JOHN DENIS DE
SILVA V. CRESCENT COURT MANAGEMENT CORPORATION
HIGH COURT MALAYA, KUALA LUMPUR
[ORIGINATING SUMMONS NO: S6-24-2340-2004]
ABDUL MALIK ISHAK J
3 MARCH 2006
CIVIL
PROCEDURE: Service - Ex parte injunction order - Delay in service -
Delay due to court - Whether justice of case overrides technical
non-compliance - Rules of the High Court 1980, O. 1A, O. 2 r. 1(1), (3), O.
29 r. 1(2BA)
CIVIL PROCEDURE: Injunction - Interim injunction to restrain
management corporation from preventing condo unit owner entry - Whether
owner had unrestricted right of entry - Whether owner’s failure to pay
maintenance charges a ground for refusing entry - Whether justice of case in
favour of owner
LAND LAW: Strata title - Management corporation - Denying parcel
owners right of entry on grounds that maintenance charges not paid - Whether
denial unjustified and no legal grounds - Whether charges recoverable only
by way of action for debt in court - Strata Titles Act 1985, ss. 52, 53, 53A
and 75
The plaintiff was the owner and resident of a condominium unit (‘his unit’)
whilst the defendant was the management corporation of the said condominium.
The plaintiff always parked his car at a parking lot (‘parking bay 106’)
allocated for him. It followed that the defendant prevented him from
entering the condominium compound when he tried to drive in one day and
claimed that he had no right to park his car at parking bay 106. The
defendant also disrupted the plaintiff’s water supwater supply to his unit
on the grounds that the plaintiff failed to pay maintenance and water
charges. The plaintiff then obtained an ex parte injunction against the
defendant restraining the defendant from doing all of the above. This was
the plaintiff’s inter partes application for the injunction. The defendant
raised a preliminary objection that there was a delay in the service of the
ex parte injunction order as a result of which O. 29 r. 1(2BA) of the Rules
of the High Court 1980 (‘RHC’) was not complied with. The plaintiff
explained thatthe delay was due to the court because the court returned the
sealed copy of the order late. Also, that many of the court officers were on
leave during the Deepavali and Hari Raya breaks in 2004.
Held (dismissing preliminary objection and allowing application):
(1) It was common knowledge that during the festive occasions particularly
during the Deepavali and the Hari Raya Puasa breaks in 2004 many court
officers were on leave. Therefore, it was not surprising that the sealed
copy of the ex parte injunction order was extracted late as a result of
which it was served late on the defendant. Based on O. 1A RHC read with O. 2
r. 1 RHC and O. 2 r. 3 RHC, the defendant’s preliminary objection was
dismissed. (paras 4 & 5)
(2) The defendant’s unilateral act of preventing the plaintiff entry in his
car based on monies purportedly owing without resort to court actions were
ultra vires ss. 52, 53, 53A and 75 of the Strata Titles Act 1985 (‘the
Act’). The defendant, too, had no legal basis to clamp the water supplies of
other owners of the parcels who owed water charges. At any rate, the
plaintiff always displayed a valid motor car sticker on the windscreen of
his motor car. In addition, the plaintiff was the registered
proprietor of his unit and held an indefeasible title to it. He also had a
proprietary interest in the car park bay 106 by virtue of the monies he paid
the developer towards the shared construction of the car park roof. It
followed that in view of the plaintiff’s age (78 years), mobility and
medical conditions,
justice of the case would lie in favour of the plaintiff as opposed to that
of the defendant. (para 23)
(3) The defendant had no right to re-allocate parking bays to the buyers of
the condominium that were first allocated by the developer of the
condominium. The allocation of the parking bays was confirmed in the first
AGM of the defendant. Re-allocations of parking bays were not subject to the
house rules and other decisions by the defendant. This was because s. 44 of
the Act gives no room for the execution of other rules other than the
additional by-laws obtained through a special resolution and submitted to
the Director of Land and Mines. (para 28)
4) The harm caused to the plaintiff if the injunction was not granted could
go from physical and life threatening to extreme inconvenience in view of
the plaintiff’s age, mobility and medical conditions. There was no proven
harm to the defendant other than being forced to comply with the provisions
of the Act particularly ss. 52, 53, 53A and 75 thereof should the injunction
be granted in favour of the plaintiff. (para 42)
(5) Damages was an adequate remedy for the defendant but not for the
plaintiff. The plaintiff would suffer pain and suffering if he was forced to
park his car outside the compound of the condominium and walk to his unit
after negotiating a difficult crossing of a busy road. (para 42)
(6) The balance of convenience lies in favour of the plaintiff.
Pending litigation on the merits of the case, the plaintiff should have
unrestricted access into the compound of the condominium in his car and
should enjoy his unit without having to suffer the clamping of his water
supply. (para 42)
Case(s)
referred to:
Assets Co v. Mere Roihi [1905] AC 176 (refd)
Boyd v. Mayor of Wellington [1924] NZLR 1174 (refd)
Bruton v. London & Quadrant Housing Trust [1998] QB 834 (refd)
Burns v. Edman [1970] 2 QB 541 (refd)
Creative Furnishing Sdn Bhd v. Wong Koi [1989] 2 CLJ 93 (refd)
Creelman v. Hudson Bay Insurance Co [1920] AC 194 (refd)
Dennis v. White [1916] 2 KB 1 (refd)
DPP v. Hynde [1998] 1 All ER 649 CA (refd)
FCT v. Orica Ltd [1998] 154 ALR 1 (refd)
Fels v. Knowles [1906] NZLR 604 (refd)
Frazer v. Walker [1967] 1 All ER 649 (refd)
Huth v. Huth [1915] 3 KB 32 CA (refd)
Keet Gerald Francis Noel John v. Mohd Noor & Ors [1995] 1 CLJ 293 CA (refd)
National Provincial Bank Ltd v. Ainsworth [1965] AC 1175 (refd)
Ng Hee Thoong & Anor v. Public Bank Berhad [1995] 1 CLJ 609 CA (refd)
Nye v. Niblett [1918] 1 KB 23 (refd)
Preston-Jones v. Preston-Jones [1951] AC 391 (refd)
R v. Luffe [1807] 8 East 193 (refd)
R v. Simpson [1983] 1 WLR 1494 CA (refd)
R v. Toohey; ex p Meneling Station Pty Ltd [1982] 158 CLR 327 (refd)
R v. Yap Chuan Ching [1976] 63 Cr App R 7 CA (refd)
Re Oxford Poor Rate Case [1857] 8 E & B 184 (refd)
Schultz v. Corwill Properties Pty Ltd [1969] 90 WN (Pt 1)(NSW) 529 (refd)
Yanner v. Eaton [1999] 166 ALR 258 (refd)
Legislation referred to:
Rules of the High Court 1980, O. 1A, O. 2 rr. 1(1), 3, O. 29 r. 1(2BA)
Strata Titles Act 1985, ss. 4, 6(1), 10(4), (5), 15(2)(c), (d), 16(1)(b),
19, 20, 21, 22, 23, 34(2), 39(1), (2), (3), 42(1), 43(1), (2)(a),
44(4), 45, 46, 52, 53A(1), (2), 54, 58, 59, 60, 61, 62, 63, 64, 65,
66, 67, 69, 70, 75(1), (2), 81, Form 2, 3, 7A
Other source(s) referred to:
Malaysian Parliamentary Debates (1985) Dewan Rakyat, 6th Parliament, 3rd
Session, vol. III, No: 14, pp. 2261-2264
Dewan Negara, 6th Parliament, 3rd Session, vol. III, No: 6, pp 970-974
D
For the plaintiff - Mahendran Ghasamoothy; M/s Mahendran & Fernandez
For the defendant - Jadadish Chandra; M/s Arbain & Co
Reported by Usha Thiagarajah
JUDGMENT
Abdul Malik Ishak
J:
Introduction
[1] This judgment should be of interest to those people who are
currently staying in condominium units throughout the country particularly
in the Peninsular Malaysia which include the States of Johore, Kedah,
Kelantan, Malacca, Negeri Sembilan, Pahang, Penang, Perak, Perlis, Selangor,
Terengganu and the Federal Territory of Kuala Lumpur. Management
corporations too are encouraged to read this judgment. The Strata Titles Act
1985 and its ramifications are set out in this judgment. Being a registered
proprietor of his condominium unit and having the proprietary interest to
car park bay 106, the plaintiff has the upperhand as compared to the
defendant. Management corporations should comply strictly to the provisions
of the Strata Titles Act 1985 without any let up. In Sabah and Sarawak, all
matters pertaining to the sub-division of buildings into parcels are
governed by the Sabah Land (Subsidiary Title) Enactment 1972 and by the
Sarawak Strata Titles Ordinance 1995 respectively. In Labuan, strata titles
are governed by the Federal Territory of Labuan (Modification of Land
(Subsidiary Title) Enactment) Order 1985 vide PU(A)372/1985 which came into
effect on 16 April 1984. Whereas in regard to Putrajaya, in exercise of the
powers conferred by s. 81 of the Strata Titles Act 1985, the Minister makes
the Strata Titles (Federal Territory of Putrajaya) Rules 2003 and it came
into operation on 9 January 2003. This judgment concerns strata titles in
Peninsular Malaysia and it puts into sharp focus the Strata Titles Act 1985.
The management corporations which consist of all the owners of the parcel
units are the medium through which the parcel owners control and manage the
strata schemes. The management corporations are responsible for a variety of
things. For instance, they are responsible for the maintenance and
management of the common properties, namely, open spaces, lifts, corridors,
staircases, swimming pools, badminton courts, tennis courts, squash courts,
gardens and other varied community facilities. The parcel units in respect
of which individual titles have been issued and registered would be
maintained by the registered proprietors. In maintaining and managing the
common facilities, the management corporations must abide strictly to the
Strata Titles Act 1985.
[2] Now, by way of encl. 3, the plaintiff sought for the following
orders:
1. An interim injunction to be issued against the defendant to restrain the
defendant, its servants and/or its agents from:
(a) preventing the plaintiff from entering the apartment project known as
the Crescent Court located at the district of Wilayah Persekutuan, in the
town of Kuala Lumpur at Lot No: 356 section 95 under permanent title 17371
('the said apartment') in his motor car bearing registration number WFP
7528;
(b) preventing the plaintiff from parking his motor car bearing registration
number WFP 7528 at car park bay 106 of the said apartment;
(c) disrupting or disconnecting the plaintiff's water supply other than with
the lawful authority arising from outstanding water bill payments or
legitimate water works or maintenance; and
(d) condoning such acts by any other third party or resident in the said
apartment to prevent the plaintiff's entry with his motor car bearing
registration number WFP 7528 into the said apartment and/or preventing the
plaintiff from parking his motor car at car park bay 106 and/or
disconnecting or obstructing the plaintiff's water supply without just
cause.
2. A date for the hearing of the inter partes interlocutory injunction for
the orders as sought for above to be fixed 21 days from the date of this ex
parte order, if granted.
3. The costs of this application be costs in the cause.
4. Such further or other relief thereto as this Honourable Court deems fit
and proper.
[3] On 2 November 2004, this court granted an ex parte injunction in
favour of the plaintiff upon the terms of encl. 3. By way of a preliminary
objection, the defendant took umbrage to the fact that the plaintiff did
not, up to the date of the filing of encl. 11 (that would be on 19 November
2004), serve the ex parte injunction order on the defendant and this meant,
according to the defendant, that the plaintiff had failed to comply with O.
29 r. 1(2BA) of the Rules of the High Court 1980 ("RHC") which reads as
follows:
(2BA) The ex parte interim injunction must be served on the relevant party
within one week of the date of the order granting the interim injunction,
and the Court when granting the injunction must forthwith fix a date for
inter partes hearing to be held before the expiry of the 21 days.
The plaintiff explained that the delay in the service of the ex parte
injunction order was entirely due to the court. It was said that the court
returned the sealed copy late. The plaintiff was apologetic about the whole
matter. The Deepavali and the Hari Raya Puasa breaks of 2004 were
instrumental for the delay because on those days the relevant court officers
were on leave. O. 1A of the RHC must be read with O. 2 r. 1(1) of the RHC as
well as with O. 2 r. 3 of the RHC and, when so read, the preliminary
objection advanced by the defendant would come to naught. Of pertinence
would be the need to have regard to the justice of the particular case and
not to be shackled by any technical non-compliance of any of the rules of
the RHC. Order 1A of the RHC reads as follows:
Order 1A
Court Or Judge Shall Have Regard To Justice
In administering any of the rules herein the court or a judge shall have
regard to the justice of the particular case and not only to the technical
non-compliance of any of the rules herein.
Order 2 r. 1(1) of the RHC states as follows:
1 Non-compliance with rules (O. 2 r. 1)
(1) Where, in beginning or purporting to begin any proceedings or at any
stage in the course of or in connection with any proceedings, there has, by
reason of any thing done or left undone, been a failure to comply with the
requirements of these rules, whether in respect of time, place, manner, form
or content or in any other respect, the failure shall be treated as an
irregularity and shall not nullify the proceedings, any step taken in the
proceedings, or any document, judgment or order therein.
And finally, O. 2 r. 3 of the RHC states as follows:
3. Preliminary objection for non-compliance of rules not allowed (O. 2 r. 3)
A court or judge shall not allow any preliminary objection by any party to
any cause or matter or proceedings only on the ground of non-compliance of
any of these Rules unless the court or judge is of the opinion that such
non-compliance has occasioned a substantial miscarriage of justice.
[4] It is common knowledge that during the festive occasions
particularly during the Deepavali and the Hari Raya Puasa breaks of 2004
many court officers were on leave. It is a common phenomenon throughout the
whole country. I can certainly take judicial notice of it. Certain facts are
certainly beyond dispute. They are so notorious or that they are of such
common knowledge that they require no proof and no evidence in rebuttal need
to be advanced. Examples of judicial notice without the need to hold an
inquiry are abound. The following authorities would serve as the guiding
principles:
(1) R v. Luffe [1807] 8 East 193;
(2) Preston-Jones v. Preston-Jones [1951] AC 391, HL;
(3) Burns v. Edman [1970] 2 QB 541;
(4) Re Oxford Poor Rate Case [1857] 8 E & B 184;
(5) Nye v. Niblett [1918] 1 KB 23;
(6) Dennis v. White [1916] 2 KB 1;
(7) Huth v. Huth [1915] 3 KB 32, CA;
(8) R v. Simpson [1983] 1 WLR 1494, CA;
(9) DPP v. Hynde [1998] 1 All ER 649, CA; and
(10) R v. Yap Chuan Ching [1976] 63 Cr. App R 7, CA.
[5] Thus, it was not surprising that the sealed copy of the ex parte
injunction order was extracted late and with the result that it was served
late on the defendant. For these reasons, I dismissed the defendant's
preliminary objection forthwith. I must now examine the merits of the inter
partes application in encl. 3.
Facts Of The Case
[6] The plaintiff is the owner and resident of a condominium unit
known as unit 17-B of the Crescent Court condominium complex in Lengkok Tun
Sambanthan, Brickfields, Kuala Lumpur (hereinafter referred to as the "said
unit"). The said unit remains un-encumbered and un-assigned to any party. At
all times that the plaintiff owned the said unit, he parked his motor car
bearing registration number WFP 7528 (hereinafter referred to as the "motor
car") at bay 106 of the Crescent Court condominium complex. Parking bay 106
was later allocated to the plaintiff during the first annual general meeting
of the Crescent Court management corporation. The plaintiff had no problems
when entering the Crescent Court condominium complex and parking his motor
car at bay 106 as well as obtaining water at the said unit. Everything went
well until 25 September 2004.
[7] On 25 September 2004, the plaintiff's motor car while displaying
the Crescent Court condominium complex car park sticker number 001 was
prevented entry and the right to park at bay 106. It seemed that this was on
the instructions of the defendant. Entry was later allowed, on 25 September
2004, after some deliberation between the plaintiff and the security guards
at the gate of the Crescent Court condominium complex. Entry was, however,
disallowed thereafter until service of the ex parte injunction order was
served on the defendant.
[8] The defendant retaliated. The defendant was most unhappy about
the ex parte injunction order. On 16 October 2004, the plaintiff's wife
discovered that the water supply to the said unit had also been interrupted
by way of a clamp clamping the water meter. The defendant too took steps to
prevent the plaintiff's motor car from entering the Crescent Court
condominium complex and to clamp the water supply to the plaintiff's unit in
order to recover monies purportedly due and owing to the defendant for
maintenance and water charges. The water clamp was subsequently removed,
later on the same day, by the defendant or its agents when no monies were
found due and owing by the plaintiff to the defendant in regard to the water
charges.
[9] Plagued by these inconveniences, the plaintiff had no choice but
to seek recourse to this court by filing encl. 3.
The Strata Titles Act 1985
[10] Strata title ownership is now fashionable in Malaysia. It has
been legislated along the lines of the Australian New South Wales
Conveyancing (Strata Titles) Act 1961 and it is now known as the Strata
Titles Act 1985. Basically, strata title ownership would mean that the
building is sub-divided into horizontal strata. This would in turn be
further divided into two or more parcels thereby allowing for separate
titles to be issued to each of the parcels. Section 4 of the Strata Titles
Act 1985 defines the word "parcel" in this way:
"parcel", in relation to a subdivided building, means one of the individual
units comprised therein, which (except in the case of an accessory parcel)
is held under separate strata title;
The Strata Titles Act 1985 have been upgraded to cater to the current
development and the socio-economic needs of the population (see the
Malaysian Parliamentary Debates (1985) Dewan Rakyat, Sixth Parliament, 3rd
Session, Volume III, No: 14 at 2261 to 2264 and the Dewan Negara, Sixth
Parliament, 3rd Session, Volume III, No: 6 at 970 to 974; and see also the
Explanatory Statement to the Strata Bills 1985) by adding new provisions
thereto. And these new provisions relate to:
(a) accessory parcels for car parks, stores and accommodation for employees
(ss. 6(1), 10(4) and (5), 34(2) and 69 of the Strata Titles Act 1985);
(b) provisional blocks in order to allow building projects to be built in
stages, stage by stage (ss. 16 (1)(b), 19 to 23 and 70 of the Strata Titles
Act 1985); and
(c) special provisions are made for low-cost strata schemes (ss. 58 to 67 of
the Strata Titles Act 1985).
[11] Management corporations are the conduit through which the parcel
proprietors control and manage the strata schemes. Under s. 39(1) of the
Strata Titles Act 1985, the management corporation comes into existence upon
the opening of a book of the strata register. Basically, the management
corporation is a statutory creation and shall be a body corporate having
perpetual succession and a common seal as postulated in s. 39(2) of the
Strata Titles Act 1985.
[12] Opening of a book of the strata register simply means that the
Registrar of Titles or the Deputy Registrar of Land Titles for the State in
relation to strata titles which are dependent on registry titles (see s. 4
of the Strata Titles Act 1985 where the word "registrar" is being defined)
or the Land Administrator for the district in relation to strata titles
which are dependent on land office titles (see s. 4 of the Strata Titles Act
1985 where the word "registrar" is being defined) is required to prepare and
maintain, for the purposes of the Strata Titles Act 1985, a register of
strata titles to be called as the "strata register". The words "strata
register" are defined in s. 4 of the Strata Titles Act 1985 as follows:
'strata register' means the register of strata titles maintained under the
provisions of s. 15.
[13] The strata register carries the following information:
(a) an index in Form 2 as set out in the Strata Titles Act 1985;
(b) the details as set out in Form 3 to the Strata Titles Act 1985;
(c) a copy of the certified strata plan prepared accordingly as alluded to
in s. 15(2)(c) of the Strata Titles Act 1985; and
(d) the register document of title to each parcel and each provisional block
as alluded to in s. 15(2)(d) of the Strata Titles Act 1985.
[14] Automatically, upon the opening of a book of the strata
register, there shall 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 as alluded to
in s. 39(1) of the Strata Titles Act 1985. According to s. 42(1) of the
Strata Titles Act 1985 the management corporation shall, on coming into
existence, become the proprietor of the common property and be the custodian
of the issue document of title of the lot.
[15] The duties of the management corporations are varied and far
between. They concerned the daily administration that has to be maintained
and managed. All the duties of the management corporations throughout the
country in Peninsular Malaysia are amply set out in ss. 43(1), 44(4), 45,
46, 54 and the by-laws in the Second and the Third Schedules of the Strata
Titles Act 1985.
[16] All management corporations may sue and be sued (s. 39(3) of the
Strata Titles Act 1985). And where a sum of money is recoverable by the
management corporation under the Strata Titles Act 1985 from a proprietor in
respect of:
(a) money expended by the management corporation on repairs or work which a
parcel proprietor, directed by any competent statutory or public authority
to do, has failed to perform (s. 43(2)(a) of the Strata Titles Act 1985);
(b) any contribution which a proprietor has failed to pay to the management
fund (ss. 45(5) and 45(5A) of the Strata Titles Act 1985); and
(c) any sum lawfully incurred by the management corporation and guaranteed
by a parcel proprietor under s. 52(1) of the Strata Titles Act 1985,
then those sums, if remaining unpaid, may be recovered by the management
corporation by way of an action for debt in any court of competent
jurisdiction as envisaged in s. 53(2) of the Strata Titles Act 1985.
[17] It must also be emphasised that whatever sum is due to the
management corporation shall be recoverable by the management corporation by
way of an action for debt in any court of competent jurisdiction as
envisaged in s. 75(2) of the Strata Titles Act 1985; and before resorting to
such an action, the management corporation may serve on the proprietor a
written notice requesting payment of the sum due within such period as may
be specified in the notice and the period shall not be less than two weeks
from the date of service of the notice as envisaged in s. 53(1) of the
Strata Titles Act 1985; and if upon expiry of the said period, the sum or
part of the sum still remains unpaid, then the management corporation may
proceed to serve on the proprietor another written notice, this time
demanding payment of the sum due within two weeks from the date of service
of the second notice as envisaged in s. 53(2) of the Strata Titles Act 1985;
and, again, in the event of non-compliance, the management corporation may
file a summons in any court of competent jurisdiction for the recovery of
the said sum as envisaged in ss. 53(2) and 75(1) of the Strata Titles Act
1985. Additionally, the sums owing may also be recovered under the Strata
Titles Act 1985 by way of an attachment of the movable property of the
defaulting proprietor as set out in ss. 53(2) and 53A of the same Act.
Furthermore, even the Land Administrator may, upon sworn application in
writing made by any member of the council of the management corporation,
issue a warrant of attachment in compliance with Form 7A of the Strata
Titles Act 1985 authorising the attachment of any movable property belonging
to the defaulting proprietor which may be found in the building or elsewhere
in the State as envisaged under s. 53A(1) of the Strata Titles Act 1985.
The Law On Interlocutory Injunction
[18] The classic case of Keet Gerald Francis Noel John v. Mohd Noor @
Harun bin Abdullah & 2 Ors. [1995] 1 CLJ 293, CA. should be referred to.
There, Gopal Sri Ram JCA speaking for the Court of Appeal laid down the law
in these lucid terms (see p. 305 to p. 306 of the report):
To summarise, a judge hearing an application for an interlocutory injunction
should undertake an inquiry along the following lines:
first, he must ask himself whether the totality of the facts presented
before him discloses a bona fide serious issue to be tried. He must, when
considering this question, bear in mind that the pleadings and evidence are
incomplete at that stage. Above all, he must refrain from making any
determination on the merits of the claim or any defence to it. It is
sufficient if he identifies with precision the issues raised on the joinder
and decides whether these are serious enough to merit a trial. If he finds,
upon a consideration of all the relevant material before him, including
submissions of counsel, that no serious question is disclosed, that is the
end of the matter and the relief is refused. On the other hand if he does
find that there are serious questions to be tried, he should move on to the
next step of his inquiry;
second, having found that an issue has been disclosed that requires further
investigation, he must consider where the justice of the case lies. In
making his assessment, he must take into account all relevant matters,
including the practical realities of the case before him. He must weigh the
harm that the injunction would produce by its grant against the harm that
would result from its refusal. He is entitled to take into account, inter
alia, the relative financial standing of the litigants before him. If after
weighing all matters, he comes to the conclusion that the plaintiff would
suffer greater injustice if relief is withheld, then he would be entitled to
grant the injunction especially if he is satisfied that the plaintiff is in
a financial position to meet his undertaking in damages. Similarly, if he
concludes that the defendant would suffer the greater injustice by the grant
of an injunction, he would be entitled to refuse relief. Of course, cases
may arise where the injustice to the plaintiff is so manifest that the judge
would be entitled to dispense with the usual undertaking as (to) damages
(see Cheng Hang Guan & Ors v. Perumahan Farlim (Penang) Sdn Bhd & Ors [1988]
3 MLJ 90). Apart from such cases, the judge is entitled to take into account
the plaintiff's ability to meet his undertaking in damages should the suit
fail, and, in appropriate cases, may require the plaintiff to secure his
undertaking, for example, by providing a bank guarantee; and
thirdly, the judge must have in the forefront of his mind that the remedy
that he is asked to administer is discretionary, intended to produce a just
result for the period between the date of the application and the trial
proper and intended to maintain the status quo, an expression explained by
Lord Diplock in Garden Cottage Foods Ltd v. Milk Marketing Board (1984) AC
130; [1983] 2 All ER 770; [1983] 3WLR 143 and applied in Cheng Hang Guan. It
is judicial discretion capable of correction on appeal. Accordingly, the
judge would be entitled to take into account all discretionary
considerations, such as delay in the making of the application or any
adequate alternative remedy that would satisfy the plaintiff's equity, such
as an award of monetary compensation in the event he succeeds in
establishing his claim at the trial. Any question going to the public
interest may, and in appropriate cases should, be taken into account. A
judge should briefly set out in his judgment the several factors that
weighed in his mind when arriving at his conclusion.
To The Heart Of The Matter
[19] I will now dutifully go through the rigmarole of examining the
three stages propounded by Gopal Sri Ram JCA in Keet Gerald Francis Noel
John.
Bona Fide Serious Issues To Be Tried
[20] The learned counsel for the defendant argued along the following
lines. That there was no injustice to the plaintiff if the relief sought was
denied by this court. That the effect of denying the relief to the plaintiff
meant that in the absence of a valid motor car sticker, the plaintiff would
have to park his motor car outside the defendant's compound. Other than a
slight inconvenience there really was no injustice. Alternatively, it was
argued by the learned counsel for the defendant, that if the plaintiff was
minded to park his motor car at the parking bay number 106, all the
plaintiff has to do was to apply for a valid motor car sticker. In regard to
the disruption of the water supply, it was part and parcel of the
defendant's defence that the defendant did not clamp the plaintiff's water
meter. It was argued that it was the plaintiff who self clamped the water
meter. According to the defendant, the plaintiff should not fear the
discontinuance of the water supply so long as he settled all his arrears and
was up to date with the payment of the maintenance charges to his unit -
referring to the said unit. Conversely, it was argued by the learned counsel
for the defendant, that in the event the injunction was granted, the
defendant would suffer great injustice in that it would create a class of
persons who can openly declare that they will not pay the monthly
maintenance charges and yet be entitled to all the benefits of the common
area within the defendant's premises at the Crescent Court condominium
complex. In such a situation, there would be ill feeling between law abiding
owners of the Crescent Court condominium complex and the likes of those
people who behave like the plaintiff. It was argued by the learned counsel
for the defendant that it would tempt other owners of the Crescent Court
condominium complex not to pay their monthly maintenance charges. It would
lead to a dangerous precedent. I was urged to send a loud and clear message
to persons like the plaintiff who, on the one hand, do not want to honour
their obligations as parcel owners but, on the other hand, run to the courts
seeking assistance in the form of a mandatory injunction which allow them to
enjoy the condominium's amenities managed by the management corporation
without paying the maintenance charges and/or complying with the house
rules. It was emphasised that the plaintiff now lives in another place known
as the Palm Court and that the plaintiff's usage of only two cubic metres of
water per month at the Crescent Court condominium complex shows that the
said unit is no longer his residential home.
[21] The plaintiff took exceptions to the submissions of the
defendant. It was submitted by the learned counsel for the plaintiff that in
other situations involving a younger party without visual and movement
complications, there would be less complications caused in requiring the
younger party to park his motor vehicle outside the condominium complex and
requiring the younger party to cross the road and walk into the compound of
the condominium complex. It was pointed out that according to the affidavit
evidence, the plaintiff is 78 years of age and his wife is 68 years of age.
By reason of the plaintiff's advanced age, I was asked to take judicial
notice of the fact that the plaintiff's movements would be both restricted
and slow thereby making it hazardous for him to cross a busy road especially
when he carries a heavy shopping bag with him. The matter was said to be
compounded further by the fact that the plaintiff is still recovering from
an eye surgery and that the problems would aggravate further in bad weather.
For these reasons, it was submitted that it was wrong to say that the
plaintiff would not be inconvenienced or that injustice would not befall him
or that the plaintiff would not be put in danger when he is required to park
his motorcar outside the Crescent Court condominium complex and walk in. The
impracticality of the defendant's suggestion was further enhanced by the
fact that the plaintiff has an inextinguishable (as long as he remains the
owner of the said unit) indefeasible title to the said unit and proprietary
interest to the car park bay 106. It was emphasised that the denial of an
exercise of a proprietary interest to the car park bay 106 by the defendant
to the detriment of the plaintiff constituted an injustice occasioned to the
plaintiff.
[22] My attention was drawn to the fact that the defendant prohibited
the plaintiff's motor car correctly displaying a valid motor car sticker
number 001, which has been recently replaced by the defendant with the 2005
sticker, entry into the defendant's premises. If this was not injustice, I
do not know what is!
[23] In regard to the policy argument that the grant of the
injunction would cause grave injustice to the defendant, I have this to say.
Since no concrete attempt to comply with the Strata Titles Act 1985 in
recovering monies due to the defendant has yet to be initiated by the
defendant nor any evidence of doing so being presented by the defendant, the
policy argument advanced by the defendant remains unfounded because the
defendant seems to be uninterested in executing its rights and obligations
under the law. The unilateral act of preventing entry based on monies
purportedly owing and the issuance of the final notice emanating from the
defendant as seen in exh. "JS1-3" of the supporting affidavit of the
plaintiff in encl. 5 without resort to court actions are ultra viresss. 52,
53, 53A and 75 of the Strata Titles Act 1985. The final notice in exh.
"JS1-3" of encl. 5 was worded as follows:
Final Notice
Date: 6th October 2004
To
All Owners
Please Take Note That All Contributions (Maintenance Charges, Water Bills,
Refurbishment Funds, Insurance And Other Charges) Owing To Ccmc Have To Be
Paid By The 15th Of October 2004.
The Management May Disconnect Water Supply And Deny Entry To Vehicles If
Payments Are Not Made By This Date.
We Do Not Believe This Course Of Action Is Preferred But Due To The Current
Inability Of The Management To Offer Proper Maintenance Services We Are
Forced To Act More Decisively.
Please Take This Notice Very Seriously.
Sgd
Visvalingam Dorairaju
On Behalf Of The,
Management Council
Crescent Court Management Corporation
[24] And ss. 52, 53,53A and 75 of the Strata Titles Act 1985 are
worded in this way:
The recovery of sum as debt due to management corporation
52 (1) The payment of any amount lawfully incurred by the management
corporation in the course of the exercise of any of its powers or functions
or carrying out of its duties or obligations shall by virtue of this section
be guaranteed by the proprietors for the time being constituting the
management corporation, each proprietor being liable under such guarantee
only for such proportion of the money so incurred as the share units of his
parcel or the provisional share units of his provisional block bear to the
aggregate share units.
(2) Where any proprietor has not discharged or fully discharged his
liability for the purpose of sub-s. (1), the management corporation shall be
entitled to recover from the proprietor in any court of competent
jurisdiction as a debt due to it.
(3) Where for reasons of insufficiency of fund to meet the sum guaranteed
under sub-s. (1), the management corporation may at an annual general
meeting or at an extraordinary general meeting determine the amount to be
contributed by each proprietor and decide any other issue or matter relating
to the settlement of the said sum.
[Am. Act A753.]
Recovery of sums due
53. (1) Where a sum becomes recoverable by the management corporation from a
proprietor by virtue of paragraph 43(2)(a), sub-s. 45(5) or (5A) and sub-s.
52(2), the management corporation may serve on the proprietor a written
notice requesting payment of the sum due within such period, which shall not
be less than two weeks from the date of service of the notice, as may be
specified in the notice.
(2) If at the end of the period specified in the notice under sub-s. (1) the
sum or part of the sum due remains unpaid, the management corporation may
serve on the proprietor a written notice demanding payment of the sum due
within two weeks from the date of service of the notice; and if upon expiry
of the said period, the sum due still remains unpaid, the management
corporation may file a summons in any court of competent jurisdiction for
the recovery of the said sum or, in addition or as an alternative to
recovery under this section, resort to recovery under s. 53A.
[Am. Act A753.]
Recovery of sums by attachment of movable property
53A. (1) In the like circumstances in which the management corporation may,
by virtue of sub-s. 53(2), file a summons for the recovery of a sum which
becomes recoverable as mentioned in sub-s. (1) of that section, the Land
Administrator may, upon sworn application in writing made by any member of
the council of the management corporation, issue a warrant of attachment in
Form 7A authorising the attachment of any movable property belonging to the
defaulting proprietor which may be found in the building or elsewhere in the
State.
(2) The warrant shall be executed by a member of the council of the
management corporation or by a person specially employed by the council to
execute such warrants; and a person executing the warrant shall be deemed to
be a public servant for the purposes of the Penal Code [Act 574].
(3) A person executing the warrant:
(a) may, in the daytime, effect forcible entry into any house or building or
any part thereof for the purpose of executing the warrant; and
(b) shall, immediately after attachment, make an inventory of the property
attached under the warrant and serve a notice in form 7B on the person who,
at the time of attachment, was or appeared to be in possession of the
property.
(4) If any person whose property is attached disputes the legality of the
attachment, he may, within fourteen days of the date of attachment, apply to
the Magistrate's Court having jurisdiction in the place of attachment for an
order for the release of the property, and the Magistrate's Court, after
making such enquiry as may be necessary, shall grant or refuse to grant the
order.
(5) If the sum due is not paid within fourteen days from the date of
attachment, the property attached or such portion thereof as may be
sufficient to realise the sum shall be sold by public auction, unless within
that period an application is made under sub-s. (4), in which case the
property shall be held pending the decision of the Magistrate's Court and
shall then be dealt with as the Magistrate's Court may order.
(6) If the Magistrate's Court refuses to grant an order for the release of
the property, and that decision of the Magistrate's Court is reached within
fourteen days from the date of attachment, the property shall not be sold
before the expiry of that period.
(7) Notwithstanding sub-s. (5) and (6), if the property is of a perishable
nature, it may be sold at once, and in that case the proceeds of sale shall
be held pending the decision of the Magistrate's Court and shall then be
dealt with as the Magistrate's Court may order.
(8) In any other case, the proceeds of sale shall be applied in satisfaction
of the sum due together with the costs of the attachment and sale, and any
surplus and any property not sold shall be paid or returned to the person
who, at the time of attachment, was or appeared to be in possession of the
property.
(9) The costs of attachment shall include the expenses of the maintenance of
livestock and the custody of movable property.
(10) In this section, unless the context otherwise requires, 'proprietor',
in relation to the recovery of a sum recoverable by virtue of sub-s. 45(5)
or (5A) from a parcel proprietor, includes any successor in title to the
parcel proprietor.
(11) Where any property is sold by virtue of sub-s. (7) before the expiry of
fourteen days from the date of attachment, the reference in sub-s. (4) to an
order for the release of the property shall be construed as a reference to
an order for the release of the proceeds of the sale of the property.
[Ins. Act A753.]
Legal proceedings
75. (1) Every application to the court under this Act shall be by summons in
Chambers.
(2) Where there is provision for a sum to be recoverable by any person or
any authority from any other person or authority the sum shall be
recoverable by an action for debt in any court of competent jurisdiction.
These sections are self explanatory. They are meant to regulate the way in
which substantive rights and obligations are claimed, proved and enforced.
Only the court of competent jurisdiction can resolve the dispute between the
two parties. The intention of our Parliament is well documented in the long
title and preamble to the Strata Titles Act 1985. It states as follows:
An Act to facilitate the subdivision of building into parcels and the
disposition of titles thereto and for purposes connected therewith.
[West Malaysia and Federal Territory - 1 June 1985, P.U.(B)276/85]
WHEREAS it is desired to introduce in the form of a Strata Titles Act a
uniform legislation within the States of Johore, Kedah, Kelantan, Malacca,
Negeri Sembilan, Pahang, Penang, Perak, Perlis, Selangor, Terengganu and the
Federal Territory of Kuala Lumpur;
AND WHEREAS it is now expedient for the purpose only of ensuring uniformity
of law and policy to make with respect to tenure of parcels in a building,
registration of titles relating to parcels in a building, transfer of
parcels in building, leases and charges in respect of parcels in a building,
and easements and other rights and interests in parcels in a building;
[25] Now, in regard to the current place of residence of the
plaintiff at the Palm Court as pointed out by the defendant, that, with
respect, cannot alter the indefeasible title of the plaintiff to the said
unit. The plaintiff to this day still holds the indefeasible title to the
said unit and he is still ordinarily a resident at the Crescent Court
condominium complex. No concrete evidence has been advanced by the defendant
to suggest otherwise. Even the low water usage by the plaintiff at the said
unit which evidence was put in by way of a submission cannot displace the
plaintiff's indefeasible title to the said unit. The strata title to the
said unit has been issued in favour of the plaintiff as reflected at exhibit
"JS1-1" of encl. 5 and that would give rise to the concept of
indefeasibility. The court in Fels v. Knowles [1906] NZLR 604 at p. 620
aptly said that:
The cardinal principle ... is that the register is everything and that,
except in cases of actual fraud on the part of the person dealing with the
registered proprietor, such person, upon registration of the title under
which he takes from the registered proprietor, has an indefeasible title
against all the world.
Indefeasibility connotes conclusiveness that is given to an estate or
interest directly upon registration. Upon registration it is said that the
title becomes unimpeachable (Assets Co. v. Mere Roihi [1905] AC 176) or
unexaminable (Creelman v. Hudson Bay Insurance Co. [1920] AC 194) simply
because the State guarantees the correctness of the particulars found in the
title. The court in Frazer v. Walker [1967] 1 All ER 649 at p. 652 defines
the word "indefeasibility" in this unique way:
... it is a convenient description of the immunity from attack by adverse
claim to the land or interest in respect of which he is registered, which a
registered proprietor enjoys. The conception is central in the system of
registration. It does not involve that the registered proprietor is
protected against any claim whatsoever; ... there are provisions by which
the entry on which he relies may be cancelled or corrected, or he may be
exposed to claims in personam. These are matters not to be overlooked when a
total description of his rights is required; but as registered proprietor,
and while he remains such, no adverse claim (except as specifically
admitted) may be brought against him.
The key word here is "registration". Upon registration, indefeasibility
comes into play. Thus, indefeasibility is given upon registration to a
statutory estate and it is also given to a registered interest like a
charge. Strictly speaking, under the Torrens system, until an instrument is
registered, it has no effect in creating an interest or estate in land. But
once it is registered by the State, the title becomes a good title subject
to certain statutory and overriding exceptions. The court, in Boyd v. Mayor
of Wellington [1924] NZLR 1174 at 1187, held the view that if "a person gets
a registered title he, not having been guilty of any fraud, his title is
conclusive". The court too, in Schultz v. Corwill Properties Pty Ltd [1969]
90 WN (Pt.1)(NSW) 529 at p. 535, held the view that the register
"establishes title".
The Car Park Bay 106
[26] The defendant do not deny that the plaintiff is the registered
owner of the said unit. But the defendant held the views that the car
parking bay 106 was allocated to the plaintiff and it was not purchased by
the plaintiff. According to the defendant, the plaintiff averred that he was
billed for the roof that was built over the car park bays. However, the
plaintiff has not given any evidence of him having made payments for the
construction of the roof to cover the car park bays. According to the
defendant, the costs of construction of the roof to cover the car park bays
was pro-rated and all the owners paid equally. The stand of the defendant
was this. That the plaintiff did not purchase the parking bay 106; it was
only allocated to the plaintiff. Upon allocation, the parking bay 106 was
said to be liable to be relocated if the management council so desires in
the larger interest of the management corporation. In short, according to
the defendant, usage of parking bay 106 is subject to the defendant's house
rules as well as to the resolutions of the Annual General Meeting ("AGM") or
the Extraordinary General Meeting ("EGM") of the defendant. Thus, for
instance, a bay may be required for landscaping or re-alignment to cater for
a greater or a fewer number of cars. There could be a host of other reasons.
It was argued by the defendant that the plaintiff has no proprietary right
to the parking bay 106 because he did not purchase it but rather it was
allocated to him.
[27] Perhaps the nagging issue of the ownership of the allocated
parking bay 106 remains a legal quandary. The plaintiff does not dispute
that the parking bay 106 was allocated to him. But the plaintiff holds the
view that he has an exclusive licence to use the parking bay 106 and this in
turn gives him a proprietary interest over it. Evidence of the monies paid
to the developer towards the shared construction of the car park roof which
served as consideration towards the crystallisation of this proprietary
interest has been well presented by the plaintiff in his affidavit in encl.
13 that was affirmed on 13 December 2004. The letter from the plaintiff to
the developer dated 7 October 1982 marked as exhibit "JDDS2" annexed to
encl. 13 was worded in this way:
John Denis de Silva
Apartment No. 17B
16th Floor, Crescent Court
off Jalan Brickfields
Kuala Lumpur
October 7, 1982
Syarikat Harta Tanah Kresen Sdn. Bhd.,
No. 18-A, Jalan Parry,
Kuala Lumpur 04-04.
Dear Sir
Re: Proposed Construction of Roof Covers for Car Park at Crescent Court,
Jalan Brickfields, Kuala Lumpur Apartment No. 17-B
Your letter of 17th September 1982 refers.
I note that the roof covers are in the process of completion and also note
that I have not paid the RM300.00 demanded by you as my share.
I would like to refer you to my agreement dated 17 September 1979 wherein I
agreed to pay 1/110 share of the cost of construction in the event the car
park is covered (see paragraph 3 of the said letter of agreement drafted by
you and signed by me).
I would like to put it on record that I never undertook to make progress
payments and only undertook to pay 1/110's share of the cost which I am and
always have been prepared to pay. Kindly let me have the Architect's
Certificate of completion together with an account of total cost and my
share thereof.
I dispute your right to withdraw my parking lot No. 106 which was allocated
to me and in the event that you will proceed to carry out your threat
contained in paragraph 3 of your letter of 17 September 1982 I shall have no
choice but to apply to Court for an injunction and the costs of such
application will be for your account.
I suggest you consult your legal advisors who will be able to advise you on
what you can demand under the Sale and Purchase Agreement and under the
agreement of 17 September 1979 as all the notices of demand which have
to-date been received by me are outside the scope of our two apartments.
Yours sincerely
Sgd
And another letter dated 10 February 1983 from the developer to the
plaintiff marked as exh. "JDDS3" annexed to encl. 13 was worded in this way:
10 February 1983
Mr. John Denis De Silva,
Apartment No. 17B,
16th Floor, Crescent Court,
Off Jalan Brickfields,
Kuala Lumpur.
Dear Sir,
Re: Flat 17B, Crescent Court
Arrears of Maintenance and Other Charges
We write to refer to your letter dated 20th September, 1982 and to submit
the following in reply to the matters raised therein accordingly.
1) On alteration to building plans
There are no alterations to the Plan but that the developers erected 2 (two)
penthouses on the uppermost floors of the Building which do not affect the
purchasers materially. There was no objection from you or any other
purchasers then to this addition.
As to the division of the common property, you would realise that you now
pay 1/110 share (instead of 1/108) of the maintenance charges which in fact
benefits you. Any suggestion for a smaller fraction of the Maintenance
Charges would likewise reduce your share in the common property
proportionately.
We feel any change to this could not be acceptable to the other
purchasers/owners.
2) Vacant Possession
Major cause of the delays in the construction were primary (sic)(primarily)
caused by the delay in the Purchasers in accepting the increase in the
building cost of the flat. Further delays were caused by the death of the
late Datuk Eric Taylor. No liability on the Developers.
3) Strata Titles
The company is applying for the amalgamation of various lots which is a
requisite in law prior to applying for sub-division towards obtaining the
strata titles. The company is now awaiting the approval of the application
for the amalgamation which would take its normal course.
4) Maintenance Deposit
The amount of RM200 requested as deposit for maintenance charges is
reasonable as it does not even amount to two months' charges.
5) Maintenance Charges
Maintenance Charges are payable by every owner of the Flat ever since the
inception of the Crescent Court Building and apart from the monthly fee of
RM110, the RM200 deposit, etc., other charges incurred by the Management on
provision of any new amenities or renovations/repairs to existing ones or
use of water for cleaning of public areas, to quote to specific example, are
pro-rated amongst the Flat owners. There is no question of any Flat owner
not abiding by this arrangement!
6) Short Collection on Charges
This is covered by explanation in para. 5 above.
7) Proposed Construction of Roof Cover for Cars
You will be advised of this when we receive the certificate. However, the
total cost of construction of the roof covers = RM31,649.65. You will be
billed your share of it accordingly in due course.
8) Restoration of Compound Wall Lighting
The total cost is RM3,165.
Yours faithfully,
Sgd
Sharikat Harta Tanah Kresen Sdn. Bhd.
[28] These two letters favoured the plaintiff in its entirety. In
sharp contrast, there was no evidence to the contrary that has been
presented by the defendant. It is a correct assertion to say that the
allocations of the car park bays by the developer to the buyers of the
Crescent Court condominium complex which were later confirmed in the first
AGM of the defendant are not subject to the house rules and other decisions
by the defendant in regard to the re-allocations of car park bays because s.
44 of the Strata Titles Act 1985 gives no room for the execution of other
rules other than the additional by-laws obtained through a special
resolution and submitted to the Director of Lands and Mines. For
completeness, I will now reproduce s. 44 of the Strata Titles Act 1985:
By-laws for the regulation for a subdivided building
44. (1) The by-laws set out in the Third Schedule shall, as and from the
opening of a book of the strata register be in force for all purposes in
relation to every subdivided building and shall not be amended by the
management corporation.
(2) The management corporation may by special resolution make additional
by-laws, or make amendments to such additional by-laws, not inconsistent
with the by-laws set out in the Third Schedule, for regulating the control,
management, administration, use and enjoyment of the subdivided building.
(3) The by-laws for the time being in force in respect of the subdivided
building shall bind the management corporation and the proprietors to the
same extent as if they constituted properly executed agreements:
(a) on the part of the management corporation with each proprietor; and
(b) on the part of each proprietor with every other proprietor and with the
management corporation,
to observe and perform all the provisions of the by-laws.
(4) The management corporation shall:
(a) keep a record of the by-laws in force from time to time;
(b) on receipt of an application in writing made by a proprietor or by a
person duly authorised to apply on behalf of a proprietor for a copy of the
by-laws in force, supply to such proprietor or duly authorised person at a
reasonable cost a copy of the by-laws; and
(c) on the application of any person who satisfies the management
corporation that he has a proper interest in so applying, make such by-laws
available for inspection.
(5) No by-law is capable of operating:
(a) to prohibit or restrict the transmission, transfer, lease or charge of,
or any other dealing with any parcel of a subdivided building; and
(b) to destroy or modify any easement expressly or impliedly created by or
under this Act.
(5A) In sub-s. (5) 'easement' includes a right or obligation created by s.
35.
(6) A copy of any by-laws made by the management corporation under sub-s.
(4) and any amendment of any by-laws for the time being in force, certified
as a true copy under the seal of the management corporation, shall be lodged
by the management corporation with the Director within thirty days of the
passing of the resolution by the management corporation approving the
by-laws.
(7) The management corporation or any proprietor shall be entitled to apply
to a court of competent jurisdiction:
(a) for an order to enforce the performance of, or restrain the breach of,
any by-laws by: or
(b) to recover damages for any loss or injury to any persons or properties
arising out of the breach of any by-laws from,
any persons bound to comply therewith, the management corporation or the
administrator, and the court may make such order against any such persons,
the management corporation or the members of its council, or the
administrator, as the court thinks fit. [Am.Act A753.]
The sum total of it all would be this. That in the absence of any evidence
of a special resolution making the house rules a by-law in the Crescent
Court condominium complex, all references and executions of house rules
unilaterally made by the defendant must be deemed to be void ab initio
because they are ultra vires the procedures and powers of the management
corporation under the Strata Titles Act 1985. That being the case, the
defendant has certainly no right whatsoever to re-allocate car park bays to
the buyers of the Crescent Court condominium complex in general and to the
plaintiff in particular.
[29] It must be recalled to mind that the plaintiff had been using
car park bay 106 when the plaintiff took occupation of the said unit in
September 1979. The first AGM of the defendant had confirmed the developer's
allocation of car park bay 106 for the exclusive use of the plaintiff since
September 1979. It seemed that it was the commonly accepted policy in the
Crescent Court condominium complex that allocated car park bays were for the
exclusive use of the parties to which the said bays were allocated to. It
was also the common practice in the Crescent Court condominium complex as
well as other such complexes in the country that car park bays allocated to
a particular apartment or a condominium unit must follow that apartment or
unit when the same was sold. Pursuant to a complaint by the other residents
that covered car park bays were insufficient and some residents had to make
do with uncovered car park bays, the developer proposed that a roof be
constructed over the uncovered car park bays and the costs of such
construction would be borne by all the residents equally. The plaintiff as
alluded to earlier had paid his share of the costs and this thereby
consolidated his interest in land over car park bay 106 that had been
allocated to him. In my judgment, the plaintiff had a proprietary interest
in land over the car park bay 106. As the registered proprietor of the said
unit and the said unit being unassigned to any other party, the plaintiff
clearly has the ownership or the legal title over the said unit and the
proprietary interest in the car park bay 106 flowed with that of the said
unit. Evidence of the proprietary interest over the car park bay 106 can be
seen when the said car park bay was allocated to the plaintiff in late 1979
and the subsequent monetary payment for the roof construction over the
uncovered car park bays strengthened the plaintiff's proprietary interest
thereto. Lord Wilberforce in National Provincial Bank Ltd v. Ainsworth
[1965] AC 1175 attempted to define a right in rem or a proprietary interest
in this way (see p. 1247 to p. 1248):
Before a right or an interest can be admitted into the category of property,
or of a right affecting property, it must be definable, identifiable by
third parties, capable in its nature of assumption by third parties, and
have some degree of permanence or stability.
This very passage was cited by Mason J., in R v. Toohey; Ex parte Meneling
Station Pty Ltd [1982] 158 CLR 327 at 342-3, 44 ALR 63, with some measure of
qualified approval. But Gummon J, in FCT v. Orica Ltd [1998] 154 ALR 1, 72
ALJR 969 at 992 was quite bold when his Lordship criticised the decisions of
Ainsworth and Toohey and said that those two decisions were not concerned
with the existence of a proprietary interest created under the general law
of contract. The court in Ainsworth dealt with the development of the
"deserted wife's equity" while the court in Toohey considered the rights
created by a certain statute.
[30] I am of the considered view that the general definition of a
proprietary interest as propounded by Lord Wilberforce in Ainsworth is an
illuminating and apt definition deserving a high degree of compliment. Mason
J, in Toohey acknowledged that the proposition of Lord Wilberforce in
Ainsworth that a property right must be "capable in its nature of assumption
by third parties" which must necessarily mean capable of alienation,
constitutes one of the essential characteristics of the right to be attached
to a proprietary interest. I think that right is the right of disposition.
It is a correct assertion to make, and I so make, that the interest must be
capable of disposition before it will be classified as proprietary.
Property, according to Gleeson CJ, Gaudron, Kirby and Hayne JJ, in Yanner v.
Eaton [1999] 166 ALR 258 at 264, "consists primarily in control over
access". And McHugh J, in Yanner v. Eaton (supra) at p. 272 describes it as
a "relationship between owner and object by reference to the power of the
owner to deal with the object to the exclusion of all others, except a joint
owner."
[31] Wisdom dictates that in order to enjoy proprietary interest as
distinct from merely personal interest, rights in land must be capable of
third party involvement. Justice Millett LJ in Bruton v. London & Quadrant
Housing Trust [1998] QB 834 at p. 845E aptly said:
The essence of a legal estate is that it binds the whole world, not just the
parties to the grant and their successors.
[32] The defendant's interest in preventing the entry of the
plaintiff's motor car was solely for monetary purposes and it has no
relation whatsoever to the proprietary interest of the plaintiff. In
publicising the course of action to be taken by the defendant as seen in exh.
"JS1-3" of encl. 5 as reproduced earlier and executing the same, whatever
the motives of the defendant may be, was clearly wrong in law. The Crescent
Court condominium complex with strata titles duly issued and with an
incorporated management corporation was bound by the procedures as set out
in the Strata Titles Act 1985 in particular ss. 52, 53, 53A and 75 thereof.
The Strata Titles Act 1985 clearly specifies the procedures the defendant
need to adhere to in recovering whatever sums due to it and in what
proportions payable to the defendant by an owner of a particular unit that
has been issued with a strata title. Simply put, the procedure being the
issuance of two concurrent notices of demand each with a 14 day compliance
period after which the claim must be referred to a court of competent
jurisdiction as set out in s. 53 of the Strata Titles Act 1985. And
according to s. 53A of the Strata Titles Act 1985 an attachment of movable
property can only be done by the Land Administrator after a summons for the
recovery of the sums owing has been filed in court. In addition thereto, s.
75 of the Strata Titles Act 1985 makes reference to the legal proceedings
that should be undertaken under the said Act. Sadly, the defendant had
clearly not adhered to these procedures and had blatantly proceeded to
interfere with the plaintiff's enjoyment of his legal ownership to the said
unit and the proprietary interest to car park bay 106. As I said earlier,
there was no averment by the defendant of any actions taken by them in
harmony with the statutory requirements of the Strata Titles Act 1985. All
the owners of the Crescent Court condominium complex own the common property
administered by the defendant. Car park bay 106 was allocated to the
plaintiff for his sole use and such allocation has been confirmed by the
first AGM of the defendant.
The Right Of Unrestricted Entry
[33] According to the defendant there is no unrestricted right of
entry. And that the ultimate say in matters of this nature lie with the
management corporation like the defendant herein. The final notice as
alluded to earlier notifying all the owners of the Crescent Court
condominium complex that if the maintenance charges were not paid by 15
October 2004 the defendant may disconnect the water supply and deny entry to
vehicles of the respective owners. The plaintiff's complaints of being
denied entry with his motor car that were said to have happened on 25
September 2004 at about 11.25am and on 13 October 2004 were categorically
denied by the defendant. Interestingly, the defendant drew this court's
attention to the plaintiff's letter dated 24 May 2004 that was annexed to
the affidavit in reply of the defendant in encl. 16 marked as exh. "MU11".
That letter was written by the plaintiff when he was holding office as
chairman of the defendant. That letter certainly makes for an interesting
reading material and for completeness it will now be reproduced:
CRESCENT COURT MANAGEMENT CORPORATION
Ground Floor, Crescent Court Lengkok Tun Sambanthan,
50470 Kuala Lumpur. Tel: 22741645
Metro Security Services Sdn Bhd
92, Jalan Tun Sambanthan,
50470 Kuala Lumpur.
24th May 2004
Dear Sirs,
Security Guard Services to Crescent Court
We regret to inform you that we wish to terminate currently monthly
arrangement we have with you for provision of Security Guard Services to
Crescent Court effective on 31st May 2004 at 8 pm.
We have informed you of out(sic)(our) complaints about the Security Guards
whom you have been allocating for duty at Crescent Court on numerous
occasions and despite our building Manager's discussions with you, service
has not improved.
Since the beginning of 2004 we have had one Security Guard arrested for drug
related offences committed on the premises of Crescent Court, 4 tyres of one
vehicle were slashed during the night shift, two fires occurred in the
common property in early morning. These events have occurred but the
Security Guards on duty were unable to give any useful information regarding
these events except to report them.
Several owners have complained that no guards have been manning the gate
when they took their children to school and children were found playing in
the drive (sic)(driveway) and near the gate. One owner placed a phone call
to the mobile phone number of your organisation to enquire where the guards
were. The owner complained that he could not move his car from his parking
bay because there was a lorry blocking his car. The guards were unable to
locate the owner of the lorry and when he finally emerged from the building
he informed the owner that the Security Guard told him to park there.
On frequent occasions persons not in uniform manned the gate. We do not know
whether they were your guards or friends of guards relieving them without
your knowledge. On Saturday 22.5.2004 just after 7 pm the gate was again
manned by two men not in uniform who were sitting on two chairs near the
gate chatting while the gate was wide open and vehicles were coming in
without hindrance resulting in several owners quarrelling with persons who
had parked in their bays. The car had no sticker and should not be in the
car park at all!
The Management Council can no longer wait for improved service, which,
instead of improving has deteriorated, and more and more complaints have
been received. A decision to terminate your service was taken by the
Management Council. Please instruct the Security Guards who will be on duty
on 31st May 2004 on the 8 am shift to hand over to the Building Manager all
records, documents and keys kept by them in the guard house before their
shift ends at 8 pm.
Yours faithfully,
Crescent Court Management Council
Sgd
J.D. de Silva
Chairman
[34] Now, according to the defendant, the plaintiff's argument that
the defendant's interest in preventing the entry of the plaintiff's motor
car was solely for monetary purpose and not related to the plaintiff's
proprietary interest should be seen in the context of the large majority of
the owners who demand that the defendant enforce the house rules strictly
and that entry should only be allowed for motor cars with valid stickers
bearing in mind that the defendant had received many complaints of
unauthorised persons parking their respective vehicles within the compound.
It was emphasised by the defendant that the Crescent Court condominium
complex is close to the Brickfields business district and due to the
shortage of parking lots many office workers would park inside the complex
and walk to their respective offices in Brickfields. This episode was said
to be rampant and hence there was a need for the council to take drastic
steps to prevent such an abuse. It was emphasised that the plaintiff himself
must have had this in mind when he wrote the letter dated 24 May 2004 as
reproduced earlier.
[35] The defendant argued that the plaintiff's contention that the
defendant is bound by the procedures as set out in the Strata Titles Act
1985 in particular ss. 52, 53 and 53A in regard to the manner of the
recovery of maintenance monies owing to the defendant overlooked the fact
that s. 53 is worded in a discretionary manner with the operative word "may"
being inserted therein. It was submitted that the defendant and other
management corporations are not bound by the strict strictures of recovery
as set out in s. 53 of the Strata Titles Act 1985 because it may resort and
invoke to enforce its own house rules and resolutions passed at an AGM or
EGM.
[36] In regard to the plaintiff's alleged enjoyment of the use of the
parking bay 106, it was submitted by the defendant that the said enjoyment
must be read together with the house rules and/or directives of the
defendant. What use are these house rules, so posed the defendant, if they
could be ignored willy-nilly? It was pointed out that all the owners need do
would be to obtain a valid motor car sticker and they would have unlimited
and unrestricted usage of the parking bays allocated to them. It would be
mischievous for the plaintiff to suggest that the mere fact that he is the
owner of the said unit, then he should be allowed unlimited and unrestricted
usage of the parking bay 106 even though his motor car do not exhibit or
display a valid motor car sticker, so said the defendant. According to the
defendant, to sustain such an argument would open the literal flood gates
and chaos would be the order of the day. Surely, according to the defendant,
this court would not want to see chaos in the running of the management
corporations of condominiums and apartments in this country.
[37] A submission was made to the effect that the Strata Titles Act
1985 does not prohibit a management corporation from denying entry of motor
vehicles belonging to the parcel owners who are in arrears of maintenance
payments nor does the said Act say that it can do so. Ingeniously it was
submitted by the defendant that since the Strata Titles Act 1985 does not
prohibit it, it meant that the law permits it and the position was said to
be made clearer by the house rules which expressly permits the defendant to
do what it did. It was submitted by the defendant that the house rules are
expressly recognised by the Strata Titles Act 1985 and all the purchasers of
the stratified properties would have signed what in legal parlance would be
called the deed of mutual covenant which is nothing more than an agreement
inter se between the purchasers.
[38] By way of a rebuttal, the plaintiff submitted that the
defendant's categorical denial of having prevented the plaintiff's entry on
the various occasions as alluded to by the plaintiff constituted an attempt
at bare denial. It was emphasised that the plaintiff being the resident and
owner of the said unit and having displayed and affixed the correct motor
car sticker to his motor car should not be denied entry. It was further
submitted by the plaintiff that access to the Crescent Court condominium
complex ought to be unrestricted to the owners or tenants unless a court
order was obtained to say otherwise. It was the submissions of the plaintiff
that the existence of the deed of mutual covenant cannot change nor modify
the requirements as stipulated by the Strata Titles Act 1985 nor can the
said deed do away with the provisions of the said Act. At any rate, it was
pointed out that there was never a deed of mutual covenant signed by the
plaintiff and the defendant even failed to exhibit the said deed in its
affidavit.
Are Damages An Adequate Remedy?
[39] As a statutory body set up under the Strata Titles Act 1985, the
defendant must be bound wholly and completely by the terms of the said Act.
In this case, the defendant ought to have obeyed the words of the said Act
in enforcing the rights that were due to it.
[40] In regard to the maintenance charges that were due and payable,
it was argued by the plaintiff that there were discrepancies in regard to
the manner and method by which the alteration of the charges was done in
that it was done without due adherence to the share unit divisions as
required by the Strata Titles Act 1985. Furthermore, the defendant has
compounded the matter further by not adhering to the prescribed method of
the recovery of funds that were due to it. While admitting that the
defendant is a creature of the Strata Titles Act 1985, yet the defendant saw
it fit to collect monies in ways other than that prescribed by the Strata
Titles Act 1985. The defendant has failed to adhere to the provisions of the
said Act and, consequently, the "practical realities of the case" (to borrow
the words of Gopal Sri Ram JCA in Keet Gerald Francis Noel John (supra))
seemed to suggest that it would only be just and proper that an
interlocutory order in terms of encl. 3 ought to be given in favour of the
plaintiff.
Justice Of The Case
[41] The defendant submitted that the justice of the case lies in not
granting the injunction sought by the plaintiff. Assuming, for one moment,
so says the defendant, that if the plaintiff succeeds in his application
this would mean that he has a right of entry of his motor car into the
Crescent Court condominium complex compound even without a valid motor car
sticker. If this were to happen, so says the defendant, there would be
unfairness to the other law abiding parcel owners. It would create a sense
of uneasiness and other parcel owners would, in due course, become
recalcitrants - by not paying their maintenance charges and yet demanding
the right of entry when they drive their motor cars into the compound of the
Crescent Court condominium complex. Again, it was emphasised that all the
plaintiff need to do in order to have an unlimited and unrestricted use of
the parking bay 106 would be to pay up the maintenance charges and obtain a
valid motor car sticker. It was submitted that the plaintiff would not
suffer any injustice if relief is withheld because he would still have
access to his own unit save that he would have to leave his motor car
outside the defendant's compound. For these reasons, the defendant submitted
that this was a clear case to show that the defendant would suffer a greater
injustice by the grant of an injunction and hence the same should be
refused.
[42] Taking into account all those relevant matters as itemised in
the case of Keet Gerald Francis Noel John (supra), I must rule that the
justice of the case lies in favour of continuing the injunction as obtained
by the plaintiff on an ex parte basis on 2 November 2004 as reflected in the
order that has been extracted and as seen in encl. 9 for the following
reasons:
(1) that the plaintiff, as the registered proprietor of the said unit and
having legal title thereto as well as having a proprietary interest in the
car park bay 106 and bearing in mind the plaintiff's age, mobility and
medical conditions, certainly has an upperhand over that of the defendant
and the justice of the case would lie in favour of the plaintiff as opposed
to that of the defendant;
(2) that the defendant has no legal basis whatsoever to prevent the entry of
motor vehicles of the other owners of the parcel units who owe maintenance
fees and neither do the defendant has the legal basis to clamp the water
supplies of the other owners of the parcels who owe water charges and all
these would equally apply in favour of the plaintiff, and at any rate, the
plaintiff has always displayed a valid motor car sticker number 001 on the
windscreen of his motor car;
(3) that the defendant cannot base its decision to act unilaterally on the
basis of the house rules because the house rules are ultra vires the Strata
Titles Act 1985;
(4) that the harm caused to the plaintiff if the injunction is not granted
can go from physical and life threatening to extreme inconvenience bearing
in mind the age, mobility and medical conditions of the plaintiff;
(5) that there is no proven harm to the defendant other than being forced to
comply with the provisions of the Strata Titles Act 1985 particularly ss.
52, 53, 53A and 75 thereof should the injunction be granted in favour of the
plaintiff;
(6) that for the defendant damages is indeed an adequate remedy whereas for
the plaintiff damages can never be an adequate remedy because of the pain
and suffering which the plaintiff may suffer if he is forced to park his
motor car outside the compound of the Crescent Court condominium complex and
walk, after negotiating a difficult crossing of a rather busy road, to his
unit;
(7) that the balance of convenience lies in preserving the status quo of the
parties and that would be to allow the plaintiff's unrestricted access into
the compound of the Crescent Court condominium complex when he drives his
motor car with a valid motor car sticker number 001 and to allow him to
enjoy his unit without having to suffer the clamping of his water supply by
the defendant until the merits of this case is litigated; and
(8) that even if the plaintiff do not pay his water charges and do not
display and affix a valid motor car sticker to the windscreen of his motor
car, he should be allowed entry into the compound of the Crescent Court
condominium complex while driving his motor car and he too should be allowed
to park his motor car at the car park bay 106 that has been allocated to him
and over which he has a proprietary interest thereto and he too should be
given the right of access to his unit, being the holder of an indefeasible
title thereto, without fear that his water supply would be clamped by the
defendant and the remedy for the defendant would be by way of filing an
action for the recovery of the debt against the plaintiff in any court of
competent jurisdiction for whatever monies that are due to the defendant
from the plaintiff and it is for these reasons, on the balance of
convenience, that the status quo should be preserved in favour of the
plaintiff.
Did The Plaintiff Make A Full Disclosure?
[43] In advancing the application in encl. 3, the plaintiff disclosed
the following salient information. That the plaintiff did not hold the
position called the chairman of the defendant because that position was not
provided for in the Strata Titles Act 1985. Rather, that position was
created by one Dr. Murigiah Uthandy for his own convenience. The plaintiff
held the position of the chairman of the defendant's management committee
and that these two positions are distinct and varied, a point misunderstood
by the defendant.
[44] According to the plaintiff that the arrears claimed as due and
owing to the defendant were wrong because a valid set-off exists for the
benefit of the plaintiff as against the defendant. There were other monies
that have, to date, being paid which include the water charges. The
defendant too did not deny the existence of the set-off in its affidavits.
[45] That whilst the plaintiff may have written letters to the
security guard company in his capacity as the chairman of the defendant's
management committee, it has no bearing on this case because the plaintiff
has always displayed his valid motor car sticker number 001 on the
windscreen of his motor car. That the plaintiff's appointment as the
chairman of the defendant's management committee was not declared illegal or
null and void by Tee Ah Sing J, in suit no: S4-21-194-2003 between the
following parties:
Crescent Court Management Corporation ... Plaintiff
AND
Sahul Hamid and 11 Others ... Defendants
[46] Furthermore, during the plaintiff's tenure as chairman of the
defendant's management committee, the defendant had made a booking to
purchase and install new lifts and these issues have no relevance in
adjudicating encl. 3. All the information regarding the plaintiff's position
in the defendant's management committee and the actions taken therein have
nothing to do with the plaintiff's legal title to the said unit and
proprietary interest in the car park bay 106. This so called
"non-disclosures" cannot be construed as material non-disclosures bearing in
mind that a great deal of information has been supplied by the plaintiff to
the defendant. At any rate, any undisclosed information was not done
intentionally; rather, according to the plaintiff, it was undisclosed by
virtue of an oversight. According to the plaintiff, there was a notice of
intention to use the affidavit in encl. 2 and that notice can be seen in
encl. 8. In my judgment, every material fact has been presented by the
plaintiff and there were no suppression of material facts (Creative
Furnishing Sdn. Bhd. v. Wong Koi @ Wong Khoon Foh t/a Syarikat Sri Jaya
[1989] 1 CLJ 22 (Rep); [1989] 2 CLJ 93, 96, SC).
Collateral Issues
[47] Under this head, I shall consider the following five sub-issues.
(a) Chairman of the Crescent Court management corporation
The defendant admitted that it is a creature of the Strata Titles Act 1985
and the said Act does not provide for the position of the chairman for the
defendant. Yet, Dr. Murigiah Uthandy who affirmed the affidavit for the
defendant claimed to be chairman of the defendant. In sharp contrast, the
plaintiff claimed to have been and was the chairman of the defendant's
management committee and not of the defendant itself. The varied differences
of these two appointments are quite significant. The Strata Titles Act 1985
do not provide for the position of chairman of the defendant.
(b) Role of Messrs Iza Ng Yeoh & Kit
The issue of Messrs Iza Ng Yeoh & Kit's existence and information as to
their role was presented to this court in an obvious attempt of providing
full and frank disclosure. Their role in relation to the present suit is non
existent and unrelated. They are a valid legal firm in the eyes of the law
and duly registered with the Bar Council. The plaintiff's wife by the name
of Madam Izabella De Silva is not the partner of the law firm but merely a
consultant. According to the plaintiff, no legal costs was incurred in the
appointment of that law firm nor was anything paid to the said law firm.
(c) Set-off claim by the plaintiff
The defendant did not deny that there was a set-off. It must therefore be
deemed to be an admission (Ng Hee Thoong & Anor. v. Public Bank Berhad
[1995] 1 CLJ 609, CA).
(d) Decisions taken by the defendant
The decisions taken by the defendant were ultra vires the Strata Titles Act
1985. And these decisions relate to the following matters:
(i) the decision to prevent entry of motor vehicles belonging to the owners
of the parcel units and the tenants thereto;
(ii) the decision to restrict or clamp the water supplies to the parcel
units; and
(iii) the decision to give legal force to the house rules as opposed to
enacting them as by-laws within the purview of the Strata Titles Act 1985.
(e) Disconnection of water supply
The defendant's choice to make a bare denial of having clamped the water
supply despite the fact that pictures of the same water clamp have been
exhibited in exh. "JS1-2" of encl. 5 constitutes a bad attempt in denying
liability. Immediately after the defendant had issued the final notice as
reproduced earlier, the plaintiff filed the present action and whether or
not pursuant to a mistaken belief that monies were owing for the unpaid
water bills, the real threat facing the plaintiff would be the possibility
that the defendant may clamp the water supply again if the injunction was
not given.
Did The Plaintiff Come To Court With Clean Hands?
[48] The plaintiff said he did whereas the defendant disputed it. I
must rule that the plaintiff has come to court with clean hands. The
following explanations advanced by the plaintiff would suffice:
(1) That indeed some postage and mailing of cards and stickers were done
through one Helen Liew who has a business address at the Concorde Hotel. The
said Helen Liew was an owner of an apartment in the Crescent Court
condominium complex and she was also a management committee member at that
time. The arrangement with Helen Liew was done above board.
(2) CCTVs' were installed and they were contributed by one of the parcel
owners. These CCTVs' were installed at some vantage points. One was
installed to protect the contributing owner's vehicle. Another was installed
focussing on the security guards. Yet another was installed in the
management office.
(3) Certain amounts were paid to MS Elevators Engineering Sdn Bhd for new
lifts and this fact was known to the defendant.
(4) The plaintiff denied owing the defendant the sum of RM1,414.22 as
overdue maintenance charges.
Conclusion
In the interest of justice and on the balance of convenience, it would be
ideal to maintain the status quo of the parties pending the determination of
the other issues at hand by allowing the injunction to continue. For all the
reasons as adumbrated above, I gave an order in terms of encl. 3 prayers
1(a), 1(b), 1(c), 1(d) and (3) thereto.
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