Court of Appeal bars developer from converting shared amenities into private assets

The Court of Appeal, chaired by Chief Judge Datuk Azizah Nawawi with judges Datuk Azimah Omar and Datuk Seri Mohd Firuz Jaffril, unanimously rejected three appeals concerning the PJ Centrestage project in Petaling Jaya. It affirmed a High Court ruling that numerous parking bays, basement levels, landscaped areas, rooftops, a reception hall and façade spaces are common property to be overseen by the PJ Centrestage Joint Management Body, not private assets.

The court held that the developer Cherish Springs Sdn Bhd had misrepresented these zones to the Selangor Land Office, resulting in fraudulent strata titles. Leadmont Properties’ use of the disputed parcels as loan collateral led Hong Leong Bank and Maybank to become parties, but the court declared their security interests invalid, citing inadequate verification. The judgment also highlighted the close corporate links between Cherish Springs and Leadmont, controlled by the same family. Overall, the decision reinforces the application of the Building and Common Property Act 2007 to protect buyers’ rights to shared facilities.