p-02ncvcw-1305-07-2024 — BADAN PENGURUSAN BERSAMA GURNEY PARAGON RESIDENTIAL v 1. ) HUNZA PROPERTIES (GURNEY) SDN BHD 2. ) HUNZA PROPERTIES (PENANG) SDN BHD 3. ) BEACHFRONT SERVICES SDN BHD

Catchwords

legal questions concerning the validity of a bifurcated management structure in a mixed development under the Building and Common Property (Maintenance and Management) Act 2007 (“BCPA 2007”) and the Strata Management Act 2013 (“SMA 2013”). whether the developer and the commercial parcel owners were legally entitled to institute a regime of separate management and maintenance of the commercial parcels and the common property within the commercial component, thereby confining the Joint Management Body (“JMB”) to the management of only the residential parcels and the common property appurtenant thereto. Court to determine the consequences of such arrangements should the resolutions passed at the first annual general meeting be found ultra vires and void, specifically, whether the JMB, is entitled to demand the surrender and handover of the commercial common property, and to recover arrears of maintenance charges and sinking fund contributions retrospectively from the developer’s management period through to the present JMB management period. whether residential parcel owners, who had paid charges imposed pursuant to the impugned resolutions, may seek refunds of the sums paid, and whether the Court may instead order that such payments be credited or adjusted against lawfully determined charges to be fixed at a proper general meeting to be convened by the JMB. statutory framework governing common property, the indivisibility of management responsibilities, and the legal effect of resolutions that purport to depart from the scheme mandated by the BCPA 2007 and SMA 2013.

Practice Areas

legal questions concerning the validity of a bifurcated management structure in a mixed development under the Building and Common Property (Maintenance and Management) Act 2007 (“BCPA 2007”) and the Strata Management Act 2013 (“SMA 2013”). whether the developer and the commercial parcel owners were legally entitled to institute a regime of separate management and maintenance of the commercial parcels and the common property within the commercial component, thereby confining the Joint Management Body (“JMB”) to the management of only the residential parcels and the common property appurtenant thereto. Court to determine the consequences of such arrangements should the resolutions passed at the first annual general meeting be found ultra vires and void, specifically, whether the JMB, is entitled to demand the surrender and handover of the commercial common property, and to recover arrears of maintenance charges and sinking fund contributions retrospectively from the developer’s management period through to the present JMB management period. whether residential parcel owners, who had paid charges imposed pursuant to the impugned resolutions, may seek refunds of the sums paid, and whether the Court may instead order that such payments be credited or adjusted against lawfully determined charges to be fixed at a proper general meeting to be convened by the JMB. statutory framework governing common property, the indivisibility of management responsibilities, and the legal effect of resolutions that purport to depart from the scheme mandated by the BCPA 2007 and SMA 2013.

Judges (3)

Ahmad Kamal bin Md. Shahid Coram Azhahari Kamal bin Ramli Coram Ong Chee Kwan Delivered

Counsel (7)

Chee Hoe & Associates Firm Skrine Firm Ashok Kumar Mahadev Ranai Counsel Respondent Deyvinah Ganesalingam Counsel Appellant Lai Chee Hoe Counsel Appellant Lim Chin Lun Counsel Respondent Low Yen Hau Counsel Appellant

Parties (3)

BADAN PENGURUSAN BERSAMA GURNEY PARAGON RESIDENTIAL Appellant BEACHFRONT SERVICES Sdn Bhd Respondent HUNZA PROPERTIES Sdn Bhd Respondent

Summary

Gurney Paragon JMB challenged the validity of a bifurcated management structure separating residential and commercial management. The Court of Appeal allowed the appeal, declaring the separate management resolutions ultra vires and void, ordering surrender of commercial common property to the JMB.

What was the outcome of BADAN PENGURUSAN BERSAMA GURNEY PARAGON RESIDENTIAL v 1. ) HUNZA PROPERTIES (...?

<p>Gurney Paragon JMB challenged the validity of a bifurcated management structure separating residential and commercial management. The Court of Appe...

Cases Cited (5)

MY (5)

[2002] 3 CLJ 231 [2015] 2 CLJ 10 [2019] 2 CLJ 592 [2020] 12 MLJ 16 [2024] 1 MLJ 948