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- Judge Datuk Dean Wayne Daly also ruled that The Wharf’s joint management body (JMB) which filed the suit against developer Unique Harvests Sdn Bhd, a member of the Interhill Group, in Miri does not have locus standi (legal standing) to initiate the claim as it was only formed in 2023.
KUALA LUMPUR (Jan 9): The Kuching High Court, in a landmark decision, ruled that the Sarawak Strata Management Ordinance 2019 (SMO), which came into force on March 1, 2022, cannot be applied retrospectively.
Judge Datuk Dean Wayne Daly also ruled that The Wharf’s joint management body (JMB) which filed the suit against developer Unique Harvests Sdn Bhd, a member of the Interhill Group, in Miri does not have locus standi (legal standing) to initiate the claim as it was only formed in 2023.
Hence, the developer is not legally required to pay the maintenance charges for the unsold parcels or contribute to the sinking fund for any period preceding the law’s commencement on March 1, 2022.
The Wharf is a 187-residential-suite development located at the Miri Waterfront Commercial Centre.
Unique Harvests’ counsel Lai Chee Hoe when contacted by The Edge confirmed Daly’s decision.
He said Daly’s ruling sets a vital precedent for the Sarawak property sector, specifically regarding the financial obligations of developers during the transition into a new strata management framework.
“It confirms that statutory duties created under the SMO 2019 are bound by the timeline of its enforcement, protecting stakeholders from backdated claims originating before the legislative change,” he said, adding that developers and management bodies can obtain further details on the state's strata regulations via the Sarawak Ministry of Public Health, Housing and Local Government.
The Wharf JMB filed the suit against Unique Harvests on Dec 5, 2024, seeking maintenance charges and sinking fund contributions dating back to the period before the SMO 2019 came into force.
The JMB was formed on Feb 23, 2023 and it was seeking maintenance charges of RM2.411 million and sinking funds of RM307,542.55 for periods between 2016 and Feb 28, 2022.
Daly allowed the developer’s application for a short hearing under Order 14A of the Rules of Court 2012, to decide on two legal issues, namely:
The retrospective effect on whether the SMO 2019 could be applied to claims arising before its effective date of March 1, 2022, and;
Whether the JMB has the legal standing to initiate claims for arrears accumulated prior to its own establishment and the enforcement of the SMO 2019.
Daly also ordered The Wharf JMB to pay RM5,000 costs.
Lai, along with Deyvinah Ganesalingam, Allan Lao, Lidwina Kiew Chin Chin and Brenda Wong Yun Ru of Messrs David Allan Sagah & Teng Advocates appeared for Unique Harvests.
The Wharf JMB was represented by Soo Tong Jack of Messrs Suhaili Bong.
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