Ramachadran A/L Raman v Zaihab Sdn Bhd (BA-24NCvC-2851-12/2025)

(a) that the Defendant shall not be allowed to deposit the maintenance charges (“Maintenance Charges”) and the contribution to the sinking fund (“Sinking Fund Contribution”) collected from the residents (“Residents”) of Cameron Green Bougainvilla Apartment (“Apartment”) directly into the Defendant’s bank account;

(b) that the Defendant is required to establish the maintenance account (“Maintenance Account”) and the sinking fund account (“Sinking Fund Account”) which will be operated and maintained by the management corporation of Cameron Green Bougainvilla Apartment (“Management Corporation”);

(c) that the Defendant is required to provide a summary and account of all the sums that it has previously receive from **Note : Serial number will be used to verify the originality of this document via eFILING portal 5 the Residents in respect of the Maintenance Charges and the Sinking Fund Contribution;

(d) that the Defendant is required to provide a summary and account of all the sums that it has spent in respect of the Maintenance Charges and the Sinking Fund Contribution;

(e) that the Defendant is required to deposit the Maintenance Charges and the Sinking Fund Contribution directly into the Maintenance Account and the Sinking Fund Account which will be operated and maintained by the Management Corporation;

(f) that the Defendant is required to convene a general meeting for the purpose of establishing the joint management body of Cameron Green Bougainvilla Apartment (“Joint Management Body”) or the Management Corporation;

(g) that the Defendant is required to inform the Commissioner of Building as to the outcome of the said general meeting;

(h) that upon the Joint Management Body or the Management Corporation being established, the Defendant is required to hand over all records relating to the management of the Apartment together with all accounting records in respect of the Maintenance Account and the Sinking Fund Account; **Note : Serial number will be used to verify the originality of this document via eFILING portal 6

(i) a declaration that the annual general meeting conducted on 19.12.2025 (“2025 AGM”) is invalid and that all costs and expenses incurred for the 2025 AGM and all other previous general meetings thereto is to be borne solely by the Defendant;

(j) that in convening the general meeting, the Defendant shall not impose the condition that the Residents are not entitled to vote unless all outstanding arrears in respect of the Maintenance Charges and Sinking Fund Contribution has been paid;

(k) that the cost of this application is to be borne by the Defendant solely without utilising the Maintenance Charges and the Sinking Fund Contribution;

(l) that the Defendant shall not be allowed to convene a general meeting which prejudices the rights of the Residents by imposing the condition that the Residents are not entitled to vote unless all outstanding arrears in respect of the Maintenance Charges and the Sinking Fund Contribution has been paid; and

(m) that the Defendant shall not be allowed to either commence or to continue with legal proceedings to claim for the outstanding arrears of the Maintenance Charges and the Sinking Fund Contribution from the Residents pending the resolution of this dispute. **Note : Serial number will be used to verify the originality of this document via eFILING portal 7 [2] After perusal of the cause papers and upon hearing submissions by the counsels, I have dismissed Enclosure 1 based on the reasons which I shall explain hereafter. Background facts [3] The Defendant is the developer of the Apartment. The Plaintiffs are some of the residents of the Apartment. The Plaintiffs are complaining that the Defendant has failed to convene a general meeting to establish the Joint Management Body or the Management Corporation. [4] As there is no Joint Management Body or Management Corporation established, the Plaintiffs are complaining that the Defendant has been depositing the Maintenance Charges and the Sinking Fund Contribution directly into the Defendant’s bank account. The Defendant has also failed to provide a summary and account of all the funds that has been received and spent. [5] Although the Defendant had convened the 2025 AGM on 19.12.2025, the Plaintiffs said that the 2025 AGM was besieged by procedural irregularities. The Plaintiffs also said that they are not allowed to vote in the 2025 AGM due to the restriction imposed on them to bar residents with outstanding arrears to participate in the said meeting. **Note : Serial number will be used to verify the originality of this document via eFILING portal 8 Summary of the Plaintiffs’ case (in supporting Enclosure 1) [6] The Plaintiffs are demanding for the Defendant to establish the Maintenance Account and the Sinking Fund Account. The Plaintiffs are also demanding for the Defendant to convene a general meeting to establish the Joint Management Body or the Management Corporation. [7] In respect to the 2025 AGM, the Plaintiffs state that the notice dated 19.12.2025 (“Notice”) was issued by “Zaihab– Maintenance & Utilities Works Committees”. The Plaintiffs say that the Notice is wrong because the said committee does not exist and it is not a legal entity. The Plaintiffs also point out that there were no audited accounts attached to the Notice. The Notice is also irregular as the fourteen (14) days requirement period was not adhered to. [8] The Plaintiffs also said that they are not allowed to vote in the 2025 AGM due to the restriction imposed on them to bar residents with outstanding arrears to participate in the said meeting. Summary of the Defendant’s case (in opposing Enclosure 1) [9] The Defendant explains that the Apartment only consist of 40 units. Out of these 40 units, less than 10 of the residents pay the Maintenance Charges and the Sinking Fund Contribution. The rest of the residents have defaulted in the payments. The **Note : Serial number will be used to verify the originality of this document via eFILING portal 9 Plaintiffs themselves have not paid their respective arrears for the last 15 to 20 years. The Defendant has already taken legal action against the Plaintiffs (with the exception of Plaintiff No 14) to claim for the outstanding arrears. [10] The Defendant argues that they have the right to collect the Maintenance Charges and the Sinking Fund Contribution in accordance with the provisions of the sale and purchase agreement. This is due to the fact that the Joint Management Body or Management Corporation has not yet been established. Section 9 of the Strata Management Act 2013 also empowers the Defendant to collect the Maintenance Charges and the Sinking Fund Contribution. [11] The Defendant denies that they have failed to convene a general meeting to establish the Management Corporation. In all, the Defendant has convened six (6) general meetings, all of which were unsuccessful: - General meeting Date Attendance 1st AGM

(a) 1st Issue: - Is the Defendant allowed to deposit the Maintenance Charges and the Sinking Fund Contribution directly into the Defendant’s bank account?

(b) 2nd Issue: - Is the Defendant required to establish the Maintenance Account and the Sinking Fund Account which will be operated and maintained by the Management Corporation?

(c) 3rd Issue: - Is the Defendant required to provide a summary and account of all the sums that it has previously receive from the Residents in respect of the Maintenance Charges and the Sinking Fund Contribution? **Note : Serial number will be used to verify the originality of this document via eFILING portal 12

(d) 4th Issue: - Is the Defendant required to provide a summary and account of all the sums that it has spent in respect of the Maintenance Charges and the Sinking Fund Contribution?

(e) 5th Issue: - Is the Defendant required to deposit the Maintenance Charges and the Sinking Fund Contribution directly into the Maintenance Account and the Sinking Fund Account which will be operated and maintained by the Management Corporation?

(f) 6th Issue: - Is the Defendant required to convene a general meeting for the purpose of establishing the Joint Management Body or the Management Corporation?

(g) 7th Issue: - Is the Defendant required to inform the Commissioner of Building as to the outcome of the said general meeting?

(h) 8th Issue: - That upon the Joint Management Body or the Management Corporation being established, is the Defendant required to hand over all records relating to the management of the Apartment together with all accounting records in respect of the Maintenance Account and the Sinking Fund Account?

(i) 9th Issue: - Whether the 2025 AGM is invalid? **Note : Serial number will be used to verify the originality of this document via eFILING portal 13

(j) 10th Issue: - That in convening the general meeting, is the Defendant allowed to impose the condition that the Residents are not entitled to vote unless all outstanding arrears in respect of the Maintenance Charges and Sinking Fund Contribution has been paid?

(k) 11th Issue: - Whether the cost of this application is to be borne by the Defendant solely without utilising the Maintenance Charges and the Sinking Fund Contribution?

(l) 12th Issue: - Is the Defendant allowed to convene a general meeting by imposing the condition that the Residents are not entitled to vote unless all outstanding arrears in respect of the Maintenance Charges and the Sinking Fund Contribution has been paid?

(m) 13th Issue: - Is the Defendant allowed to commence or continue with legal proceedings to claim for the outstanding arrears of the Maintenance Charges and the Sinking Fund Contribution from the Residents pending the resolution of this dispute? Law relating to the Strata Management Act 2013 and the Strata Titles Act 1985 **Note : Serial number will be used to verify the originality of this document via eFILING portal 14 [16] The Strata Management Act 2013 regulates the day-to-day management and maintenance of strata properties. The Strata Titles Act 1985 governs the subdivision of buildings and issuance of strata titles. [17] A developer’s management period starts from the date of delivery of vacant possession. Once vacant possession has been delivered, the developer shall convene the joint management body’s first annual general meeting not later than 12 months from the date of delivery of vacant possession. [18] The joint management body will be established upon the convening of the first annual general meeting. Within one month after the establishment of the joint management body, the developer shall transfer all balances of moneys in the maintenance account and the sinking fund account and to hand over to the joint management body all records relating to the building. [19] Upon the strata title being issued, the registrar of titles / land administrator shall open a book of the strata register, upon which the management corporation shall come into existence. It shall be the duty of the developer to convene the first annual general meeting of the management corporation. [20] Within one month after the establishment of the management corporation, the joint management body shall transfer all balances of moneys in the maintenance account and the sinking **Note : Serial number will be used to verify the originality of this document via eFILING portal 15 fund account and to hand over the management corporation all records relating to the building. Are the Plaintiffs seeking to establish the Joint Management Body or the Management Corporation? [21] In reliefs (g) and (i) of the Originating Summons (Enclosure 1), the Plaintiffs are seeking for the establishment of either the Joint Management Body or the Management Corporation. However, the Plaintiffs’ affidavit (Enclosure 9) has exhibited (Exhibit “SLT- 2”) the land search conducted on the master title for the Apartment. The said land search shows that the book of strata register has been opened on 5.11.2004 under the name of “Perbadanan Pengurusan Cameron Green”. [22] The establishment of a management corporation is provided for in the Strata Titles Act 1985. Section 17(3) of the Strata Titles Act 1985 provides that: - “Effect of opening of book of strata register 17(3) Upon the opening of a book of the strata register in respect of a subdivided building or land there shall, by the operation of this section, come into existence a management corporation consisting of all the parcel proprietors including in the case of phased development, the proprietor of the provisional block or blocks and the Director shall issue a certificate certifying the establishment of the management **Note : Serial number will be used to verify the originality of this document via eFILING portal 16 corporation as a body corporate constituted under this Act on the day the book of strata register is opened.” [23] Therefore, the Management Corporation is already in existence. Accordingly, there should no longer be any requirement for the Plaintiffs to pray for the establishment of the Joint Management Body. Section 17(5) of the Strata Management Act 2013 provides: - “Establishment of a joint management body 17(5) If the management corporation comes into existence before the first annual general meeting of the joint management body specified in subsection (1) is convened-

(a) the first annual general meeting shall not be required to be convened and no joint management body shall be established for that development area; and

(b) the provisions in Part V of this Act shall apply to the development area.” 1st Issue: - Is the Defendant allowed to deposit the Maintenance Charges and the Sinking Fund Contribution directly into the Defendant’s bank account? 2nd Issue: - Is the Defendant required to establish the Maintenance Account and the Sinking Fund Account which will be operated and maintained by the Management Corporation? **Note : Serial number will be used to verify the originality of this document via eFILING portal 17 5th Issue: - Is the Defendant required to deposit the Maintenance Charges and the Sinking Fund Contribution directly into the Maintenance Account and the Sinking Fund Account which will be operated and maintained by the Management Corporation? 8th Issue: - That upon the Joint Management Body or the Management Corporation being established, is the Defendant required to hand over all records relating to the management of the Apartment together with all accounting records in respect of the Maintenance Account and the Sinking Fund Account? [24] The 1st Issue, 2nd Issue, 5th Issue and 8th Issue are closely connected and intertwined with each other. I will address to all these four issues as a whole. [25] The Management Corporation is already in existence. Section 56(1) of the Strata Management Act 2013 provides that the Management Corporation shall elect a committee which shall perform the Management Corporation’s duties and business on its behalf (“Management Committee”). The Defendant has already convened six (6) general meetings. However, no quorum was present for those previous general meetings. As such, no persons were elected into the Management Committee. [26] In order for this particular relief to be allowed, there has to be a proper handing over of control by the Defendant to the **Note : Serial number will be used to verify the originality of this document via eFILING portal 18 Management Corporation. Section 55(1) of the Strata Management Act 2013 provides that a developer shall, not later than the date of the expiry of the preliminary management period, transfer the control of all balances of moneys in the maintenance account and in the sinking fund account to the management committee. [27] However, in this case, it would not be possible for the Defendant to transfer the control of the moneys and the accounts as there is no functioning Management Committee. The Management Corporation cannot function without any persons elected into its committee. [28] I also agree with the Defendant’s contention that they have the right to collect the Maintenance Charges and the Sinking Fund Contribution pursuant to section 9 of the Strata Management Act 2013. This is also in line with section 48(1) of the Strata Management Act 2013, which provides that a developer shall, during the preliminary management period (the period commencing from the date of delivery of vacant possession until one month after the first annual general meetings of the management corporation) be responsible to maintain and manage properly the subdivided building, land and the common property. [29] Further, section 48(2) of the Strata Management Act 2013 provides that a developer shall exercise the powers and perform the duties of the management committee of the management **Note : Serial number will be used to verify the originality of this document via eFILING portal 19 corporation from the time the management corporation comes into existence until the expiry of the preliminary management period. 3rd Issue: - Is the Defendant required to provide a summary and account of all the sums that it has previously receive from the Residents in respect of the Maintenance Charges and the Sinking Fund Contribution? 4th Issue: - Is the Defendant required to provide a summary and account of all the sums that it has spent in respect of the Maintenance Charges and the Sinking Fund Contribution? [30] The 3rd Issue and the 4th Issue are closely connected and intertwined with each other. I will address to these two issues as a whole. [31] Section 14(1) of the Strata Management Act 2013 provides that a developer shall, in respect of the maintenance account and the sinking fund account, cause to be prepared such accounts and records of accounts as will sufficiently explain the transactions of the accounts and enable true and fair balance sheet, income and expenditure statement and profit and loss statement to be prepared for the period starting from the commencement of the developer's management period. A developer must also appoint an approved company auditor to carry out the audit of the accounts. **Note : Serial number will be used to verify the originality of this document via eFILING portal 20 [32] Similarly, section 54(1) of the Strata Management Act 2013 provides for the same duties for a developer during the preliminary management period. [33] The Defendant’s affidavit (Enclosure 8) has already exhibited in (Exhibit “WCF-5”) the accounts which has been duly audited for the years of 2000 until 2023. The Defendant has also pointed out that the accounts are available at the Defendant’s office. [34] Lastly, the Defendant has also pointed out that the actual dispute stems from the Plaintiffs alleging that the Defendant had failed in its duties to properly managed the Apartment and the funds. However, at this juncture, I find that the Plaintiffs have failed to show or substantiate any allegations of mismanagement and misappropriation. [35] Additionally, for this this particular relief to be allowed, the Plaintiffs would also have to precise in what exact documents, information or particulars which they are seeking. The Plaintiffs cannot seek for such a general and wide relief without proper cause or justification. 6th Issue: - Is the Defendant required to convene a general meeting for the purpose of establishing the Joint Management Body or the Management Corporation? 7th Issue: - Is the Defendant required to inform the Commissioner of Building as to the outcome of the said general meeting? **Note : Serial number will be used to verify the originality of this document via eFILING portal 21 10th Issue: - That in convening the general meeting, is the Defendant allowed to impose the condition that the Residents are not entitled to vote unless all outstanding arrears in respect of the Maintenance Charges and Sinking Fund Contribution has been paid? 12th Issue: - Is the Defendant allowed to convene a general meeting by imposing the condition that the Residents are not entitled to vote unless all outstanding arrears in respect of the Maintenance Charges and the Sinking Fund Contribution has been paid? [36] The 6th Issue, 7th Issue, 10th Issue and 12th Issue are closely connected and intertwined with each other. I will address to all these four issues as a whole. [37] The core issue of this dispute is that the Plaintiffs want to have the right to participate and vote in the general meeting although the they have not paid the outstanding arrears for the Maintenance Charges and the Sinking Fund Contribution for the last 15 to 20 years. [38] The Second Schedule of the Strata Management Act 2013 sets out the procedural rules for the managing of meetings of a joint management body or management corporation. Paragraph 21(2) of the Second Schedule of the Strata Management Act 2013 provides that: - **Note : Serial number will be used to verify the originality of this document via eFILING portal 22 “Voting rights of proprietor 21(2) A proprietor shall not be entitled to vote if, on the seventh day before the date of the meeting, all or any part of the Charges, or contribution to the sinking fund, or any other money due and payable to the management corporation in respect of his parcel are in arrears.” [39] The Plaintiffs argued that paragraph 21(2) of the Second Schedule only applies to arrears due to the Management Corporation. In this case, paragraph 21(2) would not apply because the Plaintiffs owe the outstanding arrears to the Defendant, who is actually the developer and not the management corporation. Therefore, the Plaintiffs shall be entitled to participate and vote because there is actually no outstanding amount due and owing to the Management Corporation. [40] I am not persuaded by the Plaintiffs’ argument. There are no legal authorities put forth by the Plaintiffs to support their contention. As has been explained earlier, section 55(1) of the Strata Management Act 2013 provides for the Defendant to eventually transfer the control of all balances of moneys in the Maintenance Account and in the Sinking Fund Account to the Management Corporation. As such, all outstanding arrears owed to the Defendant at this juncture would also be deemed as owing to the Management Corporation upon its eventual transfer of control. **Note : Serial number will be used to verify the originality of this document via eFILING portal 23 [41] It is not correct to give such a narrow and technical interpretation to paragraph 21(2) of the Second Schedule. If such is the case, this would mean that the Plaintiffs would be allowed to participate and vote even though they have not paid the Maintenance Charges and the Sinking Fund Contribution. I do not think that this should be the proper approach. [42] I have also taken into account the fact that the Second Schedule of the Strata Management Act 2013 is not meant exclusively for the management corporation. It can also include joint management bodies. Section 22(2) of the Strata Management Act 2013 provides: - “Joint management committee 22(2) The provisions of the Second Schedule shall apply to the joint management body and the joint management committee with modifications, including the following:

(a) a reference to the "management corporation" shall be construed as a reference to the joint management body;” [43] Therefore, considering the provisions in section 22(2) of the Strata Management Act 2013, I take the view that Paragraph 21(2) of the Second Schedule was never to be meant to be read so restrictively as how the Plaintiffs would argue it to be. A proprietor shall not be entitled to vote if there are arrears due **Note : Serial number will be used to verify the originality of this document via eFILING portal 24 and payable to either the management corporation, joint management body or even the developer. Any arears due to the developer would also be deemed as arrears due and only to the joint management body or management corporation. 9th Issue: - Whether the 2025 AGM is invalid? [44] I do not see this issue as being material. In any event, the parties have not directed the bulk of their submission on this issue. I also do not see any relevance in deciding whether the 2025 AGM is invalid, considering that there is no real outcome from the 2025 AGM. 13th Issue: - Is the Defendant allowed to commence or continue with legal proceedings to claim for the outstanding arrears of the Maintenance Charges and the Sinking Fund Contribution from the Residents pending the resolution of this dispute? [45] Considering the decision that I have arrived at to all the previous reliefs, I will not allow this particular relief as it amounts to an abuse of process of court. There is no reason why there should be a bar for the Defendant to commence or continue with legal proceedings. The Defendant is free to commence legal action. 11th Issue: - Whether the cost of this application is to be borne by the Defendant solely without utilising the Maintenance Charges and the Sinking Fund Contribution? **Note : Serial number will be used to verify the originality of this document via eFILING portal 25 [46] Considering the decision that I have arrived at to all the previous reliefs, I will also not allow this particular relief. Conclusion [47] Accordingly, for the reasons above, Enclosure 1 is dismissed with costs at RM4,000.00. Dated the 15th June 2026. (SEOW HOCK PENG) JUDICIAL COMMISSIONER HIGH COURT OF MALAYA SHAH ALAM, SELANGOR Counsel: For the Plaintiffs : Chiang Woei Chien (Messrs Chiang Chambers) For the Defendant : Mahsuri binti Hussein (Messrs Law Office of Paul) **Note : Serial number will be used to verify the originality of this document via eFILING portal