By John Chin

IPOH, Malaysia: The joint management body (JMB), the developer and five other respondents to a landmark high rise leisure property in Ipoh - The Haven Resort, Lakeside Residences were granted a stay by the High Court here until the outcome from the Court of Appeal is established.

Justice Datuk Abdul Wahab Mohamed, who made the earlier ruling, granted the order after the respondents convinced him of the urgency.

The developer had applied for a stay over his ruling last month that they must refund RM1.13 million to the JMB over decisions made by the body to develop the property.

The plaintiffs are eight unit (parcel) owners, who filed a suit seen as a landmark case here in 2020, claiming that the respondents had used the JMB’s sinking fund to pay land amalgamation premiums and to build a tennis court.

About RM950,000 was paid towards the premiums, while another RM180,000 was utilised to build the tennis court.

The court also found that the JMB had improperly given the developer a 10-year rent-free lease of a section of the common property, which was used to run a spa and restaurant.

JMB member Joanne Yu said that the report, on the earlier court decision that the decision was made based on the "balance of probabilities" by a news portal, had opened up doubts and queries about the proceedings.

It may sent a wrong impression of the property, hence the urgency needed to address the matter, she said.

"The first question is how did the press or the portal manage to publish the decision of the court when the respondents or their lawyers were not yet served the court judgement. The judgement was reported to be circulating from August 25, 2025. To date, none of the respondents have received the formal judgement copy.

"The second question is, was there a balance of probabilities and what were the relevant considerations that constitute this balance," said Yu.

The pertinent points of the judgement are for the refund to JMB RM950,000 and RM180,000, which were land premium and construction of tennis court paid to the Land Office and the appointed contractor by the JMB, and the developer to pay rental for a section of the common property, which was used to run a spa and restaurant, despite previously securing from the JMB a 10-year rent-free lease.

It was reported that the court ordered a forensic audit to be conducted and the Defendants, except the first respondent - the JMB, to pay RM100,000 in costs to the eight plaintiffs.

Yu said that the six respondents were taken aback over the court's decision as the eight complainants do not have locus standi to represent the majority of the JMB members, who comprises a total of 516 parcel owners.

Unless it is illegal, the decision of the JMB is by its properly elected Joint Management Committee (JMC) and its properly convened AGMs must prevail.

"These eight parcel owners who own less than two percent of the total parcels of this development do not have locus in filing their case. These owners could have brought up their grievances to the JMC instead of seeking the courts’ readdress. Also, how can a minority group override a majority vote," Yu pointed out.

The developer - Haven Sdn Bhd, was also ordered to pay the backdated rental fees despite previously securing a 10 - year rent free concession from the JMB.

The understanding is that it’s an independent willing ‘buyer’, willing ‘seller’ transaction which took into consideration that quality food service is required in the development for both unit owners and guests, a huge some of capital expenses is required for the restaurant and it is unlikely for a restaurant in the ‘restricted’ development to thrive.

Again, the lease is within the jurisdiction and authority of the JMC and not the individual owners.

It is learnt that 274 parcel owners, comprising 53% of the parcel owners, had sought legal intervention to be involved in the suit and they have sought to have their interest protected but their request were disallowed.

Yu thanked the court for allowing the stay because it allows the operations of the Haven to continue unabated pending his lawyers' move to appeal the decision.

The two decisions made by the JMB was the payment of the construction of the tennis court to its contractor and the payment of the land premium to the state authority for the lease of the 1.67-acre land, which two decisions had been approved and ratified at their respective properly convened JMCs and Annual General Meetings (AGM).

Also, the lawyers would be strongly rebutting the need for an administrator to be appointed and a forensic audit to be conducted when the JMB and the development had been managed exemplarily for the past decade.

The freezing of the account also serves no purpose.

The plaintiffs were not able to submit any evidence of any wrong doing.

Their case only hinged on their claim of “suspected wrongdoing”.

It is also not tenable for hotel guests to be charged for the use of amenities such as the swimming pool and tennis court because the lessor had leased out their units to the hotel guests.

It is the same situation as owners who rent out their units to their tenants.

The lessor unit owners who rented out their units had given up their right to use common facilities.

The respondents against whom judgment was entered, were the developer, JMB, its former chairman Tan Sri Megat Najmuddin Megat Khas, JMC members Peter Chan and Amy Lau, and land owner Superboom Sdn Bhd.

The Haven is a landmark development project in Ipoh, as it is home to both a luxurious retreat amidst the tranquillity of a spacious lake and recreational living.