Case:

Brief Facts:

• The Respondent is the Management Corporation of an apartment complex, Mar Vista Resort [“Mar Vista MC”].
  
  
• The Appellant is the local authority of the area which is known as Pesuruhjaya Bangunan Kawasan Pentadbiran Majlis Bandaraya Pulau Pinang [“COB”].
  
  
• On 01.06.2022, Mar Vista MC wrote to COB, requesting a postponement of the Annual General Meeting [“AGM”] because a fight had broken out at the 8^th AGM on 22.5.2022.
  
  
• COB decided that it cannot allow for such postponement because it is not empowered to do so under the Strata Management Act 2013 [“SMA 2013”].
  
  
• Then on 22.06.2022, Mar Vista MC wrote to COB again requesting for the same postponement, citing safety reasons.
  
  
• COB once again decided that they are not empowered to allow for postponement under SMA 2013.
  
  
• Mar Vista MC, dissatisfied with both decisions challenged their decision at the High Court.

THE DECISION OF THE HIGH COURT (HC)

• The HC went through section 1(7), section 4(1), and section 4(3) of SMA 2013 and concluded that ultimately, COB (i) is the lawful delegate of the State, (ii) is in charge of the administration of the Act, and (iii) has the power to suspend the operation of any provision under the Act.
  
  
• The power to suspend any operation here would include suspension of holding the AGM.
  
  
• Therefore, the HC decided that both decisions made by COB were wrong in law and void.
  
  
• COB, dissatisfied with the judgment then appealed to the Court of Appeal.

THE DECISION OF THE COURT OF APPEAL (COA)

• The COA held that under section 1(7) of SMA 2013, the power to suspend the operation of SMA 2013 was given to the State Authority and not COB.
  
  
• Here, although the State Authority can delegate its power to COB to administer the property, such power is limited and does not extend to the suspension of the operation of SMA 2013.
  
  
• The COA found that an AGM needs to be held because that is when Mar Vista MC is able to discuss the management of accounts, namely, the maintenance charges and sinking funds. Moreover, the AGM is also when any management committee will be elected.
  
  
• The AGM is important to ensure the property is managed properly.
  
  
• The COA decided that the HC was mistaken to decide that COB’s decisions were unlawful and void. Thus, the COB is not empowered under SMA 2013 to order the postponement of the AGM.