 15, 31)

Ratio Decidendi: The Court held that maintenance charges constitute a running account and therefore are not time-barred by the Limitation Act. It affirmed the validity of the 2012 Share Unit Calculation while emphasizing the Defendant's obligations under the relevant Acts. (Paras 30, 35, 56)

Result: The Plaintiff's claims are allowed with costs of RM20,000.00.

Table of Content
1. application related to outstanding statutory charges. (Para 1 , 2 , 3 , 4)
2. key issues for determination and implications for claims. (Para 5 , 6 , 22)
3. procedure under order 33 roc for time-efficient trials. (Para 8 , 10 , 35)
4. applicability of limitation act for maintenance charges. (Para 14 , 15 , 16 , 18 , 20)
5. duties of parties regarding maintenance and sinking fund. (Para 27 , 28 , 29)
6. calculation and legitimacy of late payment interest. (Para 34 , 51 , 54)
7. final judicial decisions and orders. (Para 55 , 56)
Eddie Yeo Soon Chye JC

(Enclosure 50: Notice of Application under O 33 Rules of Court 2012)

[1] This is an application by the Defendant under O 33 Rules of Court 2012 whereby the Court may order any question or issue arising in a cause or matter whether of fact or law or partly of fact and partly of law, and whether raised by pleadings or otherwise, to be tried before, at or after the trial of the cause or matter, and may give directions as to the manner in which the question or issue shall be stated.

[2] The Plaintiff's (JMB Maskiara Residences) claim against the Defendant is in relation to the Defendant's (Intan Permata Properties Sdn Bhd.) failure to settle statutory charges including maintenance fees, sinking fund and late payment interest charges for its respective parcels located within a stratified property (Maskiara Residences) amounting to RM1,070,461.15 as of 15 January 2020.

BACKGROUND

[3] The Plaintiff is the management corporation of a stratified development (Maskiara Residences) in Taman Tun Dr Ismail, Kuala Lumpur. The Plaintiff was incorporated on 22 June 2013 pursuant to the Building and Common Property (Maintenance and Management Act 2007 (Act 663). The Plaintiff is a statutory body charged with the duties and powers under the Strata Management Act 2013 to manage Maskiara Residences.

[4] The Defendant is a company registered under the Companies Act 1965 and carries a business as a property investment company. The Defendant is the developer of Maskiara Residence and managed Maskiara Residence during the developer stage until 22 June 2013.

Enclosure 50

[5] The brief grounds to support encl 50 are as follows-

(a) the Plaintiff is claiming for the purported outstanding maintenance fees, sinking funds, and late payment interests for 67 strata units at the Maskiara Residences amounting to RM1,070,461.15 as of 15 January 2020;

(b) while the Defendant does not deny that there are outstanding maintenance fees and sinking funds owing to the Plaintiff, the Defendant disputes the quantum claimed by the Plaintiff in this suit for the following reasons-

(i) part of the Plaintiff's claim is time barred under Act 254;

(ii) part of the Plaintiff's claim contravenes s 8(2) of Act 757;

(iii) the Plaintiff has wrongfully claimed for maintenance fees and sinking funds in relation to units that have already been sold out and no longer belong to the Defendant;

(iv) the Plaintiff's calculation for late payment charges is wrong; and

(c) a determination of the Questions would save time and expenditure and would have the effect of substantially dispose of the matter without the necessity of a full trial.

[6] The list of agreed questions as reflected in Enclosure 86 (exhibited in NCO-11) 3rd Affidavit in Reply of the Defendant filed by Tan Sri Dato' Wira Ng Chen Onn outlined as follows:

Issues Pertaining to the Applicability of the Limitation Act 1953 .

(a) Whether the Plaintiff's claim for the maintenance charges, sinking fund and late payment interest amounting to RM1,070,461.15 as at 15 January 2020 is based on a running account? In the event the answer is in the affirmative does Act 254 apply to running accounts?

(b) Whether the Plaintiff's claim prior to 15 January 2014 is barred by s 6(1)(d) of Act 254? In the event the answer is in the affirmative, should the Plaintiff's claim prior to 15 January 2014 be struck out with costs?

(c) Whether s 105(2) of Act 757 equally applies to proceedings in a Court of compet

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