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Can Management Corporation Impose Different Rates of Charges within a Residential Component?

Strata Titles and Management Series

CASE UPDATE: YONG KEIN SIN & ANOR v. PERBADANAN PENGURUSAN SPRINGTIDE RESIDENCES [2023] 1 LNS 558

FACTS

The Plaintiffs, as the registered proprietors sought declaratory reliefs and orders against the Perbadanan Pengurusan Springtide Residences (“MC”) via originating summons, for among others: –

  • A declaration that the decision by MC to impose different rates of charges between the apartments and villas at Springtide Residences is ultra vires SMA 2013 and void in law;
  • An order for MC to impose a uniform rate against the three (3) villas at RM3.567; and
  • An order for MC to recover the shortfall from August 2009 to the date of the Order.

High Court Decision:

The High Court dismissed the OS with costs and held that among others: –

  • Section 60(3)(b) of the Strata Management Act 2013 empowers MC to impose different rates of charges for different parcels if they are used for ‘significantly different purposes’;
  • The meaning of ‘significantly different purposes’ has to be given its plain meaning and such determination should be left to the members of the MC to decide through a general meeting;
  • Nothing in the SMA 2013 suggests that it is meant to be restricted only to commercial versus residential use; and
  • It would be inequitable for the Villa owners to bear the extra maintenance charges which the Villa owners only have limited or no usage.

TAKEAWAY:

MC is allowed to impose different rates of charges pursuant to Section 60(3)(b) of the Strata Management Act 2013, not only between commercial and residential components but also between different parcels within a residential component itself.

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Author
Senior Legal Associate at Chee Hoe & Associates.
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