Pertubuhan Keselamatan Sosial (PERKESO) LANGKASUKA LAND SDN BHD

Pertubuhan Keselamatan Sosial (PERKESO) LANGKASUKA LAND SDN BHD

The Court allowed both applications: Defendant failed to discharge the burden of proving a 'cause to the contrary' under s256(3) NLC; service of Form 16D by prepaid registered post to the address in the charge satisfied statutory requirements and the s431(2) presumption; economic hardship and speculative funding proposals do not negate the chargee's statutory right to an Order for Sale; accordingly Order for Sale granted with specified sale terms and costs.

Citation
KA-24FC-10-02/2025 (Mahkamah Tinggi)
Parties
Plaintiff/chargee: PERTUBUHAN KESELAMATAN SOSIAL (PERKESO); Defendant/chargor: Langkasuka Land Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
4 August 2025
Case Number
KA-24FC-10-02/2025 (Mahkamah Tinggi)
Procedural Posture
Foreclosure (originating Summons Under Sections 256 and 257, National Land Code) / Judgment (grounds of Judgment)
Outcome
Applications allowed; Order for Sale granted in both suits
Legal Topics
Foreclosure, Charge Over Land, Service of Statutory Notice (form 16 D), Order for Sale, Cause to the Contrary Under Section 256(3) NLC, Presumption of Service
Source Language
Malay/English
Land Law Contract Law Equity Civil Procedure Foreclosure Charge Over Land Service of Statutory Notice (form 16 D) Order for Sale +2 more

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Parties

PERTUBUHAN KESELAMATAN SOSIAL (PERKESO)

Plaintiff/chargee

Langkasuka Land Sdn Bhd

Defendant/chargor

Procedural Posture

Foreclosure (originating Summons Under Sections 256 and 257, National Land Code) / Judgment (grounds of Judgment)

Legal Issues

  1. 1 Whether the Plaintiff is entitled to an Order for Sale under Sections 256 and 257 NLC
  2. 2 Whether statutory notice (Form 16D) was properly served in compliance with Section 254 NLC and s431(2) presumption of service
  3. 3 Whether the Defendant has established a 'cause to the contrary' under Section 256(3) NLC (conditions precedent, defeasibility of charge, or equity)

Ratio Decidendi

The Court allowed both applications: Defendant failed to discharge the burden of proving a 'cause to the contrary' under s256(3) NLC; service of Form 16D by prepaid registered post to the address in the charge satisfied statutory requirements and the s431(2) presumption; economic hardship and speculative funding proposals do not negate the chargee's statutory right to an Order for Sale; accordingly Order for Sale granted with specified sale terms and costs.

Court Disposition

Applications allowed; Order for Sale granted in both suits

Orders

  • Leave granted to obtain an Order for Sale in respect of the Charged Properties.
  • Defendant/Chargor to deliver vacant possession within fourteen (14) days from date of public auction.