FACTS OF THE CASE

20 OCTOBER 1991
Jaytra Sdn Bhd entered into an agreement with the

Appellant ( Hong Huat Enterprise ) to grant a license to mine and sell sand, rock and other materials on the land [ Lot 208, Mukim of Batang Melaka, Daerah Jasin, Melaka ]

AUGUST 1992
Appellant discovered Jaytra had no capacity to enter

the agreement (because they have been declared bankrupt) Appellant knew that the agreement made was invalid but they chose to ignore.

20 AUGUST 1992 / 22 SEPTEMBER 1992

Bank Utama (Chargee) issued notice to Appellant to

seize all its operation on the land and vacate.

Appellant persuaded Bank Utama to purchase all Jaytras properties for RM6.2million. However, the sale must be made through another company Airport Auto Centre Sdn. Bhd. (AAC) AAC has no fund to purchase, thus they requested appellant for deposit amounting to RM 200,000. Appelant agreed provided:

Right to purchase continued mining activities. AAC repurchased - 30 days completion. If not exercised Appellant right to mining. If sale not completed or sold to another party, AAC will refund.

12 FEBRUARY 1993
Bank Utama received Consent Order from the court

to take all Jaytras landed properties.

31 MAY 1993
Sale and Purchase agreement entered between

Jaytra (Vendor), AAC (Purcahser) and Bank Utama (Chargee / Liquidator)

10 JUNE 1993
Another Sale & Purchase Agreement of 4/10

undivided share of the land was entered between AAC and Appellant. (Option to repurchase the land by AAC)

9 DECEMBER 1994
Option to repurchase lapsed. Jaytra transferred the land to the Respondent (Golf

Vale) despite the Court Order.

14 DECEMBER 1995
Respondent issued notice to the Appellant stop

activities and vacate the land.

22 DECEMBER 1995
Appellant alleged - not a trespasser and

occupation of land lawful under 1st and 3rd agreement.

2 JULY 1997
Similar demand as the first notice give Appellant

7 days to vacate.

7 JULY 1997
Appellant maintained same stand refused to

vacate.

12 SEPTEMBER 1997
Respondent filed civil suit to the Appellant.

ISSUES

JUDGEMENTS

COMMENTS