In Suria First Holdings Sdn Bhd & Ors v. Joint Management Body of Ara Hill Condominiums [2025] CLJU 869, the High Court dismissed a judicial review application challenging the Strata Management Tribunal’s Award. The case addressed disputes over share unit allocation andmaintenance charges at Ara Hill Condominiums, reinforcing key principles under the Strata Management Act 2013 (SMA) relevant to developers and joint management bodies (JMBs).
Background of the Case
Suria First Holdings and other proprietors challenged the Tribunal’s Award which upheld the JMB’s share unit allocation and maintenance charges of RM3.75 per share unit. The applicants argued the allocation was defective and the charges excessive, claiming procedural impropriety, including a delayed Award and an unfulfilled promise of an independent surveyor review.
The developer’s licensed land surveyors had assigned the share units before the SMA’s commencement, per section 8, and these were filed with the Commissioner of Buildings (COB). The applicants sought to reverse a JMB decision from an Extraordinary General Meeting (EGM), where their motion to revise the share units was defeated. They also contested the maintenance charges approved at the 6th Annual General Meeting (AGM), alleging an inflated budget.
High Court’s Ruling
- Share Unit Allocation: The developer’s share units, assigned by licensed land surveyors per section 8 of the SMA, were deemed valid until proven defective. The applicants failed to provide an alternative surveyor’s report or calculations per the SMA’s First Schedule, and the JMB had no duty to verify the allocation.
- Maintenance Charges: The JMB’s authority to set maintenance charges under the SMA was upheld. The RM3.75 per share unit rate, approved at the 6th AGM, was valid. The applicants’ claim of an inflated budget did not invalidate the resolution, and the Tribunal lacked jurisdiction to alter JMB decisions. The appropriate remedy is to propose rate changes at a future AGM.
- Procedural Issues: The applicants claimed the Award violated section 117(1) of the SMA, requiring delivery within 60 days. The court found the hearing with the Award issued was within the timeline. Even if delayed, Commissioner of Buildings Hang Tuah Jaya Municipal Council v. Joint Management Body of Isora Apartments [2020] MLJU 1374 holds that the 60-day period is not mandatory if justified.
- Preliminary Objection on Evidence: The applicants’ claim that the Tribunal promised an independent surveyor review was rejected. Without certification from the Tribunal, such claims cannot support a judicial review.
Key Takeaways
- Robust Share Unit Documentation: Developers must ensure licensed land surveyors assign share units per the SMA’s First Schedule, as these are presumed valid until challenged with concrete evidence. Maintaining detailed records can mitigate disputes during JMB handovers.
- JMB Authority on Charges: JMBs have broad discretion to set maintenance charges, subject to AGM approval. Developers and JMBs should ensure transparent budgeting to avoid proprietor challenges, as the Tribunal cannot override such decisions.
- Compliance with SMA Timelines: While the 60-day Award timeline is not strictly mandatory, Tribunals should aim to comply or provide cogent reasons for delays to avoid procedural challenges.
- Evidence in Judicial Reviews: Claims of procedural errors, like unfulfilled Tribunal promises, require certified records. Developers and JMBs should maintain accurate documentation to defend against judicial review applications
- Engage Proprietors Early: Developers should foster clear communication during the preliminary management period to align expectations on share units and charges, reducing the risk of disputes.
Conclusion
The High Court’s decision reinforces the SMA’s framework for equitable strata management, emphasizing the validity of developer-assigned share units and JMB authority over maintenance charges. For developers, this case underscores the importance of precise compliance with the SMA and robust documentation to withstand proprietor challenges, ensuring smooth transitions to JMB governance.
– By George Miranda, Joy Sam Jia Qian, Nurafiqah ‘Izzati –
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.
