Top ATC Industries Sdn Bhd Cheok Lam Chuan

Top ATC Industries Sdn Bhd Cheok Lam Chuan

D5 and D6 were subsequent purchasers but failed to discharge the burden of proving they were bona fide purchasers for valuable consideration given the highly suspicious timing of transfers, absence of credible proof of payment and inadequate due diligence; therefore they are deprived of the shield of indefeasibility under the proviso to s.340(3) NLC. The High Court orders restoring title to the Plaintiff are affirmed except the award of aggravated damages, which was set aside for lack of pleading.

Citation
N-01(NCvC)(W)-56-02/2023 (Mahkamah Rayuan)
Parties
Respondent / Plaintiff: Cheok Lam Chuan; Appellant (5th Defendant): TOP ATC Industries Sdn Bhd; Appellant (6th Defendant): Lee Kok Chian; 1st Defendant: Fu Zhi Mao Group Sdn. Bhd.; 2nd Defendant: Thana Balan A/L Rajamanickam; 3rd Defendant: Abdullah Zubair Chan bin Abdullah; 4th Defendant: Theselim Begam bin Mohd Yusoff; 7th Defendant (registrar of Titles): Pendaftar Hakmilik Negeri Sembilan; 8th Defendant (director of Lands and Mines): Pengarah Tanah dan Galian Negeri Sembilan
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
29 July 2025
Case Number
N-01(NCvC)(W)-56-02/2023 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (property/land) / Court of Appeal Judgment on Appeals From High Court Trial Decision
Outcome
Appeals dismissed except insofar as aggravated damages are set aside; High Court judgment affirmed in all other respects
Legal Topics
Indefeasibility of Title, Bona Fide Purchaser for Value, National Land Code S340, Fraudulent Transfer, Conveyancing Practice, Aggravated Damages, Registrar/land Office Negligence
Source Language
Malay/English
Property Law Land Law Civil Procedure Equity and Trusts Fraud Indefeasibility of Title Bona Fide Purchaser for Value National Land Code S340 +4 more

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Parties

Cheok Lam Chuan

Respondent / Plaintiff

TOP ATC Industries Sdn Bhd

Appellant (5th Defendant)

Lee Kok Chian

Appellant (6th Defendant)

Fu Zhi Mao Group Sdn. Bhd.

1st Defendant

Thana Balan A/L Rajamanickam

2nd Defendant

Abdullah Zubair Chan bin Abdullah

3rd Defendant

Theselim Begam bin Mohd Yusoff

4th Defendant

Pendaftar Hakmilik Negeri Sembilan

7th Defendant (registrar of Titles)

Pengarah Tanah dan Galian Negeri Sembilan

8th Defendant (director of Lands and Mines)

Procedural Posture

Civil Appeal (property/land) / Court of Appeal Judgment on Appeals From High Court Trial Decision

Legal Issues

  1. 1 Whether the appellants (D5 and D6) were bona fide purchasers for valuable consideration
  2. 2 Whether D5 and D6 obtained indefeasible title under the proviso to s.340(3) of the National Land Code given antecedent fraud
  3. 3 Whether D5 was an immediate purchaser or a subsequent purchaser

Ratio Decidendi

D5 and D6 were subsequent purchasers but failed to discharge the burden of proving they were bona fide purchasers for valuable consideration given the highly suspicious timing of transfers, absence of credible proof of payment and inadequate due diligence; therefore they are deprived of the shield of indefeasibility under the proviso to s.340(3) NLC. The High Court orders restoring title to the Plaintiff are affirmed except the award of aggravated damages, which was set aside for lack of pleading.

Court Disposition

Appeals dismissed except insofar as aggravated damages are set aside; High Court judgment affirmed in all other respects

Orders

  • High Court order dated 10 January 2023 affirmed except the order awarding aggravated damages to the Plaintiff which is set aside
  • Registration of the subject title and consequential orders of the High Court (cancellation of D6 registration and re-transfer of title to the Plaintiff by D7/D8; negligence findings as to D7/D8) are affirmed