CASE UPDATE: PERBADANAN PENGURUSAN ARA AMPANG v. PENTADBIR TANAH DAERAH HULU LANGAT [2021] 6 CLJ 441
FACTS:
This is a land reference case involving compulsory land acquisition carried out by Land Administrator on Pusat Komersil Ara Ampang. Pusat Komersil Ara Ampang is a small commercial 3 storey development, comprising 10 units of retail shops at ground level with shop and office accommodation on the upper 2 floors. There is covered car parking at basement level and some on-street parking. There are rental agreements entered into for the basement car park.
The Land Administrator, having compensated the parcel owners of strata units for the market values of their respective strata units, wishes to acquire the common property in the same strata development in the same acquisition process without paying any value on the common property to the management corporation (“MC“), arguing on among others, double counting; income derived from the common property could not be regarded as earnings to be enjoyed.
DECISION:
The High Court held that the Land Administrator has to pay a reasonable compensation to the MC for having acquired the common property in the same acquisition process, specifically on those common properties with existing income-earning capacity and potential income-earning capacity, but not for those without. The High Court also held that there is no legal prohibition against the MC from deciding to impose parking charges at the common property.
WHAT’S NEXT:
There are a few takeaways from this case development: –
- This decision fortifies the rights of JMB or MC to impose rental charges at the common property area;
- Income obtained from common property will have long term repercussion when it comes to compulsory land acquisition;
- JMB or MC needs to identify and devise plan on better managing common property and to promote and ensure lean usage and enjoyment;