AU MENG NAM & ANOR V. UNG YAK CHEW & ORS

AU MENG NAM & ANOR V. UNG YAK CHEW & ORS

Court allowed the appeal, held Adorna Properties was not a binding precedent insofar as it was decided per incuriam and misread s.340; where the issue document itself is forged the purchaser who takes title directly from the forger does not obtain indefeasible title; the 1st defendant failed to prove he was a bona fide purchaser in good faith and for valuable consideration because of his haste and lack of proper inquiry; consequential orders follow to restore title and cancel the transfer endorsement.

Citation
AU MENG NAM & ANOR V. UNG YAK CHEW & ORS
Parties
Plaintiff/appellant: Au Meng Nam; Plaintiff/appellant: Au Ming Kong; 1st Defendant/respondent: Ung Yak Chew; 2nd Defendant/solicitor: Lau Kok Guan; 3rd Defendant/solicitor: Chuah Chong Ying; 4th Defendant/land Administrator: Pentadbir Tanah Daerah Johor Bahru
Court
Malaysian court
Jurisdiction
Malaysia
Procedural Posture
Civil Appeal (torrens System/land Dispute) / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed. High Court judgment dismissed and set aside insofar as it upheld the 1st defendant's title; plaintiffs declared legal and beneficial owners; transfer endorsement cancelled; damages awarded to plaintiffs to be assessed; costs to plaintiffs; deposit refunded.
Legal Topics
Indefeasibility of Title, Forgery, Bona Fide Purchaser, Deferred Indefeasibility, National Land Code S.340 Interpretation
Source Language
en
Property Law Land Registration Law Civil Procedure Statutory Interpretation Indefeasibility of Title Forgery Bona Fide Purchaser Deferred Indefeasibility +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 13 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Au Meng Nam

Plaintiff/appellant

Au Ming Kong

Plaintiff/appellant

Ung Yak Chew

1st Defendant/respondent

Lau Kok Guan

2nd Defendant/solicitor

Chuah Chong Ying

3rd Defendant/solicitor

Pentadbir Tanah Daerah Johor Bahru

4th Defendant/land Administrator

Procedural Posture

Civil Appeal (torrens System/land Dispute) / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the Federal Court decision in Adorna Properties is binding or per incuriam
  2. 2 Whether s.340(3) proviso protects an immediate purchaser where registration arose from forgery
  3. 3 Whether the 1st defendant was a bona fide purchaser in good faith and for valuable consideration

Ratio Decidendi

Court allowed the appeal, held Adorna Properties was not a binding precedent insofar as it was decided per incuriam and misread s.340; where the issue document itself is forged the purchaser who takes title directly from the forger does not obtain indefeasible title; the 1st defendant failed to prove he was a bona fide purchaser in good faith and for valuable consideration because of his haste and lack of proper inquiry; consequential orders follow to restore title and cancel the transfer endorsement.

Court Disposition

Appeal allowed. High Court judgment dismissed and set aside insofar as it upheld the 1st defendant's title; plaintiffs declared legal and beneficial owners; transfer endorsement cancelled; damages awarded to plaintiffs to be assessed; costs to plaintiffs; deposit refunded.

Orders

  • Declare plaintiffs Au Meng Nam and Au Ming Kong legal and beneficial owners of Geran Mukim No.312 Mukim Pulai Johor
  • Cancel endorsement of transfer presentation No.1299/96 and direct 4th defendant to rectify issue document of title