TEE SENG HOCK SEMBAGAVALLY A/P MURUGUSON

TEE SENG HOCK SEMBAGAVALLY A/P MURUGUSON

The Court of Appeal held the High Court erred in deciding on an unpleaded issue that the SPA was a sham to defeat the National Land Code; evidence and pleadings established the SPA was genuine and the respondent had received the purchase price; accordingly the High Court judgment was set aside and judgment entered for the appellant on his counterclaim awarding vacant possession, interest and refund of the redemption sum and costs.

Citation
J-02(NCVC)(W)-1370-07/2019 (Mahkamah Rayuan)
Parties
Appellant / Defendant: Tee Seng Hock; Respondent / Plaintiff: Sembagavally a/p Muruguson
Court
NCVC
Jurisdiction
Malaysia
Judgment Date
20 July 2020
Case Number
J-02(NCVC)(W)-1370-07/2019 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (property/contract) / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed; High Court judgment dated 23.6.2019 set aside; judgment entered for Appellant on counterclaim.
Legal Topics
Specific Performance, Sale and Purchase Agreement, National Land Code S340 (title Defeasibility), Illegality and Public Policy, Sham Transaction, Set Off/loan/security
Source Language
Malay/English
Property Law Contract Law Land Law Equity Civil Procedure Specific Performance Sale and Purchase Agreement National Land Code S340 (title Defeasibility) +3 more

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Parties

Tee Seng Hock

Appellant / Defendant

Sembagavally a/p Muruguson

Respondent / Plaintiff

Procedural Posture

Civil Appeal (property/contract) / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the SPA was a genuine and enforceable sale agreement or a sham intended as security for a loan
  2. 2 Whether the High Court based its decision on unpleaded issues and facts
  3. 3 Whether the appellant’s title was defeasible under s340 of the National Land Code due to alleged illegality

Ratio Decidendi

The Court of Appeal held the High Court erred in deciding on an unpleaded issue that the SPA was a sham to defeat the National Land Code; evidence and pleadings established the SPA was genuine and the respondent had received the purchase price; accordingly the High Court judgment was set aside and judgment entered for the appellant on his counterclaim awarding vacant possession, interest and refund of the redemption sum and costs.

Court Disposition

Appeal allowed; High Court judgment dated 23.6.2019 set aside; judgment entered for Appellant on counterclaim.

Orders

  • Respondent to deliver vacant possession of the subject property to the Appellant within 2 months from the date of this order
  • Interest allowed as per prayer 30(b) of the Appellant's counterclaim with effect from 23.4.2016