(1) An owners corporation for a strata scheme may give a notice, in a form approved by the Secretary, to the owner or occupier of a lot in the scheme requiring the owner or occupier to comply with a specified by-law if the owners corporation is satisfied that the owner or occupier has contravened that by-law.
‘May’ is a discretionary term so the OC can argue that they are not compelled by the legislation to give a notice.
Case law on this matter is a little thin but ALLEN v STRATA PLAN 54664 [2016] NSWDC 217 implies the OC needs to take steps to actively enforce the by-laws. It will not be enough to simply have a by-law registered on title. The Owners Corporation and Strata Committee must actually take active steps to ensure that the by-laws are complied with.
AND one reported NCAT matter says:
The circumstances in which the management structure may not be functioning or functioning satisfactorily include where the relevant level of management;
- Fails to exercise power or make a decision to prevent a contravention by lot owners and occupiers of their obligations under the Act, including breaches of by-laws
Luong v Owners Corporation SP 87671 and Telmet Ventures Pty Ltd [2015] NSWCATCD 105
So even though the OC is not compelled by the wording of the legislation (s 146 (1)) to send a NTC it appears it is arguable that the case law suggests it is a function of the OC/SC to actively enforce the by laws.
If you need to go to NCAT to seek enforcement cite the above cases as they will assist your application.