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Can a Parcel Owner seek Restitution and Injunction against JMB and PMC for want of license?

Strata Titles and Management Series

CASE UPDATE: PAU BOON LEONG v JOINT MANAGEMENT BODY OF DATARAN PRESTIJ & ANOR [unreported]

FACTS:

A parcel owner brought an action via originating summons [“OS”] against the joint management body [“JMB”] and property management company [“PMC”], to claim for, inter alia: –

  • A declaration that the PMC is not a licensed property manager and/or allowed under the Strata Management Act 2013 and the PMC is not allowed to be appointed and/or be assigned maintenance and/or management duties of the building;
  • A declaration that any agreement, written or otherwise, entered into between the PMC and the JMB, is null and void;
  • Restitution under section 66 of the Contracts Act 1950;
  • Injunction against the PMC and/or its workers or agents to be removed from entering into, and/or acting as property manager for all affairs concerning the maintenance and management of the property in Dataran Prestij; and
  • An order that JMB and/or its committee members appoint property manager based on the provisions of law.

High Court Decision:

The court dismissed the OS with costs and found in favour of the submissions of PMC and JMB, among others: –

  • The parcel owner has no locus standi to bring the action;
  • The parcel owner is not privy to the agreement entered into between PMC and JMB;
  • At any rate, PMC has paid the requisite bond pursuant to the strata regime; and
  • There are no losses suffered by the parcel owner.

TAKEAWAY:

A proprietor should not be allowed to interfere with the contractual relationship between a JMB and a third-party service provider. At any rate, in a case where it involves dealings with an unlicensed property management company, JMB must ensure the lodgment of the requisite bond as stipulated under the strata regime.

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Author
Senior Legal Associate at Chee Hoe & Associates.
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