Court of Appeal’s decision allowing different rates to be imposed for maintenance and sinking fund charges for parcels used for different purposes - UPDATE

In Aikbee Timbers Sdn Bhd & Anor v Yii Sing Chiu & Anor And Another Appeal [2024] 2 MLRA 196, the Court of Appeal in a significant decision held that under the Strata Management Act 2013, a property developer, during the preliminary management period, and a management corporation, after the preliminary management period, may impose different rates for maintenance charges and sinking fund contributions in a stratified mixed development that comprises parcels serving significantly different purposes.
The application by a parcel owner in the subject development for leave to appeal against the Court of Appeal’s decision was dismissed by the Federal Court on 19 March 2024. Thus the decision of the Court of Appeal is final.
Our case note on the Court of Appeal’s decision can be read here.
Alert by Lim Chin Lun (Associate) of the Construction Litigation, Arbitration and Adjudication Practice of Skrine.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact