JUDGMENT

Narkunavanthy Sundareson J:

(Enclosure 12)

Introduction

[1] On 23 October 2024, the Applicants were granted leave to file an application for judicial review against the Respondents.

[2] Enclosure 12 is the Applicants' substantive application for:

(i) a declaration that the 2nd Respondent's award in Claim No: TPS/W-8178-12/2023 dated 18 March 2024 (Impugned Award) is an error of law, irrational and unreasonable;

(ii) an order of certiorari to quash the Impugned Award;

(iii) a mandatory injunction to compel the 1st Respondent to convene the Annual General Meeting (AGM) of the Joint Management Body (JMB) for Arte Mont Kiara (Condo) within 1 month from the date of this Court 's decision; and

(iv) costs.

[3] After considering the cause papers and submissions by the parties, this Court allowed the Applicants' application. The following are the reasons for the decision.

Background Facts

[4] The facts leading to the Impugned Award and this application are as follows. The Applicants are the registered proprietors of a unit in the Condo and were given vacant possession on 30 October 2020.

[5] The First Respondent failed to convene the AGM of the JMB as required under s 17(1) Strata Management Act 2013 (Act 757) (all references to the various sections hereinafter will be that of Act 757 unless the contrary is indicated). They instituted a claim at the 2nd Respondent to compel the 1st Respondent to convene the first AGM of the JMB.

[6] The First Respondent maintained that it was unnecessary to hold the first AGM of the JMB as the Management Corporation (MC) had already been established on 11 November 2022. They had been given a certificate to that effect by the Federal Territory Land and Mines Office.

[7] On 18 March 2024, their claim was dismissed by the 2nd Respondent who held:

"Secara dasarnya Tribunal bersetuju dengan PP, selepas hak milik strata dikeluarkan oleh pejabat tanah dan pembukaan daftar strata, Perbadanan Pengurusan (MC) telah terbentuk pada tarikh yang sama mengikut s 17(3) Akta Pengurusan Strata 2013 (Akta 757) dan tempoh permulaan bermula dari tarikh penubuhan MC tersebut. Tempoh permulaan tamat apabila terdapat pemilik petak yang jumlah unit syernya adalah sekurang-kurangnya 25% daripada unit syer agregat. Tempoh awal biasanya apabila pemaju menjalankan penyempurnaan pemindahan hak milik strata dengan setiap pembeli petak. Tempoh permulaan tamat apabila pemaju telah memindahkan hak milik strata yang mencukupi kepada pembeli petak yang membentuk sekurang-kurangnya 25% daripada jumlah unit saham dalam pembangunan skim strata. Dalam tempoh 1 bulan selepas tamat tempoh awal, pemaju mempunyai kewajipan untuk mengadakan AGM pertama MC."

Submissions

[8] The Applicants referred to the s 17(1) which mandated the 1st Respondent to hold the first AGM of the JMB within 12 months of delivery of vacant possession. Section 18 made a failure to do so, an offence punishable with a substantial fine, a term of imprisonment or both.

[9] The Applicants referred to s 17(5) and argued that 2nd Respondent was wrong to hold that the provision exempted the 1st Respondent from holding the first AGM of the JMB.

[10] The Impugned Award which ignored the statutory framework of Act 757 was an error of law (Syarikat Kenderaan Melayu Kelantan Bhd v. Transport Workers Union; [1995] 2 MLJ 317; [1995] 2 CLJ 748; [1995] 2 AMR 1601), irrational and unreasonable.

[11] The First Respondent on the other hand placed complete reliance on s 17(5) which they argued was crystal clear. With the establishment of the MC, there was no longer a requirement or duty for them to convene the first AGM of the JMB.

[12] They submitted this provision rendered the Applicants' argument to the contrary untenable in law.

[13] The First Respondent also submitted that the JMB was an interim body prior to the establishment of the MC. Section 27(1) made it clear that the JMB was not intended to subsist concurrently with the MC (Palm Spring Joint Management Body & Anor v. Muafakat Kekal Sdn Bhd &