1. MAPLE AMALGAMATED SDN BHD 2. LIEW HON KONG @ LIEW KWAN VOON BANK PERTANIAN MALAYSIA BERHAD

1. MAPLE AMALGAMATED SDN BHD 2. LIEW HON KONG @ LIEW KWAN VOON BANK PERTANIAN MALAYSIA BERHAD

The APA and ASA were part of a BBA financing double‑sale and did not evidence an intention to transfer, convey or dispose of the estate land at execution; s.214A(1) applies at the stage of registration/attempted transfer on the land title, therefore the BBA documents did not contravene s.214A(1); accordingly the Guarantee, Indemnity and registered charge remain valid and criminal s.10A did not apply.

Citation
A-02(NCVC)(A)-553-03/2019 (Mahkamah Rayuan)
Parties
First Appellant (registered Proprietor): Maple Amalgamated Sdn Bhd (No. 780760-P) (In Liquidation); Second Appellant (guarantor / Contributory): Liew Hon Kong @ Liew Kwan Voon; Respondent (bank / Financier): Bank Pertanian Malaysia Berhad (No. 811810-U)
Court
NCVC
Jurisdiction
Malaysia
Judgment Date
13 March 2020
Case Number
A-02(NCVC)(A)-553-03/2019 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (appeal From High Court) / Judgment on Appeal (court of Appeal)
Outcome
Appeal dismissed.
Legal Topics
Section 214 a National Land Code, Bai' Bithaman Ajil (bba) Double Sale Structure, Legal Charge, Guarantee and Indemnity, Validity of Sale Agreements, Estate Land Board Approval
Source Language
Malay/English
Land Law Islamic Finance Contract Law Civil Procedure Section 214 a National Land Code Bai' Bithaman Ajil (bba) Double Sale Structure Legal Charge Guarantee and Indemnity +2 more

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Parties

Maple Amalgamated Sdn Bhd (No. 780760-P) (In Liquidation)

First Appellant (registered Proprietor)

Liew Hon Kong @ Liew Kwan Voon

Second Appellant (guarantor / Contributory)

Bank Pertanian Malaysia Berhad (No. 811810-U)

Respondent (bank / Financier)

Procedural Posture

Civil Appeal (appeal From High Court) / Judgment on Appeal (court of Appeal)

Legal Issues

  1. 1 Whether APA and ASA under BBA contravened s.214A(1) NLC for estate land without Estate Land Board approval
  2. 2 Whether execution of APA and ASA effected a transfer, conveyance or disposal of estate land
  3. 3 Whether Guarantee and Indemnity Agreement and legal charge are void for contravening s.214A(1)

Ratio Decidendi

The APA and ASA were part of a BBA financing double‑sale and did not evidence an intention to transfer, convey or dispose of the estate land at execution; s.214A(1) applies at the stage of registration/attempted transfer on the land title, therefore the BBA documents did not contravene s.214A(1); accordingly the Guarantee, Indemnity and registered charge remain valid and criminal s.10A did not apply.

Court Disposition

Appeal dismissed.

Orders

  • Appeal dismissed with costs of RM20,000.00, subject to allocatur.