What Is the Strata Management Tribunal?

In a strata development, disputes may arise between owners, occupants, the Joint Management Body, the Management Corporation, developers, committee members or other parties involved in strata management.

These disputes may involve various issues, such as arrears of maintenance charges, use of common property, by-laws, renovation works, decisions of the management body, access to facilities, or the responsibilities of certain parties in a strata development.

Not every strata dispute needs to be brought straight to court.

In certain situations, a dispute may be brought to the Strata Management Tribunal.

The Strata Management Tribunal is a specialised forum established to hear and decide certain types of disputes relating to strata management. It provides a more specific, accessible and practical channel for certain issues in strata living.

This article provides a simple explanation of what the Strata Management Tribunal is, its jurisdiction, the applicable procedure, when it may be considered and why owners and management bodies should understand its role.

1. Why Was the Strata Management Tribunal Established?

A strata development involves many parties who share a building, common property, shared facilities and financial responsibilities.

When many parties share one development, disputes can easily arise.

For example, an owner may disagree with charges imposed. A management body may want to recover arrears. An occupant may dispute the use of shared facilities. Another owner may complain about renovation works, leakage, noise or breach of by-laws.

If every dispute had to be brought to court, the process could become longer, more costly and more complicated.

For this reason, the Strata Management Tribunal was established as a specialised forum to hear certain disputes relating to strata management.

2. What Is the Role of the Strata Management Tribunal?

The main role of the Strata Management Tribunal is to hear and decide claims that fall within its jurisdiction.

The Tribunal is not the building management body.

The Tribunal is also not a replacement for the Joint Management Body, Management Corporation, committee members or property manager.

The Tribunal is a dispute resolution forum.

In simple terms, the Tribunal does not manage the building on a daily basis. It hears certain disputes and makes decisions based on the claim, response, documents and evidence presented by the parties.

Therefore, a party bringing a claim must prepare the case properly. The Tribunal should not be treated as a place for general complaints without clear documents, facts and claims.

3. Jurisdiction of the Tribunal Under the Fourth Schedule to the Strata Management Act 2013

The jurisdiction of the Strata Management Tribunal is not unlimited.

The Tribunal may only hear and decide claims that fall within its jurisdiction. In general, the types of claims that may be brought before the Tribunal are governed by the Strata Management Act 2013, particularly the claims set out in the Fourth Schedule to the Act.

This means that although a dispute may arise in a strata development, it does not automatically mean that the dispute can be brought before the Tribunal. The dispute must fall within the types of claims allowed by law.

Issues commonly associated with the Tribunal’s jurisdiction include claims for maintenance charges, sinking fund contributions, disputes relating to common property, by-laws, meetings, decisions of the management body and other matters that fall within the Fourth Schedule.

Therefore, before a claim is filed, the party intending to claim should first consider whether the claim truly falls within the Tribunal’s jurisdiction.

If the claim falls outside the Tribunal’s jurisdiction, the claimant may need to consider another forum, including the court, depending on the nature of the claim and the remedy required.

4. Tribunal Procedure Under the Strata Management (Strata Management Tribunal) Regulations 2015

Apart from the Strata Management Act 2013, proceedings before the Tribunal are also governed by the Strata Management (Strata Management Tribunal) Regulations 2015.

These Regulations provide the procedure relating to the filing of claims, documents, responses, hearings, awards and other procedural matters connected to Tribunal proceedings.

This is important because the Tribunal is not merely a place for general complaints. A party intending to file a claim must do so in accordance with the applicable forms, procedure and regulatory requirements.

Similarly, a party who receives a claim must respond according to the proper procedure and attend the hearing fixed by the Tribunal.

Although the Tribunal is designed to be a simpler forum compared to the courts, procedural compliance remains important. Failure to prepare documents, failure to attend, failure to respond to the claim or failure to comply with the Tribunal’s directions may affect a party’s position.

5. What Types of Issues Are Usually Brought to the Tribunal?

Issues brought to the Tribunal usually relate to strata management and the responsibilities of parties in a strata development.

Issues commonly associated with the Tribunal include:

a. claims for arrears of maintenance charges;

b. claims for arrears of sinking fund contributions;

c. disputes relating to amounts imposed;

d. disputes relating to the use of common property;

e. disputes relating to by-laws;

f. disputes relating to actions or decisions of the management body;

g. disputes relating to renovation works;

h. disputes relating to access to facilities; and

i. other disputes within the Tribunal’s jurisdiction.

However, not every strata issue can be brought to the Tribunal. Each claim must be considered based on the nature of the claim, parties involved, amount claimed, remedy sought and the Tribunal’s jurisdiction.

6. Who Can File a Claim at the Tribunal?

The parties who may file a claim at the Tribunal depend on the type of claim and the applicable legal provisions.

In practice, claims may involve parties such as parcel owners, purchasers, developers, the Joint Management Body, the Management Corporation or other parties connected to strata management.

For example, a management body may file a claim against an owner who has arrears of maintenance charges.

On the other hand, an owner may file a claim if the owner disputes certain actions taken by the management body.

However, a party intending to file a claim must ensure that it has the proper standing to bring the claim and that the claim falls within the Tribunal’s jurisdiction.

7. Is the Tribunal the Same as a Court?

The Tribunal is not an ordinary court, but it has the function of hearing and deciding certain claims.

Its procedure is usually simpler compared to court proceedings. However, this does not mean that a Tribunal claim can be prepared casually.

The claimant must still prepare sufficient documents, facts, grounds and evidence.

The respondent must also provide a clear response and support its position with relevant documents.

Although the Tribunal process may be easier to understand, a Tribunal decision can still have legal consequences for the parties involved.

8. What Is a Tribunal Award?

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

An award may direct a party to pay a certain amount, do a certain act, stop doing a certain act or comply with certain directions, depending on the Tribunal’s jurisdiction and the remedies allowed.

In the context of arrears of maintenance charges, the Tribunal may give an award directing an owner to pay a specific amount of arrears if the claim is proven.

However, obtaining an award does not necessarily mean that the money will be received automatically.

If the losing party does not comply with the award, further action may need to be taken according to the applicable procedure.

9. Can a Tribunal Decision Be Appealed?

An important point to understand is that a decision of the Strata Management Tribunal 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 or decision, that party does not have an ordinary right of appeal against the merits of the Tribunal’s decision.

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.

This means that a dissatisfied party cannot simply file an appeal merely because it disagrees with the Tribunal’s decision. 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. Documents, facts, responses, evidence and attendance at the hearing should be properly prepared because the scope to challenge a Tribunal decision after an award is given is limited.

10. Why Are Documents Important in Tribunal Claims?

Documents are very important in Tribunal claims.

The Tribunal makes its decision based on the claim, response, documents and evidence presented by the parties.

In a claim for arrears of maintenance charges, important documents usually include:

a. statements of account;

b. invoices or bills;

c. payment receipts;

d. arrears records;

e. demand notices;

f. reminder letters;

g. minutes of meetings;

h. meeting decisions relating to the rate of charges;

i. by-laws;

j. records of service of notices; and

k. communication records.

If documents are incomplete, the claim may be weak. The claimant may have difficulty proving the amount claimed. The respondent may also have difficulty proving payment or objections.

In Tribunal claims, clear and organised documents are very helpful.

11. What Should Be Considered Before Filing a Claim?

Before filing a claim at the Tribunal, the party intending to claim should consider several matters.

These include:

a. whether the claim falls within the Tribunal’s jurisdiction;

b. the amount claimed;

c. the party to be named in the claim;

d. supporting documents;

e. notices that have been given;

f. the period of arrears or dispute;

g. the remedy sought;

h. the likelihood that the other party will dispute the claim;

i. cost and time involved; and

j. further action if the award is not complied with.

Filing a claim without proper preparation may cause the case to become weak or delayed.

Therefore, although the Tribunal is intended to provide a simpler process, case preparation remains important.

12. What Should an Owner Do If a Tribunal Claim Is Received?

If an owner receives a Tribunal claim, the owner should not ignore it.

Better steps include:

a. reading the claim carefully;

b. checking the amount claimed;

c. checking the statement of account;

d. checking payment receipts;

e. obtaining relevant documents;

f. preparing a response;

g. attending the hearing;

h. bringing supporting documents; and

i. obtaining advice where necessary.

If the owner does not attend or respond to the claim, the Tribunal may make a decision based on the materials before it.

Therefore, any Tribunal claim should be taken seriously.

13. Tribunal, COB and Court: What Is the Difference?

In strata management, many parties are confused between the Tribunal, the Commissioner of Buildings and the court.

The Commissioner of Buildings usually has certain administrative and supervisory functions in strata management.

The Tribunal is a forum that hears and decides certain claims within its jurisdiction.

The court has wider jurisdiction and may hear certain claims or applications that may not be suitable or may not be brought before the Tribunal.

Therefore, not every complaint should be brought to the COB. Not every dispute should be brought to the Tribunal. Not every case should be brought straight to court.

The correct forum depends on the type of issue, remedy required, parties involved and resolution strategy.

14. Conclusion

The Strata Management Tribunal is an important forum for resolving certain disputes relating to strata management.

It provides a more specialised channel for issues such as arrears of maintenance charges, disputes relating to common property, by-laws, actions of the management body and other strata issues within its jurisdiction.

However, the Tribunal’s jurisdiction is governed by the Strata Management Act 2013, particularly the Fourth Schedule. Tribunal proceedings must also comply with the Strata Management (Strata Management Tribunal) Regulations 2015.

The Tribunal is also not a place for unstructured general complaints. A party intending to claim must prepare clear documents, facts and claims. A party receiving a claim must also respond seriously and attend the proceedings where required.

Further, parties should understand that there is no ordinary appeal against a Tribunal decision. If a party wishes to challenge a Tribunal decision, the challenge must generally be brought by way of judicial review proceedings in the High Court, subject to the applicable grounds and procedure.

In strata management, choosing the correct forum is very important.

If used properly, the Tribunal can be a practical channel for resolving strata disputes in a more structured manner.

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 the Strata Management Tribunal must be assessed based on its own facts, documents, parties involved, amount claimed, remedy sought, Tribunal jurisdiction, the Fourth Schedule to the Strata Management Act 2013, the Strata Management (Strata Management Tribunal) Regulations 2015, judicial review procedure and the applicable laws.