Win for Owners Corporation: Tribunal Rejects “Urgent” Compulsory Manager Bid

Introduction 

Compulsory strata management in NSW is a “drastic” remedy that removes a strata scheme’s democratic rights. Lot owners often attempt to use “interim” (emergency) applications to force this appointment quickly. So what happens when a lot owner claims a scheme is dysfunctional simply because repairs are running late?

In this 2025 NCAT strata dispute, PBL Law Group successfully defended an Owners Corporation, convincing the Tribunal to dismiss an urgent application for a compulsory manager.

The Facts 

The Owners Corporation was responsible for rectification works to the roof of the strata scheme. Under previous consent orders, these works were supposed to be completed by 30 July 2025. The deadline was missed, and the works were still ongoing in late 2025. Frustrated by the delay and ongoing disputes over access and dilapidation reports, a group of lot owners filed an urgent application seeking to strip the Owners Corporation of its management rights immediately.

The Problem 

The applicants argued that the Owners Corporation’s failure to meet the July deadline demonstrated a “disregard for the lot owner’s legitimate interests”. They claimed the situation was “urgent” because the Owners Corporation would continue to ignore their rights in the future. If successful, this argument would have allowed the Tribunal to seize control of the scheme based on a missed deadline, setting a dangerous precedent for any scheme managing complex building works.

Defence at the Tribunal Representing the Owners Corporation

The defence focused on the strict statutory definition of “urgency.” We submitted that there was “no urgency” because the works were “currently underway” and scheduled for completion in 2026. We argued that the appointment of a compulsory manager would not speed up the construction process. Furthermore, we pointed out that the applicants waited until September to file for “urgent” relief regarding a July deadline, undermining their claim of emergency.

The Decision 

The Tribunal accepted the Owners Corporation’s submissions and dismissed the application. The Senior Member found “insufficient evidence… to establish that there are urgent considerations“. The Tribunal accepted that while the Owners Corporation had not met the original deadline, the fact that works were underway and a superintendent had been appointed meant there was no immediate crisis requiring a compulsory manager.

Conclusion

The case shows that NCAT will not appoint an interim compulsory manager solely due to missed deadlines if works are progressing. PBL Law Group successfully defended Owners Corporations against aggressive “interim” applications by dismantling the claim of urgency. This outcome protects the Owners Corporation’s right to manage its own affairs and complete its building projects without external interference.

This case highlights the importance of expert legal representation in complex strata disputes. If your Owners Corporation requires assistance navigating NCAT applications or other issues, contact PBL Law Group’s expert strata lawyers. Our team can provide the strategic advice needed to protect your rights and ensure effective management.