WONG ING TONG 1. YAP PIAT ENG @ YAP LIEN ENG 2. HOYEN ENTERPRISES SDN BHD

WONG ING TONG 1. YAP PIAT ENG @ YAP LIEN ENG 2. HOYEN ENTERPRISES SDN BHD

On the evidence the plaintiffs did not execute or authorize the disputed documents and expert and witness testimony established forgery; registration obtained by forgery makes the immediate purchaser's title defeasible under NLC s340(2)(b); Maybank had actual notice of the plaintiffs' caveats and failed to make reasonable inquiries, thus did not acquire its charge in good faith under NLC s340(3); accordingly transfers and charges were set aside and damages awarded against the solicitor who procured the documents.

Citation
W-01(NCVC)(W)-104-02/2020 (Mahkamah Rayuan)
Parties
Plaintiff/appellant: Yap Piat Eng @ Yap Lien Eng; Plaintiff/appellant: Hoyen Enterprises Sdn Bhd; Defendant/appellant / Immediate Purchaser: Wong Ing Tong; 1st Defendant / Solicitor (sheng Lee Law Office): Yap Kok Sheng; 6th Defendant / Appellant (bank): Malayan Banking Berhad; 7th Defendant / Intended Purchaser: Cheah Teow Meng; 5th Defendant / Land Registrar: Pengarah Tanah dan Galian Selangor
Court
NCVC
Jurisdiction
Malaysia
Judgment Date
9 November 2021
Case Number
W-01(NCVC)(W)-104-02/2020 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal / Judgment of the Court of Appeal Affirming High Court Decision
Outcome
Appeals dismissed; High Court judgment affirmed in all material respects.
Legal Topics
National Land Code S340, Forgery, Caveat, Indefeasibility of Title, Bona Fide Purchaser, Professional Negligence of Solicitors, Breach of Statutory Duty, Damages
Source Language
Malay/English
Property Law Land Registration Law Contract Tort Negligence Civil Fraud Equity National Land Code S340 Forgery +6 more

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Parties

Yap Piat Eng @ Yap Lien Eng

Plaintiff/appellant

Hoyen Enterprises Sdn Bhd

Plaintiff/appellant

Wong Ing Tong

Defendant/appellant / Immediate Purchaser

Yap Kok Sheng

1st Defendant / Solicitor (sheng Lee Law Office)

Malayan Banking Berhad

6th Defendant / Appellant (bank)

Cheah Teow Meng

7th Defendant / Intended Purchaser

Pengarah Tanah dan Galian Selangor

5th Defendant / Land Registrar

Procedural Posture

Civil Appeal / Judgment of the Court of Appeal Affirming High Court Decision

Legal Issues

  1. 1 Whether transfers of the two properties were obtained by forgery
  2. 2 Whether the immediate purchaser acquired an indefeasible title under National Land Code s340
  3. 3 Whether Maybank acquired its charge in good faith pursuant to NLC s340(3)

Ratio Decidendi

On the evidence the plaintiffs did not execute or authorize the disputed documents and expert and witness testimony established forgery; registration obtained by forgery makes the immediate purchaser's title defeasible under NLC s340(2)(b); Maybank had actual notice of the plaintiffs' caveats and failed to make reasonable inquiries, thus did not acquire its charge in good faith under NLC s340(3); accordingly transfers and charges were set aside and damages awarded against the solicitor who procured the documents.

Court Disposition

Appeals dismissed; High Court judgment affirmed in all material respects.

Orders

  • Declarations that Yap Piat Eng is legitimate registered proprietor and beneficial owner of 1st property and Hoyen Enterprises Sdn Bhd is legitimate registered proprietor and beneficial owner of 2nd property
  • Declaration that transfers of both properties to Wong Ing Tong are null and void and set aside