JMB has no power to fix different rates of maintenance charges for different types of parcels: *Update*

On 14 October 2019, the Court of Appeal in Muhamad Nazri Muhamad v JMB Menara Rajawali and Denflow Sdn Bhd [2019] 10 CLJ 547, in a landmark decision, held that the joint management body of a mixed commercial development known as Menara Rajawali has no power to set different rates of maintenance charges for different types of parcels comprised in a mixed stratified development. We previously published a summary of the Court of Appeal’s decision which can be accessed here.
 
On 21 May 2020, the Federal Court dismissed an application by JMB Menara Rajawali and Denflow Sdn Bhd for leave to appeal to the Federal Court against the Court of Appeal’s decision. In light of this, the Court of Appeal’s decision remains binding authority on this subject matter and the legal position remains that a joint management body established pursuant to the Strata Management Act 2013 is required to determine and fix only a single rate of maintenance charges for all types of parcels in a development.
 
With the refusal by the Federal Court to grant leave to appeal against the decision of the Court of Appeal, there is now more certainty for joint management bodies, management corporations and owners of stratified mixed developments in that the maintenance charges payable must be based on one rate and in proportion to the respective share units of each property.
 
If you have any queries, please contact our Mr. Ashok Kumar (Partner) at amr@skrine.com or Ms. Siew Suet Mey (Senior Associate) at siew.suet.mey@skrine.com.