JMBs Cannot Bar Owners From Units Over Unpaid Fees, Court Rules

Joint management bodies (JMBs) have no power to bar owners from entering their own units over unpaid maintenance charges, the Court of Appeal ruled on Monday (Oct 26), Free Malaysia Today reported.

A three-member bench chaired by Justice Alwi Abdul Wahab, with Justices Shahnaz Sulaiman and Ong Chee Kwan, unanimously allowed an appeal by SL Land Sdn Bhd and Foong Wei Ching against the JMB managing Sentral Bazar in Nilai, Negeri Sembilan.

Unpaid maintenance charges no basis for exclusion

Ong, who delivered the broad grounds, said the Strata Management (Maintenance and Management) Regulations 2015 allow a JMB to deactivate defaulters’ access cards, require them to sign a register when seeking help to enter or leave the building, and suspend their use of common facilities and services.

However, the court found nothing in the regulations that allows a JMB to keep an owner out of his or her own unit. “The sanction it authorises is an inconvenience and a record,” Ong was quoted as saying.

According to the reports, Ong said barring owners from their units was a far more drastic step than the measures in the regulations and interfered with their right to use and enjoy their property. He said such a power would require clear legal provisions, and none existed.

High Court decision set aside

The JMB had refused to let SL Land’s directors and authorised agents into their units. The High Court had earlier upheld the JMB’s power to impose conditions on entry by defaulters under the 2015 regulations.

The Court of Appeal set aside that decision and declared unlawful the JMB’s refusals to allow entry on May 4 and June 20, 2023. It also held that requiring shareholders to be present or to give consent before entry was not authorised by law, FMT reported.

Injunction and costs

The court granted an injunction stopping the JMB from blocking access to the units. It preserved the JMB’s regulatory powers and its reasonable, non-discriminatory security arrangements that apply to all proprietors.

The High Court’s RM30,000 costs order was set aside. SL Land was awarded nominal damages as it had not proved any substantial loss, and the JMB was ordered to pay RM50,000 in costs for proceedings in both courts.

SL Land and Foong were represented by Ivanpal Singh Grewal, Harwinder Kaur and S Nisha, while K Muralidharan and Ahmad Amir Mukhlis acted for the JMB.

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