The problem arose after the management committee of the Royal Strand & Lovell apartment buildings did not take steps to continue as plaintiffs after replacing the JMB.
The suit was filed against Country Garden Danga Bay Sdn Bhd in 2023, and alleges that there was shoddy workmanship, use of substandard materials and a range of unrectified defects in two luxury apartment buildings in Danga Bay here.
The apartment owners said the developer had marketed the property as a high-end, luxurious residential project. However, they claimed some were of sub-standard and poor quality. The owners seek an order compelling the developer to appoint a professional independent engineer to assess the damage and repair all defects.
The developer opposed the application by the condominium owners to be plaintiffs in the suit, and contended that the management committee was the rightful entity to decide on the continuation of the action.
However, the three owners from Singapore – Soh Hup Ling, Ho Chee Kian and Jiang Fang – said they decided to step in as plaintiffs as they alleged that the MC is now controlled by members who are directly or indirectly linked to the developer.
“The MC chairman was the director of Country Garden at the time of the annual meeting, and the members of the committee comprised staff of the developer,” they said, contending there was a conflict of interest if the MC continued to be the plaintiffs.
In a brief oral judgment on Friday, Judicial Commissioner Budiman Lutfi Mohamed held that there was “a real risk of a conflict of interest” in view of allegations that the MC is controlled by individuals linked to the defendant who may not act in the best interests of the owners. “And this cannot be the outcome of justice,” he said.
He said the the court should not be mechanical in its judgement and should look at the facts of the case in entirety and decide in the interest of justice.
“There is real risk of a conflict of interest as there are allegations that the MC is controlled by individuals linked to the defendant who may not act in the best interest. And this cannot be the outcome of justice. Procedural objections should not override substantial justice,” he said .
NG Vinod and Lim Wilson represented the owners while Leonard Yeo and Chen Mei Yan appeared for the developers.
Country Garden Danga Bay is part of the China-owned Country Garden group which is developing the Forest City project on four reclaimed islands in the Johor Straits. The price of apartments in the Royal Strand condominium project ranges from RM345,000 to RM3 million each, according to property websites.