WAWASAN RAYA (M) SDN BHD & ANOR v. MARC SERVICE RESIDENCE MANAGEMENT CORPORATION

[2025] 4 MLRA 1

WAWASAN RAYA (M) SDN BHD & ANOR v. MARC SERVICE RESIDENCE MANAGEMENT CORPORATION
Court of Appeal, Putrajaya
See Mee Chun, Lim Chong Fong, Wong Kian Kheong JJCA
[Civil Appeal No: W-02(NCVC)(W)-719-04-2023]
9 April 2025

JUDGMENT

Wong Kian Kheong JCA:

A. Two Novel Questions

[1] This judgment raises two novel issues, namely-

(1) whether the "management corporation" (MC) [as defined in s 2 of the Strata Management Act 2013 (SMA)] of a "development area" (as understood in s 2 SMA) can prohibit "Short Term Rental' (STR) of "parcels" (within the meaning of s 2 SMA) in the development area; and

(2) can a court on its own motion strike out a counterclaim by a defendant under O 18 r 19(1) of the Rules of Court 2012 (RC). This question also concerns the application of the two rules of natural justice.

[2] I had forwarded a draft of this judgment (Draft) to See Mee Chun and Lim Chong Fong JJCA. Both my learned sister and brother had expressed their agreement with the Draft.

B. Background

[3] We shall refer to the parties as they were in the High Court.

[4] The plaintiff (Plaintiff) is the MC of a development area known as "MARC Service Residence" (Apartment).

[5] The 1st defendant company (1st Defendant) is the registered proprietor of three parcels in the Apartment. The 1st Defendant also rented five parcels in the Apartment.

[6] On 26 June 2019, the Sixth Annual General Meeting of the Plaintiff was held (Plaintiff's 6th AGM). At the Plaintiff's 6th AGM, there was a dispute on what was passed with regard to Agenda no 8, resolution no 3. (Resolution No 3).

C. Proceedings In The High Court

[7] The Plaintiff filed a suit in the High Court (This Suit) against 202 defendants (Defendants) who own parcels (Parcels) in the Apartment (Parcel Owners).

[8] In This Suit, the Plaintiff's Statement of Claim prayed for the following relief, among others:

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