PUTRAJAYA (Jan 22): A three-member Court of Appeal bench allowed an appeal by the K Residence joint management body (JMB) in the Kuala Lumpur City Centre, to set aside a High Court order obtained by the property developer, KL Landmark Sdn Bhd, and seven others for them to be allowed to vote.

The appellate bench also ordered the matter to be reverted to the High Court to determine the arrears and not to summarily allow the originating summons by the developer and seven others.

This follows a KL High Court decision in February last year that ruled to annul three of the JMB’s annual general meetings (AGM) as the developer KL Landmark and others were not allowed to vote (due to arrears) and asked them to reconvene the AGMs.

The bench led by Judge Datuk M Nantha Balan said the High Court decision did not accurately reflect the strata regime since it disregarded the proviso of 21(2), Second Schedule of the Strata Management Act 2013, 2013 where the right to vote is also subject to the proviso “other money due and payable” to the JMB in respect of the owner’s parcel which must be considered together.

The Second Schedule 21(2) stipulates 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 money due and payable to the management corporation in respect of his parcel are in arrears.

In the decision, according to JMB’s counsel, Lai Chee Hoe, the appellate bench that also consisted of Datuk Dr Lim Chong Fong and Datuk Ahmad Kamal Md Shahid unanimously held that the developer is not allowed to take advantage of its own wrong when there are arrears of charges (that it owed) and ordered the issue to be determined during the High Court trial.

The case followed a suit filed by the developer and its associated parties against the JMB in the High Court, seeking among other things, declarations that the past AGMs ought to be nullified on the main ground that they are not allowed to vote.

On Feb 7, 2024, the High Court ruled that all the past AGMs are null and void since the arrears are validly disputed by the developer and others, and they ought to be given the right to vote.

The High Court further directed the JMB to reconvene the AGM. Following this, the JMB appealed.

Lai appeared with Angeline Ang, Ooi Xin Yi and Low Yen Hau while Tan Sri Muhammad Shafee Abdullah and Aimee Liew appeared for KL Landmark and seven others.