In Rozzana Chung Binti Abdullah & Ors v United Highlands Sdn Bhd (C-02 (NCvC)(W)-879-06/2023), the Court of Appeal considered a dispute involving the Joint Management Body (“JMB”) and Joint Management Committee (“JMC”) of Selesa Hillhomes, a strata development in Bukit Tinggi, Pahang.
The developer, United Highlands Sdn Bhd, argued that the Defendants had continued to act as JMC members after the terms of certain office bearers had expired. The High Court accepted the developer’s claim and granted wide declaratory and injunctive relief, including a finding of tort of deceit.
On appeal, the Court of Appeal allowed the appeal. The Court held that the expiry of the Chairman, Secretary and Treasurer’s two-year term did not automatically render the entire JMC illegal or void.
Background of the Case
United Highlands Sdn Bhd was the developer of Selesa Hillhomes, a strata development in Bukit Tinggi, Pahang. It was also the registered owner of 47 apartment units in the development and therefore a statutory member of the JMB under the Strata Management Act 2013.
The dispute arose after the terms of certain JMC office bearers expired. The 1st and 2nd Defendants had served as Chairman and Secretary from 9 September 2015 to 8 September 2017, while the 3rd Defendant had served as Treasurer from 12 July 2015 to 11 July 2017.
United Highlands took the position that the JMC was operating unlawfully after the expiry of those terms. It relied on correspondence from the Commissioner of Buildings and a Strata Management Tribunal award concerning the tenure of the office bearers.
The High Court found in favour of United Highlands and granted declarations, injunctions, damages and exemplary damages. The Defendants then appealed to the Court of Appeal, arguing that the entire JMC did not automatically become illegal or void.
The Court of Appeal’s Decision
Locus standi: The Court accepted that an individual proprietor may sue where statutory duties under the Strata Management Act 2013 are breached and their rights are directly affected. The developer therefore had standing as a proprietor/member of the JMB.
High Court jurisdiction: The High Court was not barred from hearing the suit because the relevant Tribunal proceedings did not involve the same parties and were not identical in subject matter.
Tribunal award: The earlier Tribunal award did not bind the Defendants because they were not parties to those Tribunal proceedings.
JMC not automatically void: The expiry of the Chairman, Secretary and Treasurer’s two-year terms did not automatically vacate the office of the remaining JMC members. The statute contained no provision for the automatic retirement of all JMC members.
No tort of deceit: The evidence did not show dishonest conduct or misrepresentation. The documents relied on did not direct all JMC members to resign. The allegation of deceit therefore failed.
Key Takeaways
- Not every strata irregularity voids the JMC: The expiry of specific office bearers’ terms does not automatically make the entire JMC illegal.
- Read the statute carefully: The Strata Management Act 2013 limits the tenure of the Chairman, Secretary and Treasurer, but it does not expressly provide that all remaining committee members automatically vacate office.
- Tribunal proceedings bind the parties before it: A Tribunal award may not bind persons who were not parties to those proceedings.
- Deceit requires proper proof: A finding of tort of deceit requires clear pleading and evidence of dishonest misrepresentation. Mere disagreement over the legality of a committee is not enough.
- Strata disputes should be handled with procedural care: Developers, proprietors, JMBs and JMC members should ensure that meetings, elections and challenges to committee status are pursued through the correct statutory route.
- The Court of Appeal ultimately allowed the appeal, set aside the High Court decision and awarded costs to the Defendants.
For further information, please contact us at Miranda & Samuel:
- Dato’ George Miranda (george@mirandasamuel.com)
- Joy Sam Jia Qian (joy@mirandasamuel.com)
- Muhammad Amir Faiz Bin Mohd Idrus (amir@mirandasamuel.com)
🌐 Follow us for timely updates on legal news and insights:
LinkedIn: https://www.linkedin.com/company/miranda-samuel/
Instagram: https://www.instagram.com/mirandaandsamuel….
Facebook: https://www.facebook.com/mirandandsamuel…
– By George Miranda, Joy Sam Jia Qian, Amir Faiz –
This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.
