What Happens After the Strata Management Tribunal Gives an Award?

In the previous articles, we discussed what the Strata Management Tribunal is and the types of claims that may be filed at the Tribunal.

However, one important question often arises: what happens after the Tribunal gives an award?

Many parties assume that once the Tribunal gives an award, the issue is automatically resolved. In reality, that is not always the case.

A Tribunal award is a decision with legal effect. However, the successful party must still understand what the award directs, the period for compliance, the follow-up steps required and the actions that may be considered if the losing party does not comply with the award.

This article provides a simple explanation of what happens after the Strata Management Tribunal gives an award and why follow-up action must be managed properly.

1. What Is a Tribunal Award?

A Tribunal award is the decision given by the Tribunal after hearing the claim, response, documents and evidence of the parties.

An award may contain specific directions depending on the type of claim and the Tribunal’s jurisdiction.

For example, an award may direct a party to:

a. pay a certain sum;

b. comply with the by-laws;

c. stop doing a certain act;

d. do a certain act;

e. repair damage;

f. provide certain documents;

g. allow certain access; or

h. comply with any other direction within the Tribunal’s jurisdiction.

In claims for arrears of maintenance charges, the award commonly directs the owner to pay the outstanding amount that has been proven.

However, the actual contents of the award must be read carefully because each award depends on the claim, facts and remedies granted by the Tribunal.

2. Is a Tribunal Award Binding on the Parties?

Yes, a Tribunal award is binding on the parties involved in the proceedings.

This means that the party directed by the Tribunal must comply with the award.

If the Tribunal orders payment, payment must be made according to the award. If the Tribunal directs an act to be done or stopped, the party directed must comply with that direction.

A Tribunal award should not be taken lightly merely because Tribunal proceedings are generally simpler than court proceedings.

Although the Tribunal is not an ordinary court, a Tribunal award still has legal effect.

3. Effect of an Award Under Section 120 of the Strata Management Act 2013

Section 120 of the Strata Management Act 2013 is an important provision concerning the effect of a Tribunal award.

In general, this section provides that an award made by the Tribunal is final and binding on all parties to the proceedings.

This means that the parties involved in the Tribunal claim must comply with the award given.

Section 120 is also important because it shows that a Tribunal award is not merely a recommendation or administrative opinion. It is a decision with legal effect.

Therefore, if the Tribunal directs a party to pay a certain amount, do a certain act, stop doing a certain act or comply with a particular direction, that party must take the award seriously.

Failure to comply with the award may lead to follow-up action or enforcement according to the applicable law and procedure.

4. Will Money Be Received Automatically After an Award?

Not necessarily.

If the Tribunal gives a monetary award, the losing party should pay the amount ordered.

However, in practice, there are situations where the losing party does not pay voluntarily.

This means that the successful party may need to take follow-up steps to recover the amount.

For a management body, obtaining an award is only one stage. The next stage is to ensure that the award is complied with or to consider further action if the losing party refuses to comply.

5. What Should Be Done After Receiving an Award?

After receiving an award, the successful party should read the award carefully.

Matters to be checked include:

a. the party directed to comply with the award;

b. the amount payable, if any;

c. the period for payment or compliance;

d. the action directed by the Tribunal;

e. the date of the award;

f. any specific conditions in the award;

g. whether the award requires further action; and

h. whether the losing party has complied with the award.

The successful party should also keep a proper copy of the award because this document is important for follow-up action or enforcement.

6. What Should Be Done If the Losing Party Complies With the Award?

If the losing party complies with the award, compliance should be clearly recorded.

For example, if the award involves payment of arrears, the management body should:

a. issue a payment receipt;

b. update the statement of account;

c. record the payment date;

d. record the amount paid;

e. keep proof of payment; and

f. ensure that the owner’s account is updated.

If the award involves a non-monetary direction, such as repairing damage or stopping a disturbance, the management body or relevant party should record whether the direction has been complied with.

Compliance records are important to prevent new disputes from arising later.

7. What Happens If the Losing Party Does Not Comply With the Award?

If the losing party does not comply with the award, the successful party should consider follow-up action.

The appropriate step depends on the type of award and what has not been complied with.

If the award involves payment of money, follow-up action may involve steps to enforce the amount.

If the award involves a direction to do or stop doing something, follow-up action may require an application or other suitable steps depending on the circumstances.

The important point is that the successful party should not simply leave the award unattended. An award that is not enforced may cause the problem to continue, especially in cases involving arrears of maintenance charges.

8. Can a Tribunal Award Be Enforced?

Generally, a Tribunal award may be enforced according to the applicable law and procedure.

Under section 120 of the Strata Management Act 2013, a Tribunal award is final and binding on the parties to the proceedings. Therefore, the party directed by the Tribunal must comply with the award given.

If the award is not complied with, the successful party may consider follow-up steps for enforcement. However, the method of enforcement depends on the type of award, whether the award involves payment of money, a direction to do something, a direction to stop doing something or another form of order.

In some situations, a Tribunal award may need to be registered or brought before the court for enforcement purposes, subject to the relevant law and procedure.

Therefore, for this introductory article, the important point to understand is that a Tribunal award cannot be ignored. If the losing party does not comply with the award, the successful party does not necessarily need to file a fresh claim from the beginning, but should take the appropriate enforcement steps based on the award.

9. Can a Tribunal Award Be Appealed?

An important point is that a Tribunal award does not go through an ordinary appeal process in the same way as some court decisions.

If a party is dissatisfied with a Tribunal award, the scope to challenge the award is limited.

Generally, a challenge against a Tribunal decision must be made by way of judicial review proceedings in the High Court, subject to the applicable legal grounds and procedure.

Judicial review is not a full appeal on the facts or merits of the case. It usually focuses on matters such as jurisdiction, procedural non-compliance, serious error of law, unreasonableness or breach of natural justice.

For this reason, parties should take Tribunal proceedings seriously from the beginning. They should not wait until after the award is given before trying to find grounds to challenge the decision.

10. Why Is Compliance With an Award Important in Strata Management?

Compliance with an award is important because the Tribunal is one of the official channels for resolving strata disputes.

If awards are not complied with, the purpose of the Tribunal as a dispute resolution mechanism is affected.

In the context of a management body, failure to enforce an arrears award may affect the finances of the building. Other owners who pay their charges properly may feel that no action is being taken against defaulting owners.

In the context of an owner, failure to comply with an award may result in further action, additional costs and a longer dispute.

Therefore, a Tribunal award should be treated as a serious decision requiring compliance.

11. What Should a JMB or MC Do After Obtaining an Arrears Award?

If a JMB or MC obtains an award for arrears of maintenance charges or sinking fund contributions, several practical steps may be considered.

These include:

a. keeping a proper copy of the award;

b. updating the owner’s account records;

c. issuing a follow-up letter to the owner;

d. stating the amount to be paid;

e. stating the period for compliance with the award;

f. recording all communications;

g. checking whether payment is made;

h. considering further action if payment is not made; and

i. obtaining advice before commencing enforcement.

The management body should also ensure that follow-up action is taken consistently and based on documents.

12. What Should an Owner Do If an Award Is Given Against Them?

If an award is given against an owner, the owner should not ignore it.

Better steps include:

a. reading the award carefully;

b. understanding what the Tribunal has directed;

c. checking the amount payable, if any;

d. checking the period for compliance;

e. seeking clarification if there is confusion;

f. making payment or complying with the direction within the required period;

g. keeping proof of payment or compliance; and

h. obtaining advice immediately if the owner intends to challenge the award.

Ignoring an award may make the situation more serious.

If the owner genuinely disagrees with the award, action must be taken through the correct legal channel and within the appropriate period.

13. Why Are Follow-Up Documents Important?

Follow-up documents are very important after an award is given.

Documents to be kept include:

a. a copy of the Tribunal award;

b. follow-up letters;

c. proof of service of letters;

d. updated statements of account;

e. payment receipts;

f. communication records;

g. compliance records;

h. minutes of meetings relating to follow-up action; and

i. enforcement documents, if any.

These documents are important if there is a dispute over whether the award has been complied with or if further action needs to be taken.

In strata management, complete records help avoid confusion and strengthen the position of the party taking action.

14. Conclusion

A Strata Management Tribunal award is an important decision with legal effect.

Under section 120 of the Strata Management Act 2013, a Tribunal award is final and binding on the parties to the proceedings. Therefore, a Tribunal award should not be treated lightly or viewed as a mere administrative decision.

However, obtaining an award does not necessarily mean that the dispute is automatically resolved. The successful party must still ensure that the award is complied with. If it is not complied with, follow-up action or enforcement may need to be considered.

For JMBs and MCs, arrears awards must be managed carefully because they are directly connected to the building’s finances and the interests of other owners.

For owners, a Tribunal award should not be ignored. If a party is dissatisfied, the proper channel must be used, and the scope for challenge is generally limited to judicial review proceedings in the High Court, subject to the applicable grounds and procedure.

In strata management, Tribunal proceedings do not end merely with an award. The steps after the award are just as important.

Prepared by:
Khairul Shahrizan bin Hamizi
Advocate and Solicitor
High Court of Malaya

Brief Note

This article is prepared for general information only and should not be treated as specific legal advice. Each issue concerning a Strata Management Tribunal award, compliance, enforcement or judicial review must be assessed based on its own facts, documents, award, Tribunal procedure, court procedure and applicable laws.