ASM DEVELOPMENT SDN BHD v 1. ) TENAGA NASIONAL BERHAD 2. ) PERBADANAN PENGURUSAN BTS MC 1

Case Significance

Holds that a joint management body and, in succession, a management corporation are the actual consumer of common-area electricity under the Electricity Supply Act 1990, and are liable for arrears by operation of sections 27 and 28 of the Strata Management Act 2013, relieving the developer that had opened the accounts.

This High Court decision at Kuala Lumpur concerns which party bears responsibility, as the electricity consumer, for the common-area electricity supply to a subdivided strata development. The plaintiff was the developer of several blocks of apartments in Bandar Tasik Selatan and, after handing over vacant possession to purchasers, had opened electricity supply accounts with the first defendant, Tenaga Nasional Berhad, to procure electricity for the common areas. Once a joint management body had been established to manage certain of the blocks, the plaintiff sought to have the accounts closed or transferred, but the joint management body refused to open new accounts or to sign the necessary forms, and Tenaga Nasional Berhad continued to bill the developer, keeping the accounts alive in its name. The plaintiff sued for declarations that the joint management body and its successor management corporation were the actual users of the accounts and liable for the arrears, and for an order that the accounts be transferred into the management corporation's name. The Court considered the definition of 'consumer' under the Electricity Supply Act 1990 and authorities including 3 Two Square Sdn Bhd v Perbadanan Pengurusan 3 Two Square, and concluded that the joint management body, and after it the management corporation, was the actual user of the electricity for the common property. It held that the developer should not be held liable for arrears accrued long after the joint management body had taken over management, and that the second defendant management corporation was liable by operation of law under sections 27 and 28 of the Strata Management Act 2013. The Court granted the declarations sought, holding the joint management body and management corporation to be the actual users of the five accounts and directing that the arrears and the accounts be dealt with accordingly. The developer was thereby relieved of continuing liability for a supply consumed by those responsible for the common property.