Federal Court strikes out appeal bid for Management Corporation to impose Multiple rates
B-02-NCVC-W-2002-11/2023
Federal Court
November 11, 2025
Case Highlights
- In a unanimous decision on Nov 25, the Federal Court bench, led by Federal Court judge Datuk Rhodzariah Bujang and flanked by Datuk Seri Vazeer Alam Mydin Meera and Datuk Mohd Nazlan Mohd Ghazali, had quashed PD1’s bid to appeal against the High Court and Court of Appeal (COA) decision which had not allowed PD1’s management corporation to impose the different rates of maintenance charges.
- In dismissing the application, the Federal Court bench held that the issues raised by PD1’s management corporation were neither novel nor of public importance such that they would warrant further scrutiny; thus, the COA’s decision stood.
- In the COA decision on July 2 this year, the appellate court held that PD1 is a purely commercial development. The management corporation’s attempt to categorise offices, shops, and carparks into separate usage classes to justify different rates lacked factual or legal foundation.
- The COA also held that the management corporation’s basis to allocate cost was found to be “hypothetical”, “arbitrary”, and unsupported by actual, historical maintenance expenditure.
- On Oct 30, 2023, then-High Court judge Datuk Wan Ahmad Farid Wan Salleh (now the Chief Justice) did not allow for PD1’s management corporation to impose different rates of maintenance charges. The court held that PD1 cannot warrant the issuance of an order for the reallocation of the share units for the carpark parcels. The High Court also held that the appropriate remedy must be by way of judicial review instead of a civil suit.