MALAYAN BANKING BERHAD 1. ) Mohd Affandi Bin Ahmad 2. ) Aminah Binti Ahmad

MALAYAN BANKING BERHAD 1. ) Mohd Affandi Bin Ahmad 2. ) Aminah Binti Ahmad

Court affirmed High Court: SPAs between deceased and vendor were valid and vendor holds Lots 97 and 716 on constructive trust for the estate; the 2nd Defendant was an immediate purchaser from the same vendor (competing equitable/beneficial interest) and not a protected subsequent purchaser under deferred indefeasibility; the Bank failed to prove bona fide purchaser for value because it did not perform adequate due diligence (no proof of payment by 2nd Defendant, no valuation/site verification), therefore its registered charges are defeasible and set aside.

Citation
J-02(NCvC)(W)-452-03/2022 (Mahkamah Rayuan)
Parties
Appellant (3rd Defendant Bank): Malayan Banking Berhad; Appellant (2nd Defendant): Q Development Sdn. Bhd.; Respondent (plaintiff Co Administrator/beneficiary): Mohd Affandi Bin Ahmad; Respondent (plaintiff Co Administrator/beneficiary): Aminah Bt Ahmad; 1st Defendant (vendor): Pembangunan Tanah Dan Perumahan Sdn. Bhd.
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
25 September 2023
Case Number
J-02(NCvC)(W)-452-03/2022 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (court of Appeal) / Judgment on Appeals Against High Court Decision Affirming Trial Outcome
Outcome
Appeals dismissed; High Court judgment affirmed.
Legal Topics
Deferred Indefeasibility, Constructive Trust, Bona Fide Purchaser for Value, Estoppel, Due Diligence in Financing
Source Language
Malay/English
Property Law Land Registration Equity and Trusts Banking Law Deferred Indefeasibility Constructive Trust Bona Fide Purchaser for Value Estoppel +1 more

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Parties

Malayan Banking Berhad

Appellant (3rd Defendant Bank)

Q Development Sdn. Bhd.

Appellant (2nd Defendant)

Mohd Affandi Bin Ahmad

Respondent (plaintiff Co Administrator/beneficiary)

Aminah Bt Ahmad

Respondent (plaintiff Co Administrator/beneficiary)

Pembangunan Tanah Dan Perumahan Sdn. Bhd.

1st Defendant (vendor)

Procedural Posture

Civil Appeal (court of Appeal) / Judgment on Appeals Against High Court Decision Affirming Trial Outcome

Legal Issues

  1. 1 Whether SPAs between deceased and vendor bound the vendor
  2. 2 Whether the 2nd purchaser was a subsequent purchaser entitled to deferred indefeasibility under s.340(3) NLC
  3. 3 Whether the bank as chargee derived a protected interest as a further subsequent purchaser/chargee

Ratio Decidendi

Court affirmed High Court: SPAs between deceased and vendor were valid and vendor holds Lots 97 and 716 on constructive trust for the estate; the 2nd Defendant was an immediate purchaser from the same vendor (competing equitable/beneficial interest) and not a protected subsequent purchaser under deferred indefeasibility; the Bank failed to prove bona fide purchaser for value because it did not perform adequate due diligence (no proof of payment by 2nd Defendant, no valuation/site verification), therefore its registered charges are defeasible and set aside.

Court Disposition

Appeals dismissed; High Court judgment affirmed.

Orders

  • Appeal No. J-02(NCvC)(W)-549-03/2022 (Q Development) dismissed with costs
  • Appeal No. J-02(NCvC)(W)-452-03/2022 (Malayan Banking Berhad) dismissed with costs