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HIGH COURT (KUALA LUMPUR)
AMELIA TEE HONG GEOK BT ABDULLAH, J
Muafakat Kekal Sdn Bhd & Anor – Appellant
Versus
Pesuruhjaya Bangunan Majlis Bandaraya Petaling Jaya & Anor – Respondent
GUAMAN NO 22NCVC-1122-11/2011



The court affirmed the validity of the AGM held on 11.9.2011 despite claims of disorder, while the subsequent meeting on 15.10.2011 was invalidated due to procedural deficiencies, establishing principles regarding meeting conduct under relevant statutes.

Headnote:(A) Strata Titles Act 1985 - Sections 39, 41, 4(1)(a) - Building and Common Property (Maintenance and Management) Act 2007 - Jurisdiction of original proprietor to convene the AGM - Validity of adjourned meetings - Issue of res judicata raised regarding the establishment of the JMB - The AGM held on 11.9.2011 deemed valid despite chaos allegations; meeting on 15.10.2011 invalid due to improper venue and voting verification. (Paras 178-215)

(B) Res judicata - The plaintiffs are estopped from challenging the establishment of the JMB as similar issues had been previously litigated without raising the certificate of incorporation for the MC. (Paras 180-188)

(C) Meeting Procedures - The original proprietor cannot adjourn a meeting post-adjournment; the meeting can be validly continued by the eligible members present. (Paras 204-211)

Facts of the case:
The plaintiffs, a developer and management corporation, sought damages against the defendant, a JMB, over the validity of two AGMs; an argument over the legitimacy of the JMB and the role of the plaintiffs in adjournments ensued. (Paras 1-2, 215)

Findings of Court:
The court confirmed the validity of the AGM on 11.9.2011 and deemed the meeting on 15.10.2011 invalid due to violations of procedural statutes, leading to an award to the defendants for damages concerning the actions of the plaintiffs. (Paras 216)

Issues: The main issues included the validity of the meetings, the authority of the developer to cancel the AGM, and the applicability of res judicata concerning the JMB's formation.

Ratio Decidendi: The court held that the plaintiffs could not unilaterally cancel the meeting; proper procedures were not followed. The court ruled in favor of the defendants due to prior agreements that bound the plaintiffs.

Result: Plaintiffs' case dismissed, the defendants awarded RM500,000 in damages.

Table of Content
1. establishment of plaintiffs and defendants. (Para 1 , 2 , 3)
2. application for joinder by the 2nd defendant. (Para 4 , 5)
3. testimonies from plaintiffs supporting their case. (Para 6 , 7 , 8)
4. management and payment issues concerning the meeting. (Para 10 , 11 , 12)
5. events leading to the cancellation of the meeting. (Para 13 , 14 , 15 , 16 , 17 , 18)
6. validation of agm held on 15.10.2011. (Para 19 , 20 , 21 , 22 , 23)
7. court's evaluation of the validity issues. (Para 178 , 179 , 180)
8. findings on the meetings held on 11.9.2011. (Para 203 , 204 , 205 , 206 , 207 , 208)
9. conclusions regarding the second meeting. (Para 213 , 214)
10. final judgment and orders of the court. (Para 215 , 216)

[1]The 1st plaintiff, Muafakat Kekal Sdn Bhd, is the original developer and proprietor of a housing project known as Palm Spring Condominium @ Damansara. The 2nd plaintiff, Perbadanan Pengurusan Palm Spring @ Damansara, is a body which was established under the Strata Titles Act 1985 (Act 318) on 8.1.2008. The 1st defendant, Pesuruhjaya Bangunan, Majlis Bandaraya Petaling Jaya, is an officer appointed under section 3 Building and Common Property (Maintenance and Management) Act 2007 (Act 663)2008 under section 4Act 663

[2]The plaintiffs' claim against the defendants is for various declaratory reliefs and damages. In essence, the plaintiffs contend that the general meeting that was held by them on 15.10.2011 was valid whereas that which was held on 11.9.2011 was invalid. The plaintiffs further seek a declaration that the establishment of the 2nd defendant was invalid and had contravened section 4(1)(a) Building and Common Property (Maintenance and Management) Act 2007

[3]In brief, the 2nd defendant contends that the plaintiffs are prohibited from raising the issue as to the validity of the 2nd defendant as the issue is res judicata (issue estoppel). It contends that the meeting held on 11.9.2011 was valid and that held on 15.10.2011 was invalid and should not be recognised. The 2nd defendant has counterclaimed for various declaratory orders as well as general damages, and aggravated damages of RM 500,000.00.

The 2nd defendant's Application for Joinder

[4]After the Court had fixed 20 & 21.2.2012 for the hearing of this Suit, the 2nd defendant had filed a Summons in Chambers to join 11 other persons as defendants. The 2nd defendant also sought a stay of all proceedings until the disposal of the application for joinder. The reasons for the application were that the declaratory reliefs sought by the plaintiffs would bind the proposed defendants and that their joinder were necessary to enable all issues to be placed before and be determined by the Court.

[5]On 9.1.2012, the Court had dismissed the application with no order as to costs. The Court was of the view that the joinder of the office bearers and other committee members of the JMB as fellow defendants was not necessary and their non-joinder would not in any way prejudice the 2nd defendant's case. On the contrary, the joinder of such a large number of co-defendants would only result in further delays occasioned by the necessity of filing additional pleadings at a time when the Court was ready to proceed with the hearing. The Court was of the considered opinion that in the event that declaratory orders are made against the JMB, they were fully capable of being carried out by the relevant office bearers and committee members of the JMB.

The Plaintiffs' Case

[6] The plaintiffs called a total of eight witnesses in support of their case. Dato' Haji Abdul Hanif bin Abdullah (PW 1), the Managing Director of the 1st plaintiff, testified that the 2nd plaintiff is the Management Corporation for Palm Spring Condominium @ Damansara (hereinafter referred to as "Palm Spring Condo") established on 8.1.2008 (page 8 of Bundle A).

[7]The 1st plaintiff is the original proprietor of Palm Spring Condo and, as such, it was its statutory obligation to convene the 1st AGM of the 2nd plaintiff (her

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