Management Corporation v Aikyu Trading: Access to Settlement Documents under BMSMA

In Management Corporation Strata Title Plan No 0827 v Aikyu Trading Co (Pte) Ltd, the High Court of Singapore addressed whether a Management Corporation (MC) can withhold settlement terms, settlement sums, and expense deductions from subsidiary proprietors (SPs) regarding compulsory acquisition compensation. The court dismissed the MC's appeal, affirming that the Settlement Documents fall under Section 47 of the Building Maintenance and Strata Management Act (BMSMA). The court also found that an agency relationship existed, entitling the SP to the documents. The court ordered the MC to provide the Settlement Documents to the SP.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court held that a Management Corporation must provide subsidiary proprietors with settlement agreements related to compulsory land acquisition.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
The Management Corporation Strata Title Plan No 0827AppellantCorporationAppeal DismissedLostHewage Ushan Saminda Premaratne, Yvonne Mak Hui-Lin
Aikyu Trading Co (Pte) LtdRespondentCorporationAppeal DismissedWonChen Chongguang Daniel, Loh Kah Yunn

3. Judges

Judge NameTitleDelivered Judgment
Andre ManiamJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Hewage Ushan Saminda PremaratneWithers KhattarWong LLP
Yvonne Mak Hui-LinWithers KhattarWong LLP
Chen Chongguang DanielLee & Lee
Loh Kah YunnLee & Lee

4. Facts

  1. Part of the common property was gazetted for compulsory acquisition on 9 December 2011.
  2. The MC was authorized to handle land acquisition proceedings on behalf of subsidiary proprietors.
  3. The Collector made an award of $275,000 in compensation.
  4. The MC lodged a petition of appeal with the Land Acquisition Appeals Board on 26 May 2014.
  5. A settlement was reached between the MC and the Collector.
  6. The Settlement Letter contained a confidentiality clause.
  7. The MC required SPs to sign a Confidentiality & Settlement Agreement before receiving their share.

5. Formal Citations

  1. Management Corporation Strata Title Plan No 0827 v Aikyu Trading Co (Pte) Ltd, District Court Originating Summons No 39 of 2019 (Registrar’s Appeal No 4 of 2020), [2020] SGHC 217

6. Timeline

DateEvent
Part of the common property was gazetted for compulsory acquisition.
Extra-ordinary general meeting of the MC was held.
The MC lodged a petition of appeal with the Land Acquisition Appeals Board.
The Collector sent the Settlement Letter to the appealing SPs.
Mr. Parry Yeo sent an email regarding withholding figures from SPs.
Parry Yeo's affidavit was dated.
Kwek Seow Kew’s affidavit was dated.
Plaintiff SP applied for the Settlement Documents.
Hearing date.
Hearing date.
Hearing date.
Judgment date.

7. Legal Issues

  1. Access to Information
    • Outcome: The court held that the subsidiary proprietor was entitled to the Settlement Documents under s 47(1) BMSMA.
    • Category: Substantive
    • Sub-Issues:
      • Right of subsidiary proprietors to access settlement documents
      • Interpretation of Section 47 of the Building Maintenance and Strata Management Act
    • Related Cases:
      • [2016] SGSTB 1
      • [2018] SGSTB 1
      • [2018] SGPDPC 18
      • [2011] 2 SLR 998
  2. Agency
    • Outcome: The court held that an agency relationship existed, obligating the MC to provide the Settlement Documents to the SP.
    • Category: Substantive
    • Sub-Issues:
      • Existence of agency relationship between management corporation and subsidiary proprietors
      • Duties of an agent to the principal
    • Related Cases:
      • [2013] 4 SLR 308
      • [2016] 3 SLR 1308

8. Remedies Sought

  1. Order for production of Settlement Documents

9. Cause of Actions

  • Application for access to information and documents

10. Practice Areas

  • Real Estate Law
  • Strata Management
  • Land Acquisition

11. Industries

  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Tan Hee Chye v MCST Plan No 395Strata Titles BoardYes[2016] SGSTB 1SingaporeCited as an example of a 'record or document' under s 47(1)(b)(viii) BMSMA.
Timothy Siah Yang Tek v 28th Management Council to MCST 1420Strata Titles BoardYes[2018] SGSTB 1SingaporeCited as an example of a 'record or document' under s 47(1)(b)(viii) BMSMA.
Management Corporation Strata Title Plan No 4436Personal Data Protection CommissionYes[2018] SGPDPC 18SingaporeCited to support the interpretation of s 47(1)(b)(viii) BMSMA in relation to common property.
Yap Sing Lee v Management Corporation Strata Title Plan No 1267High CourtYes[2011] 2 SLR 998SingaporeCited to show that s 47(1) BMSMA does not exclude legal advice privilege.
Alwie Handoyo v Tjong Very Sumito and another and another appealCourt of AppealYes[2013] 4 SLR 308SingaporeCited for the core elements of an agency relationship.
Grains and Industrial Products Trading Pte Ltd v Bank of IndiaHigh CourtYes[2016] 3 SLR 1308SingaporeCited for the common law position on the duty of an agent to inform and provide information to his principal.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Building Maintenance and Strata Management Act (Cap 30C)Singapore
Section 47(1) of the Building Maintenance and Strata Management Act (Cap 30C)Singapore
Land Acquisition Act (Cap 152, 1985 Rev Ed)Singapore
Section 10 of the Land Acquisition Act (Cap 152, 1985 Rev Ed)Singapore
Section 2(5) BMSMASingapore
Section 24(3) BMSMASingapore
Section 29(2)(b) BMSMASingapore
Section 101(1)(c) BMSMASingapore
Sections 32(1)–32(3) BMSMASingapore
Section 32(8)(b)(ii) BMSMASingapore
Section 47(1)(b)(iv) BMSMASingapore
Section 29(1)(g) BMSMASingapore
Section 29(1)(d) BMSMASingapore
Section 47(1)(b)(vii) BMSMASingapore
Section 2(1) BMSMASingapore
Section 29(2)(a) BMSMASingapore
Section 24(2)(a) BMSMASingapore
Section 29(3) BMSMASingapore
Section 29(1)(a) BMSMASingapore
Section 113 BMSMASingapore
Section 86 BMSMASingapore
Section 22 of the Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed) (the “SCJA”)Singapore
Section 22(2) SCJASingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Management Corporation
  • Subsidiary Proprietor
  • Settlement Documents
  • Compulsory Acquisition
  • Common Property
  • Building Maintenance and Strata Management Act
  • Settlement Letter
  • Confidentiality
  • Agency

15.2 Keywords

  • Management Corporation
  • Subsidiary Proprietor
  • Settlement Documents
  • Compulsory Acquisition
  • BMSMA
  • Singapore

16. Subjects

  • Strata Management
  • Land Acquisition
  • Access to Information

17. Areas of Law

  • Land Law
  • Compulsory Acquisitions
  • Strata Titles
  • Building Maintenance and Strata Management Act