The court affirmed that legal fees incurred by a Management Corporation in defending actions initiated by unit owners are recoverable under the by-laws and pertinent provisions of the Strata Management Act.

Quay Chew Soon J:

Introduction

[1] The Plaintiffs (collectively "P") are the registered co-parcel proprietors of No 8-27-1 Springtide Residences, No 8 Jalan Abbas, 11200 Tanjung Bungah, Penang.

[2] The Defendant ("D") is the management corporation of Springtide Residences, comprising of two tower blocks of 74 apartment units and three units of 4 storey landed villa (villa units).

[3] P filed this Originating Summons ("OS") to seek for certain declaratory reliefs against D. I dismissed the OS. Here are the grounds of my decision.

The Originating Summons

[4] Vide the OS, P prayed for the following:

(i) a declaration that the following by-law ("Said By-Law") passed at the 1st Annual General Meeting of D held on 26 April 2013 ("1st AGM") is ultra-vires and void under the Strata Management Act 2013 (" SMA 2013") and / or the Strata Management (Maintenance and Management) Regulations 2015 (" 2015 Regulations"), ie:

'Where any parcel proprietor had breached any by-law passed by the Management Corporation at its Annual General Meetings and where the General Management incurs any costs, fees or expenses whatsoever in enforcing the said by-laws, the Management Corporation shall recover as a debt all such costs, fees and expenses from the parcel proprietor or occupier on an indemnity basis and where the Management Corporation incurs costs, fees and expenses and whatsoever in defending any legal suits brought forth by the parcel proprietor or occupier, the Management Corporation shall recover all such costs, fees and expenses from the parcel proprietor or occupier concerned on an indemnity basis';

(ii) a declaration that the demand by D, by invoice dated 1 December 2020 issued to P for a sum of RM11,234.95 arising from an invoice dated 4 February 2020 from D's solicitors, Messrs Ong & Manecksha ("D Solicitors"), for a sum of RM11,234.95 being legal fees incurred by D in the matter under Tribunal Claim No TPSZU/P-0635-10/19 ("SMT 2019 Claim"), is wholly invalid and of no effect as against P;

(iii) a declaration that the demand by D, by invoice dated 30 November 2021 issued to P for a sum of RM3,967.58 arising from an invoice dated 17 March 2021 for a sum of RM1,460.68 and an invoice dated 28 June 2021 for a sum of RM2,506.90 from the D Solicitors, being legal fees incurred by D in the matter under Tribunal Claim No TPSZU/P-0068-02/21 ("SMT 2021 Claim"), is wholly invalid and of no effect as against P;

(iv) a declaration that any decision by D, to deny P, of their rights as co-parcel proprietors, including their right to attend and vote at any General Meeting of D, by reason of their refusal to pay the legal fees incurred by D in respect of the SMT 2019 Claim and the SMT 2021 Claim (collectively "SMT Claims"), is wholly invalid and of no effect as against P;

(v) an order that the sum of RM11,234.95 being legal fees of the D Solicitors in the matter under the SMT 2019 Claim and the sum of RM3,967.58 being legal fees of the D Solicitors in the matter under the SMT 2021 Claim, be removed forthwith from the Statements of Account and/or any billings issued by D to P;

(vi) an injunction restraining D, whether by themselves, their servants or agents, or otherwise howsoever, from enforcing or causing to enforce their respective invoices in the aggregate sum of RM15,202.53, being legal fees of the D Solicitors, incurred by D in the matters under the SMT Claims, and taking any action that may affect P's rights as co-parcel proprietors, including P's right to peaceable occupation and enjoyment of their apartment unit or parcel and the common property; and

(vii) an order that the costs of and occasioned by