Mall tenants score victory
16/12/2006 The Star By Simon Khoo

KUANTAN: Tenants of one of the town's most famous malls here have scored a victory over the management of the shopping complex.

This follows a decision by the High Court here to terminate the appointment of the entity called Komplex Teruntum Management Corporation (KTMC), which had been collecting maintenance and service charges from the tenants over the past 15 years.

The court ruled that the so-called corporation was neither licensed nor registered under the Companies Act, 1965.

“It appears KTMC is a creature of God and came in existence for convenience’s sake,” Datuk Mohd Apandi Ali said in delivering his judgment yesterday,

Those facing similar predicaments welcomed the judgment, as it was one of the rare times that tenants had scored a victory over a complex management.

The longstanding feud between the tenants and KTMC started in 1991 when former owner Pasdec Properties Sdn Bhd wound up its business.

Subsequently, a firm called Pasdec Management Corporation was formed to manage the complex in the interim period.

In June 1992, the firm was renamed KTMC and has continued to run the complex since.

Justice Mohd Apandi said not a single audited copy of the management's accounts had been submitted to the liquidator.

“There is no transparency and accountability on the part of KTMC in managing the complex,” he added.

Justice Mohd Apandi ruled that the liquidator should be allowed to tender for bids from any licensed property management company to take over the complex management.

He said the successful bidder must be appointed within 12 months of the date of the judgment.

“The liquidator shall be given access, custody and control of all previous accounts as well as collections held and kept in relation to the maintenance and service charges of the complex within 14 days,” the judge ruled.

Lawyer for KTMC Mura Raju asked the court to grant a stay of execution pending an appeal against the decision.

However, there were objections from S. Dhanaraj and Pamela Edward Ephraim (the lawyers for the liquidators), Eugene Louis (creditor of Pasdec Properties) and Deva Premila Devadason (representing three unit owners in the complex).

The lawyers argued they had not received cooperation from KTMC pertaining to the liquidation process and had received warning letters from the state Land and Mines office for non-application of strata titles.

“The fines, ranging from RM100 to RM1,000 a day, dated back 15 years,” said Dhanaraj.

Mohd Apandi rejected Mura Raju's request and asked KTMC to file a written application.