Photo shows (from fifth left) Lai, Low, Ooi and Ang with the K Residence JMB representatives.

KUALA LUMPUR: The Court of Appeal has allowed an appeal by the Joint Management Body (JMB) of K Residence to set aside a High Court order obtained by a developer and seven others. The High Court had invalidated the 1st, 2nd and 3rd Annual General Meetings (AGMs) on the grounds, among others, that the developer was not allowed to vote.

The case began with the developer and associated parties filing a suit in the High Court, seeking declarations to nullify the AGMs, primarily arguing that their voting rights were wrongfully denied. On 7 February 2024, the High Court ruled in their favor, declaring the AGMs null and void on the basis that the arrears were validly disputed by the developer, which entitled them to voting rights. The High Court also directed the JMB to reconvene the AGMs.

Dissatisfied with this decision, the JMB appealed. After reviewing submissions from all parties, the Court of Appeal ruled that the validly disputed test devised by the Judicial Commissioner did not align with the strata regime under the Strata Management Act 2013 (SMA 2013). 

Specifically, the court emphasised that the proviso under Paragraph 21(2), Second Schedule of the SMA 2013, which includes “other money due and payable” to the JMB, must be considered alongside voting rights. The court held that the developer could not take advantage of its own failure to pay arrears and ordered that this issue be determined at trial in the High Court.

The K Residence Joint Management Body was represented by Lai Chee Hoe, Angeline Ang, Ooi Xin Yi and Low Yen Hau of Chee Hoe and Associates (CHA) while Tan Sri Muhammad Shafee and Aimee Liew represented the developer.

Stay ahead of the crowd and enjoy fresh insights on real estate, property developments and lifestyle trends when you subscribe to our newsletter and follow us on social media.