CIMB ISLAMIC TRUSTEE BERHAD 1. PENDAFTAR HAKMILIK NEGERI SELANGOR 2. PEGARAH TANAH DAN GALIAN NEGERI SELANGOR 3. HOO CHIA CHOON 4. HOO MOOI HWA 5. HONG LEONG BANK BERHAD

CIMB ISLAMIC TRUSTEE BERHAD 1. PENDAFTAR HAKMILIK NEGERI SELANGOR 2. PEGARAH TANAH DAN GALIAN NEGERI SELANGOR 3. HOO CHIA CHOON 4. HOO MOOI HWA 5. HONG LEONG BANK BERHAD

Court held 1st and 2nd respondents breached mandatory duties under the Fourteenth Schedule when converting the manual title into the computerised register because the computerised title did not mirror the manual title; that breach rendered the computerised titles (HSD 40222/HSD 77602) void ab initio; section 22 NLC immunity did not apply because acts were not in good faith; PAPA limitation did not bar relief for ultra vires acts; consequently the 3rd respondent's registration and the bank's charge, derived from a void title, are invalid and the appellant's claim for rectification and declaration of ownership succeeds.

Citation
B-01(NCVC)(W)-67-02/2018 (Mahkamah Rayuan)
Parties
Appellant (administrator of the Estate of Hussein Bin Noor): CIMB ISLAMIC TRUSTEE BERHAD; 1st Respondent (registrar of Land Titles of Selangor): Pendaftar Hakmilik Negeri Selangor; 2nd Respondent (director of Land and Mines, Selangor): Pengarah Tanah dan Galian Negeri Selangor; 3rd Respondent (registered Proprietor): Hoo Chia Choon; 4th Respondent (executor/trustee for Estate of Hoo Hwang Boon): Hoo Mooi Hwa; 5th Respondent (chargee / Lender): Hong Leong Bank Berhad
Court
NCVC
Jurisdiction
Malaysia
Judgment Date
1 January 1900
Case Number
B-01(NCVC)(W)-67-02/2018 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal From High Court (shah Alam) / Court of Appeal Judgment (appeal Allowed)
Outcome
Appeal allowed; High Court judgment reversed in part; appellant's claim allowed; 3rd respondent's counterclaim dismissed
Legal Topics
Indefeasibility of Title, Computerised Land Registration System (sptb) Conversion, Breach of Statutory Duty, Section 22 NLC Immunity, Limitation / PAPA, Deferred Indefeasibility, Validity of Replacement Title and Charge
Source Language
Malay/English
Land Law Property Law Administrative Law Equity Civil Procedure Indefeasibility of Title Computerised Land Registration System (sptb) Conversion Breach of Statutory Duty +4 more

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Parties

CIMB ISLAMIC TRUSTEE BERHAD

Appellant (administrator of the Estate of Hussein Bin Noor)

Pendaftar Hakmilik Negeri Selangor

1st Respondent (registrar of Land Titles of Selangor)

Pengarah Tanah dan Galian Negeri Selangor

2nd Respondent (director of Land and Mines, Selangor)

Hoo Chia Choon

3rd Respondent (registered Proprietor)

Hoo Mooi Hwa

4th Respondent (executor/trustee for Estate of Hoo Hwang Boon)

Hong Leong Bank Berhad

5th Respondent (chargee / Lender)

Procedural Posture

Civil Appeal From High Court (shah Alam) / Court of Appeal Judgment (appeal Allowed)

Legal Issues

  1. 1 Whether appellant's claim was time barred by PAPA or Limitation Act
  2. 2 Whether 1st and 2nd respondents breached statutory duty in converting manual title to computerised title in breach of Fourteenth Schedule
  3. 3 Whether 1st and 2nd respondents are protected by section 22 NLC for acts done in exercise of duty

Ratio Decidendi

Court held 1st and 2nd respondents breached mandatory duties under the Fourteenth Schedule when converting the manual title into the computerised register because the computerised title did not mirror the manual title; that breach rendered the computerised titles (HSD 40222/HSD 77602) void ab initio; section 22 NLC immunity did not apply because acts were not in good faith; PAPA limitation did not bar relief for ultra vires acts; consequently the 3rd respondent's registration and the bank's charge, derived from a void title, are invalid and the appellant's claim for rectification and declaration of ownership succeeds.

Court Disposition

Appeal allowed; High Court judgment reversed in part; appellant's claim allowed; 3rd respondent's counterclaim dismissed

Orders

  • High Court order set aside
  • Declaratory reliefs in terms of prayers (a) to (h) of paragraph 40 of the statement of claim granted (rectify register, annul/expunge wrongful computerised titles and transfers, declare Hussein lawful owner)