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Land Law
Land Law
Land Law
Edgar Joseph Jr, UMBC comments were restricted to its fact, did not prevent him
from finding an equitable easement. S.206(3) provides for liberal application of
Templeton equity wherever there is basis.
Equitable interest
S.206(1)(b) NLC registrable interest only takes effect upon registration.
dealing not registered shall not affect contractual operations of transaction.
S.206(3) NLC
Phileoallied Bank v FC said that absolute assignment by borrower of all his right over immovable
Bhupinder Singh property that has no issue document of title to a lender as security of loan
amounted to equitable mortgage.
BARE TRUST
registrar caveat cannot be entered vs a person who has parted with his title /
interest in land to purchaser and is merely holding as bare trustee
Temenggong
Securities v Registrar V & P in SPA have both fulfilled all their obligation under agreement:
of Titles Johor - P paid full purchase price
- V executed transfer form & surrendered IDT
english equitable principle like bare trust concept be resorted to as regard the
Teo Keang Sood v tenure(保有) and incidents of various kinds of dealing in land in respect of period to
Khaw Lake Tee registration.
if bare trust concept applied and the prior claimant had become equitable owner
before the subsequent claimant's interest came into existence, prior claimant will
take priority as the time vendor entered into 2nd transaction with the subsequent
Ng Kheng Yeow claimant vendor no longer has any interest in the land. Hence he could not have
given any interest of the subsequent claimant.
case of contest btwn 2 or more equitable claimants, the first in time, all things in
Butler v Fairclough, equal, is entitled to the priority.
UMBC Bhd v Goh However first in time may lose his priority through any act or omission of his which
Tuan Laye causes the subsequent claimant to act to his detriment or prejudice.
S.340(1) registration of transfer indefeasible
enter private caveat to maintain status quo until dispute resolved, caveatable interest
S.323(1)(a) within S.323(1)(a)
fraud exception.
Sinnaiyah & Sons, prove the fraud on balance of probabilities
Datuk Jaginder Singh v Tara Rajaratnam, represented to TR was signing a security
document when in actual fact signing document of transfer. Court found fraudulent
misrepresentation.
S.340(2)(a)
Abu Bakar bin Ismail v Ismail Husin, party of privy to the fraud, title will be defeasible
Tan Ying Hong, S.340 provides for deferred indefeasibility, no need to see if bona fide
purchaser for valuable consideration or not, as used to be the position Boonsum.
void instrument.
UMBC v Syarikat Perumahan Luas (No.2), interest of chargee defeasible since
S.340(2)(b) registration was obtained by means of an insufficient or void instrument
OCBC V Pendaftar Hakmilik Negeri Johor, COA proviso to S.340(3) does not apply to
S.340(2). The proviso applies exclusively to which S.340(3) will only take effect after
the immediate registered proprietor under S.340(2) had transferred his defeasible title
or interest to someone else. The appellant bank as chargee, would not be
protected because it was claiming through or under Ng See Chow. conjunctive
Owe Then Kooi v Au Thiam Seng, HC held O could get land back from A but subject to
Proviso S.340(3) charge of bank as bank was a bona fide purchaser with valuable consideration had an
indefeasible charge. Even if the charge is held to be
valid, chargee acquired only interest and not title to and registered proprietor of
charged land can in fact further sell the land to a third party who take subject to
registered lease /charge. disjunctive
CIMB Bank v Am Bank, FC upheld COA decision, Wong was immediate purchaser
since CIMB charge was extinguished due to forgery. Ambank was subsequent
purchaser therefore Ambank charge is protected under proviso.
The indefeasibility is postponed until time when a subsequent purchaser acquires title
in good faith & for valuable consideration
proviso does not apply to S.340(2). It only applies to transactions subsequent to the
one in which vitiating circumstances took place.
M & J Frozen Food v Siland, Supreme court explained that if registration conferred
immediate indefeasibility, then once one's title or interest is registered, it couldn't be
challenged, that it must become unimpeachable. However this is not the case under
NLC where apart from fraud or misrepresentation there are other circumstances that
can render owner's title defeasible.
Adorna Properties, COA held NLC provided for deferred indefeasibility and said that
proviso (3) only applied to transactions subsequent to the one where the vitiating
circumstances took place.
Tan Ying Hong, Proviso to S.340(3) is directed towards (3) alone & not (2).
Therefore, a person/body in the position of Adorna Properties could not take
advantage of the proviso to (3) to avoid its title or interest from being impeached.
The FC in Adorna Properties had misconstrued S.340(1),(2),(3) & came to erroneous
Deferred conclusion that the proviso (3) equally applies to (2). By doing so FC gave recognition
indefeasibility to concept of immediate indefeasibility under NLC which is contrary to provisions in
S.340.
Au Meng Nam, Gopal Sr Ram stated that Adorna was wrongly interpreted:
- central to doctrine of indefeasibility housed in S.340 that IDT must be genuine.
In Adorna, instrument of transfer & other doc were forged but title was genuine. The
case here title was forged. Hence Adorna clearly distinguishable from facts of the case.
- FC overlooked the critical words "to whom it may subsequently be transferred"
Adorna equated purchaser & registered proprietor. In doing so, FC clearly
overlooked S.5 that defined them separately & differently.
Vendor has no title to pass, nemo dat quod non habet (you cannot give what you do
not have). The only exception was in favour of bona fide purchaser for value.
Asia Commercial Finance v Development, would not render proceeding void, without
any evidence reserve price undervalue indicate fraud
reserve price too low
People Realty v Hong Leong Bank, dismissed as chargor did not produce evidence
valuation method wrong.
Asia Commercial Finance v Development,chargee owes a duty to a chargor to take
reasonable care to obtain true market value of land at date of sale. A sale at undervalue
indicate fraud or want of proper care.
Puah Bee Hong v Pentadbir Tanah, it was held that an order of superior court must be
complied until it is set aside.
Low Lee Lian
- CTC 3rd party charge
UOB v Soon Kin Fah, legal charge was perfectly valid & accepted by banking and legal
profession, there will be no CTC.
Low Lee Lian
- CTC
O83R2, not less than 4 clear days b4 day fixed for 1st hearing, Plt shall serve on D OS
supported by copy of affidavit
MUI v Cheah Kim Yu, OFS is made, drawn and perfected judge functus officio and has
no power to set aside the order.
UMB v Chong Bun Sun, Statutory provision on manner of sale which court ought to
make under S.257 that S.257(1)(a) does not provide for any other method of sale. It will
private be clear usurpation of the legislative function if an order for sale by private treaty is
treaty allowed.
S.266, chargor right to tender payment b4 conclusion of sale, OFS cease to take effect
S.257(1)(g) BPP settled not later than 120 days & no extension of period
extension S.257(1)(h) BPP is not settled forfeited & disposed off in S.267A
S.267A, Deposit used to pay quit rent & expenses incurred in making & carrying OFS.
The balance if any will be retained in the account of chargor for reducing amount due to
chargee.
S.21(1) of LA 1953, forchargee to initiate foreclosure proceeding in obtaining order for
sale on the charged land is 12 years from the date when the right to receive the money
accrued.
RHB Bank Berhad v Dato’ Haji Muhammad bin Hamzah, Federal Court held that:
application by RHB to fix new auction dates were merely consequential proceedings
taken to enforce and execute OFS that was granted in 2002 i.e. it is merely executing
already existing proceedings to enforce a judgment- it is not a fresh action and
Limitation therefore the Act is not applicable to such a situation.
- It can only be a fresh proceeding, if and only if RHB decided to only now (in 2017) to
pursue enforcement proceedings (i.e. applying for an order for sale) against Datu Haji
Hamzah for the monies that he owes them; and
- OFS is not a judgement and therefore is not bound by the rules set under section 6(3)
of the Act.
This is because:
§ The court hearing the application for an order for sale does not make any
adjudication upon any substantive issues (i.e. determining the validity of the law or
whether the law was applied correctly etc.); and
§ The monies that Dato Haji Hamzah owed to the bank is not a judgment debt (a
judgment debt is a money that a person owes to the party that won a legal case)- it is a
debt owed under the provision of the National Land Code and RHB is merely exercising
their rights to enforce a remedy that was provided for under the Code.
S.260(1) land is held by Land Office Title, the chargee must apply to LA for OFS
S.261 LA should hold an enquiry to determine application
LA shall order sale of land / lease to which charge in question relates unless he
S.263(1) is satisfied of the existence of CTC
read tgtr with S.253(4) means that only chargor & chargee can appear in
S.262(1) hearing unless an authorisation in writing was given to representative of
chargor.
collector whether there had been default in payment provided for. If he was so
Suppiah v Ponnampalam satisfied, he was obliged to make an order for sale.
LA's power in the inquiry are limited, cannot go behind the charge in view of
Gurpal Singh v Kananayer S.340(1) relating to the indefeasibility of title. Only HC has the power to set
aside any registered interest.
court said that S.261 imposes duty on LA to order the sale of the land to which
charge relates unless he was satisfied that:
- No existence of charge
Gov of Malaysia v Omar - No breach by chargor of the agreement complained of or
bin Hj Ahmad - There was such breach it had not been caused by chargor; eg where chargor
tenders payment & chargee refuses to accept them
Removal of
Registrar's
caveat
Public Bank v PTG JB, registered chargee cannot apply to registrar for caveat to be cancelled.
D & C Bank v Govt of Malaysia, registered chargee cannot apply for removal under S.417.
Butler v Fairclough, failure of prior claimant to enter a caveat caused him to lose priority.
S.326, removal by registrar, only by person / body with registered title or interest
Procedure:
○ Apply in F19H to registrar with prescribed fee.
○ Registrar serve notice of intended removal F19C.
○ S.326(1B), caveat lapse expiry of 2 months unless court extended the time.
○ After receiving notice, caveator must apply to court for extension.
○ Caveator apply inter parte (ex parte only in exceptional cases) by OS + affidavit.
S.329(1) caveator wrongfully or without reasonable course enters fails to withdraw any
private caveat shall be liable to compensate person or body who suffers any damage or loss.
(2) Court has ordered the removal of any private caveat under S.327, or has refused an
application under S.326(2) for an extension of time such caveat, or where the Registrar has
removed any caveat pursuant to S.326(3), the Registrar shall not entertain any application
for the entry of a further caveat.
Lourdenadin v Ratnavale, 1st caveat is removed by Registrar, caveator can enter 2nd caveat
on the same ground if he had not been properly served with notice intended removal in
F19C. Hiap Yiak
Trading, if 1st caveat is voluntarily withdrawn by caveator himself, then he can enter 2nd
caveat on same land on same ground. S.329(2) makes no reference to S.325.
S.328(1), duration of caveat is 6 years unless it is withdrawn by cavaetor under S.325, lapses
pursuant to S.326(1B) or removed by Registrar pursuant to order of the court under S.327.
duration
Thevathason v Kwong Joo, court held that if first caveat lapses after 6 years, caveator may
enter 2nd caveat on the same land based on the same grounds.
Applicant has burden to satisfy sufficient grounds in fact & law to be extended.
Luggage Distributors, 3 stage test:
caveatable interest within S.323(1)
Macon Engineers, existence a valid agreement for sale of land, purchaser is entitled to
lodged a caveat to protect his rights under contract.
Chia See Yin, purchaser has no caveatable interest where vendor has validly terminated SPA
bcs of purchaser's failure to pay BPP within stipulated period.
EM Buxton, purchaser under contract for sale is claiming the return of deposit has no
caveatable interest as he is only claiming deposit.
Million Group v Lee Shoo Koon, where ctt has not been concluded, no caveatable interest
Extension
Pengurusan Danaharta Nasional v Astron, monetary interest not caveatable.
Taipan Focus v Baiduri PJ, a mere debt being monetarily not caveatable.
Hew Sook Ying, managing director or shareholder or officer of that company does not have
caveatable interest where caveat not entered to protect interest.
Natsafe (M) S/b V Loi Teak Kuong, no caveatable interest on grounds of shareholding
/settlement agreement. D's right merely monetary.
267(2) provides that even if granted consent of chargee, no tenancy exempt from
registration granted by chargor after date of registration of charge shall be binding on
purchaser unless prior to date of registration of certificate of sale, tenancy had become
protected by endorsement on register doc of title
Hotel Ambassador v Seapower
Dealing but not restraint on dealings Dealings and restraint on dealing owing to
lienholder caveat
Can have more than one charge on one Can have only one lien at a time. Lien holder
property. possession of IDT. Lien restrains further lien
Custody of IDT with 1st chargee
Chargee interest can be registered and takes Created by entry of lien holder caveat under
effect upon registration, S.243. Pending S281(1) by lien - holder who has custody of IDT or
registration charges may enter private caveat, duplicate lease
S.323(1)
Chargee can apply for an order for sale Lien holder must first obtain judgement on debt
application by HC or Land Administrator b4 proceeding to apply for order for sale.
Application made to HC or Land Administrator
More costly, takes time and involves Cheaper, quicker and involves less formalities
formalities
S.340 provides that registered charge is an No protection under S.340(1) as it is not capable of
indefeasible interest being registered
equitable chargee could not obtain OFS under S.256 as the court held that only
Oriental Bank v Chup registered chargee could enforce his right of foreclosure under NLC.
Seng Restaurant
Mahadevan v Manilal bank equitable charge since there is no provision in NLC prohibiting equitable
& Sons charge
equitable charge could enter private caveat
Standard Chartered
Bank v Yap Sing Yoke
entry of lien holder's caveat over a piece of land has same effect as private
S.330(5) caveat.
lien holder must 1st obtain judgement for amount due b4 he can apply to
court for OFS.
S.281(2) Lien- holder when enforcing his lien is considered to be a secured creditor.
dealing not registered in accordance with NLC shall not affect contractual
S.206(3) rights of the parties.
lien-holder's caveat can only be entered when IDT was deposited to banker
and there must be consent of registered owner to entry of caveat.
Megat Najmuddin v If lien-holder's caveat is sufficient security then there would be no
Perwira Habib Bank negligence.
parting with possession of IDT or duplicate lease for purpose other than that
Manickavasagam of surrendering the lien will not cause lien to be lost.
Chetty v Thomas
no need to obtain developer consent to assignment, express notification to
developer will suffice.
S.22D HD (Control Developer provide all necessary and accurate confirmation of the records in the
&Licensing)A 1966 register whenever requested subject to a payment of a fee not exceeding RM50 or
such amount as may be prescribed.
not subject to HDA, consent can be imposed, condition must be fulfilled provided
Lee Ming Chong clear and reasonable.
express notification has been given to developer, developer to consent on the
S.4(3)CLA 1956 transfer.
fee of RM2,000.00 demanded by the Developer as its administrative fee is
Keepahead Holdings inordinately high. A fair and reasonable amount should be a sum of RM500.