Alice Loke Yee Ching J:

GROUNDS OF JUDGMENT Introduction

[1]The Plaintiff is the owner and operator of several car park parcels in a commercial development known as Pusat Dagangan Phileo Damansara 2 (“PD2”). It brings this suit against the Defendant, seeking to invalidate the maintenance and sinking fund charges (“Charges”) imposed on the car park parcels by way of a resolution passed at its 1st Annual General Meeting. The Plaintiff claims that such imposition is an invalid exercise of its powers pursuant to the provisions of the Strata Management Act 2013

Key background facts

[2]The material facts upon which this suit is premised, are undisputed.

[3]PD2 is a stratified commercial development comprising of different parcels as follows:

(i)retail shop lots at the ground floor;

(ii)office units;

(iii)Menara Star building; and

(iv)car parks.

[4]The Plaintiff is the owner of 1329 car parks located at Levels B1, B2 and B3, part of the car park space at Level B4, and also part of the surface car parks.

[5]Strata titles for the PD2 development were issued sometime on 21.1.2014. Share units for the different parcels were stated in the strata titles. The parcels which comprised of the Plaintiff’s car parks were allocated 7632 share units. The total area occupied by the car parks is 423,958 square feet. In comparison, the Menara Star building which comprised of office units with car parks attached to it and occupying a lesser area of 273,849 square feet, was allocated 61,607 share units.

[6]The Defendant is the Management Corporation of PD2, the body corporate managing the building and common property of PD2 since 27.10.2017. Prior to that, for the period between 17.12.2012 and 26.10.2017, the Joint Management Body (“JMB’) was the managing body. Pursuant to section 27(1)Strata management Act 2013AGM”) of the Defendant held on 27.10.2017.

[7]The dispute between the parties arose when at the 1st AGM of the Defendant, Ordinary Resolution No. 4 was tabled and approved whereby different rates of charges were to be applied for different parcel types with effect from 1.11.2017. The rates determined were as follows:

(i)Shop lots: RM 0.29 per share unit;

(ii)Office unit: RM 0.56 per share unit;

(iii)Menara STAR: RM 0.44 per share unit; and

(iv)Plaintiff’s Car Park parcels: RM 4.38 per share unit

[8]The reasons for the disparity in the rates were contained in the Notice of 1st AGM setting out the proposed resolution. As the reasons are material, it is set out below:-

(4) Menara Star, an office tower block with 19,967 square metres (two main parcels comprising of a main office block with 57 accessory parcels and a small basement parcel) contributed a fixed sum of RM25,140 (including sinking fund contributions). Menara Star is self-managed and all costs related to the maintenance of the building are borne by them.

(5) SCP, car park parcel owner, contributed a fixed sum of RM2,232 (three main car parking parcels with 36,964 square metres and 49 accessory parcels).

(6) In order to address the unfair and inequality in the contributions of the Charges by proprietors, it is hereby proposed to introduce new Charges based on Section 60Strata Management Act 2013 (Act 757)

The Plaintiff’s case

[9]The Plaintiff contends as follows:

(i)Ordinary Resolution no. 4 adopted at the 1st AGM runs foul of the Strata Management Act 2013 [Act 757] (“SMA”). The Defendant had acted unlawfully and obliquely in compelling the Plaintiff to pay substantially higher Charges based on different rates compared to other parcel owners;

(ii)Only a single rate is to be charged under s. 60SMA. The only exception to the single rate rule allowing for the imposition of different rate of charges is where it can be shown that the parcels are used for significantly different purposes under s.60(3)(b)SMA. However, the onus lies on the Defendant to show the exception applies;

(iii)Ordinary Resolution no. 4 and the rates of the Charges imposed is a collateral attempt to re-allocate the Plaintiff’s share units. However,