Unreported Case
The author represented a Joint Management Body in resisting a strata management tribunal claim filed by a parcel owner which essentially challenged the validity of a resolution passed by the general body in 2017, allowing the collection of a lump sum contribution to the sinking funds in the sum of a few hundred thousand. The lump sum contribution to the sinking funds was later apportioned to all parcel owners and individual invoices were issued. Aggrieved by the resolution, the parcel owner filed the claim seeking to nullify the invoice.
On 22.2.2024, the Strata Management Tribunal ruled in favour of the Joint Management Body with the following reasonings: –
- Substantial sums were collected and used to upgrade the common facilities and the parcel owner has benefited from it;
- The Strata Management Tribunal cited in favour of the author’s submission on the case of Yong Kein Sin & Anor v. Perbadanan Pengurusan Springtide Residences [2023] 1 LNS 558;
- The Strata Management Tribunal found that it would create chaos and open the floodgate if such a claim were to be allowed at the expense of other parcel owners collectively; and
- The Strata Management Tribunal also took into account Section 117(4)(b) of the Strata Management Act 2013, i.e. to have regard to the interest of all parcel owners or proprietors in the use and enjoyment of their parcels or the common property or limited common property.
WHAT’S NEXT?
Developer, Joint Management Body, and Management Corporation (including the appointed property management company) must be cautious when determining the rates of contribution to sinking funds. It is only in an exceptional situation that the Joint Management Body is allowed to collect contribution to sinking fund in lump sum.