Pf Mohamed Hassan claimed against Df Haji Mahomed Eusop (now represented by the appellants) a pice of land in KL. Land was sold by one Mr Keyser to Pf, transferred to Pf. Pf unable to discharge promissory note, Df become surety for him and discharged PN accordingly.
Pf transferred land to Df and executed an
agreement "...Mahomed Hassan is justly indebted unto the said Haji Mahomed Eusop in the sum of 1180 dollars, which he is unable to pay at present; and whereas for securing the repayment of the said sum of 1180 dollars he, the said Mahomed Hassan, has this day transferred unto the said Haji Mahomed Eusop his land at Batu Road in Kuala Lumpur..."
Condition of this agreement: If Pf was able
to repay within six months from the date hereof, the sum of 1180 dollars, with interest and miscellanous, the land will be transfered back to Pf, otherwise this agreement shall become null and void.
What happened No payment, claim of Pf confined to asking declaration that he was still entitled to redeem land Relief granted by trial judge, affirmed by CoA Hence this appeal
Pf: this was A CONVEYANCE IN
SECURITY and entitled on paying the debt to get a reconveyance of the land. Df: It's a transfer with a conditional contract for resale - payment not being made on time, no obligation to reconvey. Df: If this was CiS, null and void [s. 4 Registration of Titles Regulation 1891] Morever, any action founded on agreement barred by Limitation Enactment 1896
Trial judge: CiS
Next point: if CiS, is it null and void in respect of s 4 Reg of Titles Reg 1891 Transfer, mortgage, charge null and void unless in accordance with provision of this Regulation - relating to mortgages - only exercisable in accordance with Part V11 s 41 - land to be made charge, must execute charge in form in Sch. E, registered.
NOW: Agrmnt not in Sch. E, not
registered. Confer no real right in the land, remained unburdened property of Df. - s 4 has no application The agreement was an executory agreement - conditional promise to transfer Valueless as a transfer but good as a contract
Agreement was executory, any action
should be brought within period of limitation. Issue: Contract or trust (60 years)? Right of Pf to sue not preserved under Art 115 of Limitation Enactment