HE CON SDN BHD 1. BULYAH BINTI ISHAK 2. NORAINI BINTI ABDULLAH

HE CON SDN BHD 1. BULYAH BINTI ISHAK 2. NORAINI BINTI ABDULLAH

The Federal Court affirmed the Court of Appeal: the SPA and the irrevocable registered PA established on the balance of probabilities that the deceased had paid the full purchase price and obtained the beneficial interest; He-Con thereby became a bare trustee and lacked capacity to create a valid charge; Ambank was an immediate chargee whose registered interest was defeasible under s.340(2) NLC and therefore Ambank could not invoke the proviso to s.340(3); both appeals dismissed and Court of Appeal decision affirmed.

Citation
02(f)-22-03/2019(B) (Mahkamah Persekutuan)
Parties
Appellant/1st Defendant (company in Liquidation): He-Con Sdn Bhd; Appellant/4th Defendant (bank): Ambank (M) Berhad; Plaintiff/respondent (joint Administrator): Bulyah Binti Ishak; Plaintiff/respondent (joint Administrator): Noraini Binti Abdullah; 2nd Defendant (director, Adjudged Bankrupt): Teow Beng Hur; 3rd Defendant (director, Adjudged Bankrupt): Narrimah binti Abdullah
Court
f
Jurisdiction
Malaysia
Judgment Date
25 June 2020
Case Number
02(f)-22-03/2019(B) (Mahkamah Persekutuan)
Procedural Posture
Federal Court Civil Appeals From High Court and Court of Appeal / Final Judgment (appeal Disposed)
Outcome
Both appeals dismissed; Court of Appeal decision affirmed
Legal Topics
Indefeasibility of Title, Bare Trust / Beneficial Ownership, Power of Attorney, Charges and Mortgages, Section 340 National Land Code, Parol Evidence Rule, Adverse Inference Under Evidence Act, Duty of Care to Unknown Beneficial Owners
Source Language
Malay/English
Property Law Land Law Equity Contract Law Evidence Law Tort (negligence) Indefeasibility of Title Bare Trust / Beneficial Ownership +6 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 21 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

He-Con Sdn Bhd

Appellant/1st Defendant (company in Liquidation)

Ambank (M) Berhad

Appellant/4th Defendant (bank)

Bulyah Binti Ishak

Plaintiff/respondent (joint Administrator)

Noraini Binti Abdullah

Plaintiff/respondent (joint Administrator)

Teow Beng Hur

2nd Defendant (director, Adjudged Bankrupt)

Narrimah binti Abdullah

3rd Defendant (director, Adjudged Bankrupt)

Procedural Posture

Federal Court Civil Appeals From High Court and Court of Appeal / Final Judgment (appeal Disposed)

Legal Issues

  1. 1 Whether a vendor can become a bare trustee and equitable owner arise absent registration/title
  2. 2 Whether statements in SPA/PA can be conclusive proof of payment without separate receipt
  3. 3 Whether a donor/grantor of an irrevocable PA is thereafter prevented from dealing with property including creating a charge

Ratio Decidendi

The Federal Court affirmed the Court of Appeal: the SPA and the irrevocable registered PA established on the balance of probabilities that the deceased had paid the full purchase price and obtained the beneficial interest; He-Con thereby became a bare trustee and lacked capacity to create a valid charge; Ambank was an immediate chargee whose registered interest was defeasible under s.340(2) NLC and therefore Ambank could not invoke the proviso to s.340(3); both appeals dismissed and Court of Appeal decision affirmed.

Court Disposition

Both appeals dismissed; Court of Appeal decision affirmed

Orders

  • Both appeals (Civil Appeal 02(f)-22-03/2019(B) and Civil Appeal 02(f)-28-04/2019(B)) are dismissed
  • Decision of the Court of Appeal is affirmed