EKG Pastries Pty Ltd v The Owners - Strata Plan No. 87145

EKG Pastries Pty Ltd sought a declaration that By-Law 29 of Strata Plan 87145 was invalid as it was contrary to s 83(2) of the Strata Schemes Management Act 2015, and an order that the by-law be recorded on the title of the strata plan. The Owners – Strata Plan 87145 sought to defend the validity of the by-law. The dispute was heard in the Civil and Administrative Division of the NCAT. The legal issue before the tribunal was whether By-Law 29 was contrary to s 83(2) of the Act and therefore invalid. Section 83(2) provides that by-laws cannot impose a levy on contributions to the strata plan unless the levy is for the benefit of owners of a lot in the strata plan. The tribunal held that By-Law 29 was not limited to levying on contributions for the benefit of owners of a lot in the strata plan and was therefore contrary to s 83(2). The tribunal also held that By-Law 29 was ultra vires the powers of the body corporate and was therefore invalid. The tribunal declared By-Law 29 to be invalid and ordered that the Owners – Strata Plan 87145 obtain a certified copy of the order and lodge it with the Registrar General NSW Land Registry Services. The tribunal further ordered that all other steps necessary to ensure that the order was recorded on the common property title of Strata Plan 87145 be taken by the Owners – Strata Plan 87145.