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.
Different rates and the basis for a challenge
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.
