Published tribunal order
Tenancy Tribunal case 9066804 — Tenancy dispute in Mangere, Auckland
Decided 8 Sept 2025 · Published 8 Sept 2025 · Application 9066804
Landlord favoured
- Costs
- Unit Titles
Order
was re-issued on 8 October 2025, to correct an error in the calculations in the table below.
ORDER
- Pravinesh Sharma, Kalpana Kavita Sharma must pay Body Corporate 369379 $8,978.67 immediately, calculated as follows: DescriptionsApplicantRespondent Levy$3,807.02 Filing Fee$500.00 Costs: BC Management charges$920.00 Costs: Legal fees s124 UTA$3,079.01 Costs: appearance fee$230.00 Total award$8,536.03 Total interest$442.64 Total award with interest$8,978.67 Total payable by Respondent to Applicant $8,978.67
Reasons
- Both parties attended the hearing.
- The body corporate has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
Does the Unit Owner owe the levies claimed?
- A unit owner must pay all body corporate levies and outgoings payable for the unit. See sections 80(1)(f) and 121(1) Unit Titles Act 2010.
- The body corporate has determined the levies payable and unit owner's share has been calculated according to their utility interest.
- The body corporate has fixed the due date for the levies to be paid, and the unit owner has not paid the levies by that date. See section 124(1) Unit Titles Act 2010. The body corporate has provided records to prove the amount claimed.
- Mr Kumar accepted that the operational levies were owing. However, he made arguments that the special levy for roof repairs which was fixed by the body corporate during an EGM held on 7 June 2024 should not be charged to him. He claims that the work to not need doing, and he could have obtained cheap prices. He felt bullied by these charges and the approach taken by the body corporate. It appears that the roof issue has been a source of dispute and disagreement which has led to the arrears of levies. Mr Kumar declined to attend the EGM. Ms Donovan, who appeared for the body corporate, advised that of the roof repair levies 50% were paid out of the contingency fund. The special levy for the roof work was raised so that the contingency funds were not exhausted.
- S121 UTA allows body corporate to levy the owners for contributions. It appears that the EGM was properly constituted. Therefore, the decisions made by the body corporate at the EGM are binding on Mr Kumar.
- I find that the respondents are liable to pay the outstanding levies.
Is the Unit owner liable for interest?
- If a unit owner fails to pay levies by the due date, interest accrues on the unpaid balance. A body corporate may charge interest up to 10% per annum. See section 128 Unit Titles Act 2010.
- The body corporate has resolved to charge interest at 10% per annum on unpaid levies. The Body Corporate has proved the amount of interest owing from the due date to the hearing date.
Is the Unit owner liable for costs?
- Pursuant to section 124 UTA, and as resolved at meetings of the Body Corporate, the Body Corporate is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to the Body Corporate. In accordance with the judgments (of the District Court and Court of Appeal respectively) in Body Corporate 162791 v Cheah DC Auckland, CIV2014-004- 0120, 24 June 2014 and Body Corporate 162791 v Gilbert [2015] NZCA 185, the Tribunal must order that the reasonable costs incurred by the Body Corporate in recovering the levies, objectively assessed, be paid by a defaulting unit owner. I am satisfied that the costs ordered above are reasonable. I note that there has been a large amount of work following up the unpaid levies. I also award an appearance fee for Ms Donovan’s attendance for one hour at the rate set out in the correspondence with the body corporate from her firm.
- Because the body corporate has succeeded with the claim, I have reimbursed the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.