06/02/2026
๐๏ธ ๐๐๐ง๐๐ฆ๐๐ซ๐ค ๐๐ฎ๐ฅ๐ข๐ง๐ : ๐๐จ "๐ฌ๐๐ฉ๐๐ซ๐๐ญ๐" ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐ฎ๐ซ๐ข๐ง๐ ๐๐๐
The Court of Appeal recently delivered a definitive judgment in the Gurney Paragon case, clarifying the "One Development, One Management" principle under the Strata Management Act 2013 (SMA).
๐๐ก๐ ๐๐ข๐ฌ๐ฉ๐ฎ๐ญ๐:
A developer and commercial owners established a separate management regime for the commercial component of a mixed development, leaving the Joint Management Body (JMB) to manage only the residential towers. The High Court initially allowed this, citing "fairness."
๐๐ก๐ ๐๐จ๐ฎ๐ซ๐ญ ๐จ๐ ๐๐ฉ๐ฉ๐๐๐ฅ'๐ฌ ๐๐๐๐ข๐ฌ๐ข๐จ๐ง:
The Court unanimously set aside the High Court's ruling, establishing several critical precedents:
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No "Contracting Out": Parties cannot use Sale and Purchase Agreements (SPAs) or AGM resolutions to bypass the law. The SMA mandates a single JMB and one set of accounts for a development area.
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Ultra Vires Actions: Any resolution to separate management or exclude the JMB from the commercial component is null and void.
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COB Limits: The Commissioner of Buildings (COB) has no power to validate a management structure that the law expressly prohibits.
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Retrospective Liability: Commercial owners remain statutorily liable for charges. The JMB must now regularise accounts by holding a fresh AGM to determine a "just and reasonable" ๐๐ข๐๐๐๐ซ๐๐ง๐ญ ๐ซ๐๐ญ๐ ๐จ๐ ๐๐ก๐๐ซ๐ ๐๐ฌ retrospectively.
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Common Property Control: All common property (including commercial facades and car parks) must be surrendered to the JMB's control.
๐๐ก๐ ๐๐๐ค๐๐๐ฐ๐๐ฒ:
This ruling is a major win for JMBs/MCs nationwide, reinforcing that statutory duties take precedence over private contracts. Mixed-use developments must be managed as a single entity during the JMB period, regardless of developer arrangements.
Counsel for JMB: Lai Chee Hoe , Deyvinah and Low Yen Hau (Messrs Chee Hoe & Associates)
Counsel for Respondents: Ashok Kumar and Lim Chin Lun (Messrs Skrine)