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.
