Successors in title can be held liable for debts arising from management fees under the Strata Titles Act, irrespective of when the debt was incurred.

[1] These two appeals arise from the decision of the High Court dated 29 January 2016 allowing the claim brought by the plaintiff, Pantai Towers Management Corporation ('the management corporation') and the respondent here, against the two defendants, namely Brightvite Sdn Bhd, the 1st defendant ('Brightvite') who is the appellant in appeal number 433 and Benchmark Link Sdn Bhd, the 2nd defendant who is the appellant in appeal number 434.

[2] The management corporation's claim vide originating summons against Brightvite and Benchmark (in each of the appeals) is for service charges, maintenance fees, quit rent, insurance premium payment and water charges ('management fees') in respect of condominium units purchased by the appellants from the previous owner, one Metroplex Berhad (in liquidation) ('Metroplex'). The two appeals, namely 433 and 434 were heard together.

[3] The learned High Court Judge determined the matter in favour of the management corporation ruling that Brightvite and Benchmark were liable for the full management fees due and owing. This sum included arrears of management fees that had accrued due prior to their acquisition of 5 and 30 condominium units respectively from Metroplex. In other words, a portion of the debt claimed by the plaintiff included management fees incurred during the time when Metroplex was the owner of the condominium units. The basis for such claim includes inter alias 45(5) and 45(3) of the Strata Titles Act 1985 ('the Act'). Brightvite and Benchmark appealed against the decision maintaining that they were only liable for management fees levied and unpaid after they had acquired their respective units.

Salient Facts

[4] The management corporation, the plaintiff, was established as the management corporation of Pantai Towers on 15 March 2005 by virtue of s 39 of the Act. It comprises a block of 56 condominium units. Originally, Metroplex owned a total of 30 condominium units. It incurred management fees owing to the management corporation for the period from October 2007 to September 2008 in respect of those 30 units. On 27 August 2008, the management corporation filed a suit against Metroplex to claim the sum of RM159,146.23 being the outstanding management fees then due and owing. The management corporation obtained judgment against Metroplex on 9 October 2009. However, well before that, on 1 August 2008, Metroplex had been wound up and a liquidator appointed. The management corporation therefore filed a proof of debt form on 7 December 2012 for a sum of RM931,786.39. This comprised the management fees outstanding for the entire 30 units for the period from October 2007 until September 2012 inclusive of the judgment debt. These fees remain unpaid to date. The proof of debt form remains unadmitted and unpaid.

[5] Prior to the winding up of Metroplex, Brightvite acquired five of the condominium units, although the sale was finally only concluded on 25 August 2012. This was unknown to the management corporation. The latter only realised this for the first time at the first creditors' meeting held on 3 January 2013 when they were so informed by the liquidator of Metroplex.

[6] On 14 April 2013, the remaining 25 units owned by Metroplex were sold to Benchmark as approved by an order of the High Court dated 15 May 2013. The majority shareholder of Benchmark is Madam Lim Siew Kim who was at all material times a Director of Metroplex.

[7] The claim by the management corporation against Brightvite and Metroplex was for a total sum of RM1,080,95.16 being the apportioned maintenance charges owed to it from October 2008 until December 2014. This is to be contrasted with the management corporation's claim against Metroplex which was for the period from October 2007-September 2008.

[8] The breakdown of the amount owing i