GLASBY and THE OWNERS OF 84 CLYDESDALE STREET COMO STRATA PLAN 9012

In this matter, the plaintiff, Glasby, sought a declaration that the defendants, the owners of a lot in a strata scheme, were not liable for certain on-charged debt recovery expenses imposed by the strata company. The case was heard in the Supreme Court of New South Wales. The plaintiff argued that the strata company had no authority to impose these charges, as they were not in accordance with the statutory provisions governing strata titles.

The central legal issue was whether the resolutions passed by the strata company were valid and enforceable. Specifically, the court had to determine if the strata company had the authority to impose on-charges for debt recovery expenses and whether the resolutions were properly passed. The case required the court to interpret the statutory provisions governing the powers of strata companies and the process for passing resolutions.

The court found that the resolutions were invalid because they did not comply with the statutory requirements. The court held that the strata company did not have the power to impose on-charges for debt recovery expenses without the consent of the affected lot owners. The court emphasised that the statutory scheme provided a clear process for imposing on-charges, which was not followed in this case. As a result, the court granted the plaintiff's application for a declaration that the defendants were not liable for the on-charged debt recovery expenses.

The court ordered that the defendants were not liable for the debt recovery expenses imposed by the strata company. The court also declared that the resolutions passed by the strata company were invalid and of no effect. This decision highlights the importance of following statutory procedures when imposing on-charges in a strata scheme.