UDL3622 Land Law II Trimester 2, 2020/2021

Topic 2 Indefeasibility of Titles and Interests

Table of Contents
2.1 Effect of Registration - Indefeasibility of Title/Interest – s 340(1) ............. 1
2.2 Exceptions ........................................................................................................ 2
2.2.1 Meaning of ‘shall not be indefeasible’ – s 340(2) ............................................ 2
2.2.2 Fraud - s 340(2)(a) ............................................................................................ 2
(a) Definition of Fraud ........................................................................................... 2
(b) Whether Mere Knowledge of Unregistered Claim/Interest Amounts to Fraud 4
2.2.3 Misrepresentation – s 340(2)(a) ........................................................................ 5
2.2.4 Forgery - s 340(2)(b) ......................................................................................... 6
2.2.5 Void or Insufficient Instrument – s 340(2)(b)................................................... 7
(a) Contracts With or By Infants ............................................................................ 7
(b) Invalid Power of Attorney ................................................................................ 7
(c) Dealings in Contravention of a Restriction in Interest...................................... 7
(d) Moneylending Transactions which are Void or Unenforceable ....................... 7
(e) Issuing of duplicate title under Mistake ............................................................ 8
(f) Fake land title .................................................................................................... 8
2.2.6 Unlawful Acquisition by Purported Exercise of Power or Authority – s
340(2)(c) ........................................................................................................... 8
2.2.7 Other Statutory Exceptions ............................................................................... 8
(a) Power of Registrar to Correct Errors – s 380 .................................................... 8
(b) Power of Court under s 417 .............................................................................. 8
(c) “… By Operation of Law …” ........................................................................... 9
2.2.8 Claim in Personam .......................................................................................... 10
2.3 Operation of Other Statutes ......................................................................... 10
2.3.1 Enforcement of written law under s 4(2) NLC ............................................... 10
2.3.2 Enforcement of other written law to prevent or to nullify the dealing under the
NLC................................................................................................................. 10
2.4 Position of Subsequent Purchaser Taking Defeasible Title/Interest ........ 11
2.5 Effect of Non-registration............................................................................. 11
2.5.1 Rights under Agreements – s 206(3) .............................................................. 11

References:
1. Teo & Khaw Chapter 4
2. Sihombing Chapter 20
3. David Wong Chapter 10
4. Joshua, Chapter 5
5. Salleh Buang, Chapter 8
6. Ainul Jaria Maidin, Chapters 4 & 5

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UDL3622 Land Law II Trimester 2, 2020/2021

Topic 2 Indefeasibility of Title and Interests

2.1 Effect of Registration - Indefeasibility of Title/Interest – s 340(1)

 Effect to registration: indefeasibility: s 340(1).

 Definition: Lord Wilberforce in Frazer v. Walker [1967] AC 569, at 580

 Dr. Ti Teow Siew & Ors v. Pendaftar Geran-Geran Tanah Negeri Selangor
[1982] 1 MLJ 38, 39, Hashim Yeop A Sani J

 Read s 89, s 340 and s 341 carefully for discussion

 Pendakwa Raya v Tan Sri Muhammad b. Muhammad Taib [1999] 2 MLJ 305
 PJTV Denson (M) Sdn. Bhd. v Roxy (M) Sdn. Bhd. [1980] 2 MLJ 136, Raja Azlan
Shah CJ
 Gibbs v Messer [1891-4] All ER Rep Ext 2047; [1891] AC 248
 Buxton & Anor v Supreme Finance (M) Berhad [1992] 2 MLJ 481

 Permanency of indefeasibility: immediate indefeasibility1 v deferred

indefeasibility2

1
Frazer v Walker [1967] 1 All ER 649
Doshi v Yeoh Tiong Lay [1975] 1 MLJ 85 FC
2
Subramaniam a/l NS Dhurai v Sandrakasan a/l Retnasamy & Ors [2005] 6 MLJ 120
Pendakwa Raya v Tan Sri Muhammad b. Muhammad Taib [1999] 2 MLJ 305
Mohammad Bin Buyong v Pemungut Hasil Tanah Gombak & Ors [1982] 2 MLJ 53
M& J Frozen Food Sdn. Bhd. & Anor v Siland Sdn. Bhd. & Anor [1994] 1 MLJ 294
Boonsom Boonyanit v Adorna Properties Sdn. Bhd. [1997] 2 MLJ 62 CA
But Federal Court in Adorna Properties Sdn. Bhd. v Boonsom Boonyanit [2001] 1 MLJ 241 FC
disagreed. See Eusoff Chin CJ’s judgment.

This Federal Court decision was not accepted and criticised by subsequent Court of Appeal cases.
Subramaniam A/L NS Dhurai v Sandrakasan A/L Retnasamy & Ors [2005] 6 MLJ 120 FC at 126-127,
128-129, per Gopal Sri Ram CAJ
Ismail Bin Mohamad & Anor v Ismail Bin Husin & Ors [2005] 7 MLJ 103

Latest stand: Tan Ying Hong v Tan Sian San & Ors [2010] 2 MLJ 1 FC – ‘deferred indefeasibility’.
In the absence of any of the vitiating factors laid down in s 340(2) NLC, a title, once registered, is
indefeasible.
Teh Bee v K Maruthamuthu [1977] 2 MLJ 7 FC
Ong Chat Pang & Anor v Valliappa Chettiar [1971] 1 MLJ 224 FC

Latest cases:
State Tailor Sdn. Bhd. v Nallapan [2005] 2 CLJ 167 CA
Muniandy a/l Thamba Kaundan & Anor v D & C Bank Bhd. & Anor [1996] 1 MLJ 374 FC
Subramaniam a/l NS Dhurai v Sandrakasan a/l Retnasamy & Ors [2005] 6 MLJ 120 CA
Liew Yoke Yin v AGS Harta Sdn. Bhd. [2006] 7 MLJ 49
Au Meng Nam v Ung Yak Chew [2007] 4 CLJ 526 CA
Lee Wai Fay & Anor v Lee Seng Ein [2005] 4 MLJ 701 CA – proof of fraud – beyond reasonable
doubt

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UDL3622 Land Law II Trimester 2, 2020/2021

Topic 2 Indefeasibility of Title and Interests

2.2 Exceptions

 Concept of indefeasibility under the NLC is not absolute.

 Exceptions: see the opening phrase of s 340(2).
 Statutory exceptions to indefeasibility: s 340(2), (3) & (4)
(a) fraud: s 340(2)(a)
(b) misrepresentation: s 340(2)(a)
(c) forgery: s 340(2)(b)
(d) void or insufficient instrument: s 340(2)(c)
(e) registration done exceeding power: s 340(2)(c)
(f) enforcement of s 340(4), including:
o claim in personam;
o powers of Registrar to correct errors under s 380 and power of the
court under s 417;
o enforcement of written law under s 4(2);
o enforcement of other written law to avoid or to nullify dealings under
NLC

 A defeasible title/interest is not an invalid title/interest. Nevertheless, it may be

liable to be set aside by a party who has locus to take the action to set it aside.
Until such action is taken, the title still remains with the registered person.

 Meaning of locus: Cheng Hang Guan & Ors v Perumahan Farlim (Penang) Sdn.
Bhd. & Ors [1993] 3 MLJ 352 at pp 377-379

2.2.1 Meaning of ‘shall not be indefeasible’ – s 340(2)

 Read Privy Council’s comment in Kesarmal & Anor v Valliapa Chettiar [1954]
MLJ 119 at 122, Mr. LMD de Silva of the Privy Council on the effect of s 42(ii)
FMS Land Code (Cap 138). This provision is now found in s 340 NLC.3
 Wong Yew Kwan v Wong Yu Ke & Anor [2009] 2 MLJ 672 (CA)

2.2.2 Fraud - s 340(2)(a)

(a) Definition of Fraud

 No definition of “fraud” in NLC. Assistance from case-laws:

o Assets Co v Mere Roihi [1905] AC 176 Privy Council by Lord Lindley

o Waimiha Sawmill Co v Wainone Timber Co [1926] AC 101 at 106-107 PC
3
See also Tan Chiw Too v Tee Kim Kuay [1997] 2 MLJ 221
Gazali bin Arifin v Ahmad bin Bakar [1992] 1 MLJ 282

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Topic 2 Indefeasibility of Title and Interests

o Tai Lee Finance v OA [1983] 1 MLJ 81 FC

o Loi Hieng Chiong v Kon Tek Shin [1983] 1 MLJ 31 FC
o Bagher Singh v Chanan Singh [1961] MLJ 328
o Perwira Habib Bank (M) Bhd. v Bank Bumiputra (M) Bhd. [1988] 3 MLJ 54
o Goh Hooi Yin v Lim Teong Ghee & Ors [1990] 3 MLJ 23 at 34
o Lai Soon Cheong v Kien Loong Housing Development Sdn. Bhd. & Anor
[1993] 2 CLJ 199 at 208
o Toh Kian Hin v Ting Ding Woi & Anor [1987] 1 MLJ 40
o Doshi v Yeoh Tiong Lay [1975] 1 MLJ 85
o Abu Bakar Ismail & Anor v Ismail Husin & Ors & Other Appeals [2007] 3
MLJ 97 CA

 2 headings of fraud:
fraud against a previous holder of a registered title or interest
o Doshi v Yeoh Tiong Lay [1975] 1 MLJ 85
o Datuk Jagindar Singh & Ors v Tara Rajaratnam [1983] 2 MLJ 196

fraud against the holder of an unregistered interest

o Loke Yew v Port Swettenham Rubber Co. Ltd. [1913] AC 491
o Ong Tin v The Seremban Motor Garage (1917) 1 FMSLR 308
o Tueh Guat Chooko v Cheah Ah Hoe & Anor [1932] MLJ 1094
o Tai Lee Finance Co. Sdn. Bhd. v Official Assignee & Ors [1983] 1 MLJ 81

 Proof of fraud – burden of proof

o Sinnaiyah & Sons Sdn Bhd. v Damai Setia Sdn. Bhd. [2015] 5 MLJ 1 FC
(current view) – balance of probabilities and not beyond reasonable doubt
o Ang Hiok Seng v Yim Yut Kiu [1997] 2 MLJ 45
o Chong Song @ Chong Sum & Anor v Uma Devi a/p Kandiah [2011] 2
MLJ 585 CA
cf
o Saminathan v Pappa [1981] 1 MLJ 121 PC – beyond reasonable doubt
o Yong Tim v Hoo Kok Chong & Anor [2005] 3 CLJ 229 FC
o Asean Security Mills Sdn. Bhd. v CGU Insurance Bhd. [2007] 2 MLJ 301
FC

 Pleading of fraud:
o Vijayaletchimy v Annamalai Chettiar [1990] 2 MLJ 492
o cf Ellamah d/o Ellapen v Renganathan s/o Komarasamy & Ors [1988] 3
MLJ 121

4
Other cases:
Ang Toon Chew & Sons (M) Sdn. Bhd. v PR of Mohamed Taib b. Yusoff [1998] 5 MLJ 481
Suratmin Othman v Yusof & Ors [1998] 2 CLJ Supp 380
Sekh Abu Bakar Ahmad lwn Sheikh Omar Sheikh Abdullah & Anor [1998] 3 CLJ 316
Abd Hamid bin Saad v Aliyasak Ismail [1998] 4 CLJ 429; [1999] 1 AMR 105

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Topic 2 Indefeasibility of Title and Interests

 Question of fact:
o JTV Denson (M) Sdn. Bhd. & Ors v Roxy (M) Sdn. Bhd. [1980] 2 MLJ
1395

 Occurence of fraud:
o Tai Lee Finance v OA [1983] 1 MLJ 81
o M. Ratnavale v S. Lourdenadin [1988] 2 MLJ 371, 3806

(b) Whether Mere Knowledge of Unregistered Claim/Interest Amounts to Fraud

 Meaning: Loke Yew v Port Swettenham Rubber Co. Ltd. [1913] AC 491 PC.

 Cases where knowledge of a prior unregistered interest was held to amount to

fraud:
o Haji Junus v Chik & Anor [1964] MLJ 343;
o Dan Sin Wah v Chan Hai Swee [1951] MLJ 189
o Mohd Isa v Haji Ibrahim [1970] 2 MLJ 165.

 Cases where knowledge of a prior unregistered interest was held not to amount to
fraud:
o Ong Tin & Anor v The Seremban Motor Garage (1917) 1 FMSLR 308
o Tueh Guat Choo v Cheah Ah Hoe & Anor [1932] MLJ 109

 Other cases:
o Chu Choon Moi v Ngan Siew Tin [1980] 1 MLJ 34 SC
o OCBC Ltd. v Lee Tan Hwa & Anor [1989] 1 MLJ 261
o Francis a/l Singarayan v Pusparaju a/l Solay & 2 Ors [1994] 4 CLJ 357
o Borneo Housing Mortgage Finance Bhd v Time Engineering Ltd [1996] 2
MLJ 12
o OCBC Bank (M) Bhd. v Lee Lee Fah & Ors and Another appeal [2000] 1
MLJ 134
o Adorna Properties Sdn. Bhd. v Boonsom Boonyanit @ Sun Yok Eng
[2001] 1 MLJ 134
o Koh Thong Chuan v The Official Assignee of the property of Koh Liang
Hee [2003] 1 MLJ 113

5
Examples:
Haji Aishah v Yah binti Taib (1949) 15 MLJ 128
Haji Junus v Chik & Anor (1964) 30 MLJ 343
Mohamed Isa v Haji Ibrahim [1968] 1 MLJ 186
Ong Tin v The Seremban Motor Garage (1917) 1 FMSLR 308
Public Finance Bhd. v Narayanasamy [1971] 2 MLJ 32 FC
cf Tai Lee Finance Co Sdn. Bhd. v Official Assignee & Ors [1983] 1 MLJ 81, 85 [preferred view]
6
See also:
Borneo Housing Mortgage Finance Bhd. v Time Engineering Bhd. [1996] 2 MLJ 12 FC
Pekan Nenas Industries Sdn. Bhd. v Chang Chin Chuen & Ors [1998] 1 MLJ 465

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Topic 2 Indefeasibility of Title and Interests

o Cheam Yah Kiam v Abdul Malek Zakaria & Anor Case [2005] 1 CLJ 537
o Abu Bakar Ismail & Anor v Ismail Husin & Ors & Other Appeals [2007] 3
CLJ 97
o Majlis Agama Islam Negeri Pulau Pinang v Zaitun bt Ramli [2008] 6 MLJ
664; [2009] 1 CLJ 38 CA
o Rabiah Lip & Ors v Bukit Lenang Development Sdn. Bhd. [2008] 3 CLJ
692 CA
o Puspavathy Thaveethu v Majlis Perbandaran Klang & Ors and Other
Appeals [2008] 6 CLJ 626 CA
o Teh Cheng Choo v Malayan Banking Bhd. [2009] 5 CLJ 463 CA
o Wong Yew Kwan v Wong Yew Ke [2010] 2 CLJ 703 CA
o Jit Singh a/l Kishen Singh v Bakshi Singh a/l Kishen Singh & Anor [2010]
7 MLJ 149
o Veeraie a/p Perumal (wakil bagi Arumugam a/l Kulandaivelu, simati) lwn
Chai Kon Chon dan lain-lain [2010] 9 MLJ 70
o Mohd Nasir bin Moidu v Lee Swee Kim [2011] 7 MLJ 606
o Kamarulzaman Omar & Ors v Yakub Husin & Ors [2014] 2 MLJ 768 FC
o Bumiputra Commerce Bank Bhd. v Augusto Pompeo Romei & Anor
[2014] 6 CLJ 17; [2014] 3 MLJ 672 CA
o Wong Wee Kheong v Daya Bersama Sdn. Bhd. [2013] 3 MLJ 313, [2013]
3 CLJ 969, [2013] 3 AMR 93 FC
o Low Huat Cheng v Rozdenil Toni & Anor [2016] 5 MLJ 141 FC
o Yeo Ping Tieng & Ors v Elitrop Sdn. Bhd. [2020] 3 MLJ 269, [2019] 1
LNS 1832 FC

2.2.3 Misrepresentation – s 340(2)(a)

 No definition in the NLC. See case laws:
o Wong Wee Kheong v Daya Bersama Sdn. Bhd. [2013] 3 MLJ 313, [2013]
3 CLJ 969, [2013] 3 AMR 93 FC
o Loke Yew v Port Swettenham Rubber Co. Ltd. [1913] AC 491 PC and
Datuk Jagindar Singh & Ors v Tara Rajaratnam [1983] 2 MLJ 196 FC;
[1986] 1 MLJ 105 PC – “fraudulent misrepresentation” and is a specie of
fraud.7

 Loke Yew v. Port Swettenham Rubber Co. Ltd. [1913] AC 491, at 503-4 PC
cf
 Datuk Jaginder Singh & Ors v. Tara Rajaretnam [1983] 2 MLJ 196, 201-2 SC
per Lee Hun Hoe CJ – ‘or’ – disjunctive

 Issue: whether the term “misrepresentation” includes “innocent

misrepresentation”?

7
Other cases:
Jumari bin Salleh v Mohd Kasumens bin Doman [1998] 1 AMR 421
OCBC Bank (M) Bhd. v Pendaftar Hakmilik Negeri Johor [1999] 2 MLJ 511

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Topic 2 Indefeasibility of Title and Interests

 See also Contracts Act 1950 – fraudulent misrepresentation – s 17 &

misrepresentation – s 18

 Other cases:
o Annamalai a/l Muthu v Nagappa a/l Muthu [2002] 4 MLJ 225
o Ismail bin Mohmad & Anor v Ismail bin Husin & Ors [2005] 7 MLJ 103

2.2.4 Forgery - s 340(2)(b)

 Cross refer to ss 210 and 211 NLC
 Read:
o Ong Lian v Tan Eng Jin [1917] FMLSR 325.
o Chiew Lip Seng v Perwira Habib Bank (M) Bhd. [1999] 1 MLJ 310
o OCBC Bank (M) Bhd. v Pendaftar Hakmilik Negeri Johor Darul Takzim
[1999] 2 MLJ 511 CA

 Burden of proof:
o EON Bank Bhd. v Hotel Flamingo and Another Case [2005] 1 MLJ 712
cf
o HC in Boonsom Boonyanit case (FC and CA)

 Main issue: forgery and transfer to a bona fide purchaser for value.
 Boonsom Boonyanit v Adorna Properties Sdn. Bhd. [1995] 2 MLJ 863 HC; [1997]
2 MLJ 62 CA; [2001] 1 MLJ 241 FC8 – allowed the transfer to stand in the case
of bona fide purchaser for value.

 Other cases:
o Low Huat Cheng & Anor v Rozdenil bin Toni and another appeal [2016] 5
MLJ 141 FC
o Seek Lai Neo & Anor v Cheng Chuan Development Sdn. Bhd. & 2 Ors
[1994] 4 CLJ 892
o Elizabeth Chiew Yee Fung & Ors v Leong Fook Ngen & Ors [2001] 6
MLJ 403
o State Tailor Sdn. Bhd. v Nallapan [2005] 2 CLJ 167
o Liew Yok Yin v AGS Harta Sdn. Bhd. [2006] 3 CLJ 787
o Au Meng Nam & Anor v Ung Yak Chew & Ors [2007] 4 CLJ 526
o Engtex Marketing Sdn. Bhd. v Zinma Housing Development Sdn. Bhd. &
Anor [2009] 5 CLJ 759

8
Other cases:
Ong Lock Cho v Quek Shin & Sons Ltd (1941) MLJ 88
Lim Pang Geok v Sockalingam Chetty (1907) Innes 90
Quah Hang Lian Neo v Seow Teong Teck (1936) MLJ 203
Ong Lian v Tan Eng Jin (1917) 1 FMSLR 325

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Topic 2 Indefeasibility of Title and Interests

o AGS Harta Sdn. Bhd. v Liew Yok Yin [2010] 7 CLJ 142
o Tiagaraja a/l Palaniandy (as the administrator for the estate of
Palaniandy a/l Pichay Karan, deceased) v Moganadas a/l Maniam (as the
personal representative of Maniam a/l Kathan, deceased) & Anor [2011]
7 MLJ 326
o Overseas Realty Sdn. Bhd. Wong Yau Chong [2014] 8 CLJ 107

2.2.5 Void or Insufficient Instrument – s 340(2)(b)

 Definition
 Mohamed Jamal bin Inche Im Salleh v Ernest Cheong Yong Yin [2004] 3 MLJ
131
 Appoo s/o Krishnan v Ellamah d/o Ramasamy [1974] 2 MLJ 201 – “insufficient
and void”
 Puran Singh v Kehar Singh & Anor [1939] MLJ Rep 71 – ‘insufficient’ or ‘void’
 Mook Meng Sun v Lo Aa Kau [2002] 2 MLJ 193

 Issue: whether the words ‘insufficient’ and ‘void’ should be read conjunctively or
disjunctively?

Examples:
(a) Contracts With or By Infants
 Tan Hee Juan v Teh Boon Keat [1934] MLJ 96

(b) Invalid Power of Attorney

 Puran Singh v Kehar Singh & Anor [1939] MLJ Rep 719

(c) Dealings in Contravention of a Restriction in Interest

 Wong Kim Poh v Sa’amah bte Hj Kasim [1987] 1 MLJ 400
 UMBC v Syarikat Perumahan Luas Sdn. Bhd. (No 2) [1988] 3 MLJ 352
 Toh Huat Khay v Lim A Chang (in this capacity as the executor of the estate of
Toh Hoy Khay, decd.) [2010] 4 MLJ 312 FC

(d) Moneylending Transactions which are Void or Unenforceable

 Appoo s/o Krishnan v Ellamah d/o Ramasamy [1974] 2 MLJ 201
 M & J Frozen Food Sdn. Bhd. v Siland Sdn. Bhd. [1994] 1 MLJ 294
 Halimah v Haji Mohamed Din [1940] FMSLR 317, 318
 Tan Chiw Thoo v Tee Kim Khay [1997] 2 MLJ 221 FC
 Chiew Lip Seng v Perwira Habib Bank (M) Bhd. [1999] 1 MLJ 310
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See other cases:
Seah Siang Mong v Ong Ban Chai & Anor Case [1998] 1 CLJ Supp 295
Bank Islam (M) Bhd. v Ainin bte Abdullah & Anor [1998] 4 MLJ 132
Jamaliah bte Hj. Mahsudi v Sivam a/l Munusamy & Anor [1995] 5 MLJ 250 – transfer under invalid
power of attorney because the donor died before the date of power of attorney.

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Topic 2 Indefeasibility of Title and Interests

 Siaw Kim Seong v Siew Swee Yin & Anor [2008] 5 CLJ 441 CA

(e) Issuing of duplicate title under Mistake

 Uptown Properties Sdn. Bhd. v Pentadbir Tanah Wilayah Persekutuan & Ors
[2012] 8 MLJ 713

(f) Fake land title

 Pendaftar Hakmilik, Pejabat Tanah dan Galian Negeri Selangor v Bank
Pertanian Malaysia Bhd. [2016] 2 MLJ 543 CA
 Tan Yin Hong v Tan Sian San & Ors [2010] 2 MLJ 1 FC
 Uptown Properties Sdn. Bhd. V Pentadbir Tanah Wilayah Persekutuan & Ors
[2012] 8 MLJ 713, [2012] 3 CLJ 271, [2012] 2 AMR 653
 Samuel Naik Siang Ting v Public Bank Berhad [2015] 6 MLJ 1 FC

2.2.6 Unlawful Acquisition by Purported Exercise of Power or Authority – s 340(2)(c)

 UMBC v Syarikat Perumahan Luas Sdn. Bhd. (No 2) [1988] 3 MLJ 352
 Woon Kim Poh v Sa’amah bte Hj Kasim [1987] 1 MLJ 400
 Khaw Poh Chuan v Ng Gaik Peng & Ors [1996] 1 MLJ 761
 M&J Frozen Food Sdn. Bhd. v Siland Sdn. Bhd. & Anor [1994] 1 MLJ 294
 Development & Commercial Bank Bhd., Johore Bahru v Kim Ming Choon [1991]
2 MLJ 246
 Teh Bee v Maruthamuthu [1977] 2 MLJ 7

2.2.7 Other Statutory Exceptions

(a) Power of Registrar to Correct Errors – s 380

 s 380(1) – whose errors
 Island and Peninsular Development Bhd. & Anor v Legal Adviser, Kedah [1973]
2 MLJ 69 – solicitor’s mistake excluded
 Mohammad bin Buyong v Pemungut Hasil Tanah Gombak & Ors [1982] 2 MLJ
53
 See also Salleh Abas FJ’s observation in Hassan bin Seman & Ors v Jusoh bin
Awang Chik [1982] 1 MLJ 66 at 67 FC – indefeasibility and correction of error
are two independent provisions existing side by side. Each has its own sphere and
scope of operation.
 Kuah Chiew Ann v Pendaftar Hakmilik Tanah Wilayah Persekutuan [2006] 6
MLJ 127 HC
 Malaysian Building Society Bhd. V KCSB Konsortium Sdn. Bhd. [2017] 2 MLJ
557

(b) Power of Court under s 417

 s 417(1)

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Topic 2 Indefeasibility of Title and Interests

 Sungai Biak Tin Mines Ltd v Saw Choo Theng & Anor [1970] 2 MLJ 226
 Hassan bin Seman & Ors v Jusoh bin Awang Chik [1982] 1 MLJ 66
 Oh Hiam & Ors v Tham Kong [1980] 2 MLJ 159 PC
 Sungai Biak Tin Mines Ltd v Saw Choo Teng (No 2) [1970] 2 MLJ 226 FC
 Ong Chat Pang v Valliappa Chettiar [1971] 1 MLJ 224 FC
 T Damodaran v Chao Kuan Him [1979] 2 MLJ 267 PC 10

 ss 417, 418
 Woon Kim Poh v Sa’amah bte Haji Kasim [1987] 1 MLJ 400
 Ismail bin Mohamad v Haji Yahya & Sons [1988] 2 MLJ 185

(c) “… By Operation of Law …”

- s 340(4)(a)
Examples:
 State Authority’s power of forfeiture under s 100 and s 129
 Lessor’s forfeiture power under s 234
 Chargee’s power of sale under s 253
 Land dealing avoid or prevented by any other written law such as Companies Act
195 (Act 125), Bankruptcy Act 1967 (Act 360) and Moneylenders Act 1951 (Act
400).

- s 340(4)(b)
 Ong Chat Pang & Anor v Valliappa Chettiar [1971] 1 MLJ 224 FC, Gill FCJ
 Krishnadas a/l Achutan Nair & Ors v Maniyam a/l Samykano [1997] 1 MLJ 94
(FC), Gopal Sri Ram CAJ
cf
 view by Sihombing at p 830 and David Wong at p 373-374,
 Krishnadas & Ors v Maniyam [1993] 3 MLJ 465 at 473 HC, per Peh Swee Chin J

 s 340(4)(b) “nothing shall prejudice or prevent the determination of any title or

interest by operation of law.”
 Ong Chat Pang v. Valiappa Chettiar [1971] 1 MLJ 224, 232 FC per Gill FJ
 Krishnan v Maniyam HC & SC decisions
 Tan Sin Thew @ Tan Poh Eng v Rintas Sdn. Bhd. [1994] 4 CLJ 331
 Official Assignee of the estate of Koh Liang Hee (a bankrupt) v Koh Thong Chuan
& Anor [1997] 5 MLJ 136
 Mohamed Moidu bin Mohamed & Anor v Hassan bin Kadir & Ors [2011] 4 MLJ
190 CA
 Takako Sakao (f) v Ng Pek Yeun (f) [2009] 6 MLJ 751 FC

10
References:
1. Teo & Khaw Chapter 10
2. Sihombing Chapter 31
3. Teo KS, “Powers of the Court under the Malaysian Torrens System” [1989] 2 MLJ xxxix

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Topic 2 Indefeasibility of Title and Interests

2.2.8 Claim in Personam

 Oh Hiam v Tham Kong [1980] 2 MLJ 159 (PC) at 164 per Lord Russell of
Killowen
 Read also Gopal Sri Ram CAJ’s opinion in Krishnadas a/l Achutan Nair & Ors v
Maniyam a/l Samykano [1997] 1 MLJ 94 (FC)
 See also Luggage Distributors (M) Sdn. Bhd. v Tan Hor Teng & Anor [1995] 1
MLJ 719 (CA) on Gopal Sri Ram CAJ’s view at p 75811
 Article: Richard Wu “Implementation of Land Title Registration System in
Malaysia: Lessons for Hong Kong” [2011] 1 MLJ lxvi

2.3 Operation of Other Statutes

 s 340 & s 4(2) NLC

2.3.1 Enforcement of written law under s 4(2) NLC

2.3.2 Enforcement of other written law to prevent or to nullify the dealing under the
NLC
 Krishnadas a/l Achutan Nair & Ors v Maniyam a/l Samykano [1997] 1 MLJ 94
(FC) at 200 per Gopal Sri Ram CAJ12

Examples:
 an unregistered charge of company land with the ROC under s 108 Companies
Act 1965;
 security transaction in contrary to Moneylenders Act 1951.

11
See other cases:
Bachan Singh v Mahinder Kaur & Ors [1956] MLJ 987
Lian Keow Sdn. Bhd. (in liquidation) & Anor v Overseas Credit Finance (M) Bhd. & Ors [1988] 2
MLJ 449
Templeton & Ors v Low Yat Holdings & Anor [1993] 1 MLJ 443
Cheng Hang Guan & Ors v Perumahan Farlim (Penang) Sdn. Bhd. & Ors [1993] 3 MLJ 352
Yong Tong Hong v Siew Soon Wah & Ors [1971] 2 MLJ 105 (FC); [1973] 1 MLJ 133 PC
Abd Hamid Saad v Aliyasak Ismail [1998] 4 CLJ 431; [1999] 1 AMR 105
12
See also cases:
Abirami Ammal & Ors v MSMM Meyapa Chettiar [1959] MLJ 149
Overseas Union Finance Ltd v Lim Joo Chong [1971] 2 MLJ 124
Phuman Singh v Kho Kwang Choon [1965] 2 MLJ 189
Associated Finance Corporation Ltd. v Poomani [1972] 1 MLJ 117

Prepared by Tay Eng Siang & Amir Nur Ikhwan Bin Amernudin, FOL, MMU 10
UDL3622 Land Law II Trimester 2, 2020/2021

Topic 2 Indefeasibility of Title and Interests

2.4 Position of Subsequent Purchaser Taking Defeasible Title/Interest

 s 340(3)(a)&(b)
 Doshi v Yeoh Tiong Lay; Datuk Jaginder Singh v Tara Rajaratnam

 Refer to s 340(3)(b) and compared with:

 Owe Then Kooi v Au Thiam Seng [1990] 1 MLJ 23413
 Lee Kin Sin v Pegawai Pentadbir Pusaka, Malaysia [1992] 3 CLJ 1701

 Read the following cases:

o Boonsom Boonyanit v Adorna Properties Sdn. Bhd. [1997] 2 MLJ 62 –
CA
o Also the High Court decision (1995) and Federal Court decision (2001)
o Pekan Nenas Industries Sdn. Bhd. v Chong Ching Chuen [1998] 1 MLJ
465
o Ong Ban Chai & Ors v Seah Siang Mong [1998] 3 MLJ 346
o OCBC Bank (M) Bhd. v Pendaftar Hakmilik Negeri Johor Darul Takzim
[1999] 2 MLJ 511 CA – title obtained by fraud, the title is defeasible.
o Au Meng Nam & Anor v Ung Yak Chew & Ors [2007] 5 MLJ 136 CA
o Tan Ying Hong v Tan Sian San & Ors [2010] 2 MLJ 1 FC
o Toh Huat Khay v Lim A Chang [2008] 2 CLJ 718 CA
o AmFinance Bhd. v Lebik bt Hj Ali & Ors [2008] 6 MLJ 589
o Engtex Marketing Sdn. Bhd. v Zinma Housing Development Sdn. Bhd. &
Anor [2009] 5 CLJ 759
o Ahmad Md Daud & Anor v Che Yah Man [2009] 6 CLJ 530 CA
o Rajamani a/p Meyappa Chettiar v Eng Beng Development Sdn. Bhd. &Ors
[2016] 3MLJ 660 CA
o Tan Ong Ban v Teoh Kim Heng [2016] 3 MLJ 23 FC
o T Sivam a/l Tharamalingam v Public Bank Berhad [2018] 5 MLJ 711
o Liputan Simfon Sdn. Bhd. V Pembangnan Orkid Desa Sdn. Bhd. [[2019] 4
MLJ 141 FC, 2018] 3 MLJ 386 CA
o Pushpaleela Selvaraja v Rajamani [2019] 2 MLJ 553, [2019] 3 CLJ 441
FC

2.5 Effect of Non-registration

 Haji Abdul Rahman v Mahomed Hassan [1917] AC 209 at 214-215

2.5.1 Rights under Agreements – s 206(3)

 s 206(3)
13
[Note: on appeal, the SC overturned the decision of HC and granted an order for sale. But no written
judgment was given.]

Prepared by Tay Eng Siang & Amir Nur Ikhwan Bin Amernudin, FOL, MMU 11
UDL3622 Land Law II Trimester 2, 2020/2021

Topic 2 Indefeasibility of Title and Interests

 Inter-Continental Mining Sdn. Bhd. v Societe des Etains de Bayas Tudjuh [1974]
1 MLJ 145 FC

Prepared by Tay Eng Siang & Amir Nur Ikhwan Bin Amernudin, FOL, MMU 12