CHAMPION SCORE SDN BHD MOHD SOBRI CHEW BIN ABDULLAH

CHAMPION SCORE SDN BHD MOHD SOBRI CHEW BIN ABDULLAH

The Court held that the proprietor and developer were bare trustees after the purchaser paid the full price and the irrevocable power of attorney did not authorize charging subdivided titles already sold; the charge was created by an insufficient/void instrument within s 340(2)(b) NLC and was therefore defeasible and liable to be set aside; HDA/Regulation protections and public policy favour the purchaser's equitable interest over the registered charge.

Citation
P-02(NCvC)(W)-2249-12/2022 (Mahkamah Rayuan)
Parties
Appellant / Chargee (moneylender): Champion Score Sdn. Bhd.; Respondent / Purchaser: Mohd Sobri Chew bin Abdullah; Proprietor / 1st Defendant: Syarikat Perumahan Negara Berhad; Developer / 2nd Defendant: UDI Property Sdn. Bhd.
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
12 November 2024
Case Number
P-02(NCvC)(W)-2249-12/2022 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (property/land) / Judgment (court of Appeal)
Outcome
Appeal dismissed; High Court judgment upheld
Legal Topics
Indefeasibility Under Torrens System, Insufficient or Void Instrument (s 340(2)(b) Nlc), Bare Trustee Doctrine, Statutory Sale and Purchase Agreement (schedule G), Power of Attorney Scope and Limits, Charge/mortgage Validity, Consumer Protection in Housing Development
Source Language
Malay/English
Land Law Property Law Contract Law Housing Law Banking and Finance Public Policy Indefeasibility Under Torrens System Insufficient or Void Instrument (s 340(2)(b) Nlc) +5 more

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Parties

Champion Score Sdn. Bhd.

Appellant / Chargee (moneylender)

Mohd Sobri Chew bin Abdullah

Respondent / Purchaser

Syarikat Perumahan Negara Berhad

Proprietor / 1st Defendant

UDI Property Sdn. Bhd.

Developer / 2nd Defendant

Procedural Posture

Civil Appeal (property/land) / Judgment (court of Appeal)

Legal Issues

  1. 1 Whether a developer/proprietor who received full purchase price and stands as a bare trustee can create a valid charge over a sold subdivided title
  2. 2 Whether an instrument of charge executed under an irrevocable power of attorney was insufficient or void under s 340(2)(b) NLC
  3. 3 Whether the statutory SPA under the HDA/Regulations prohibits encumbrance without purchaser consent and thus invalidates subsequent charges

Ratio Decidendi

The Court held that the proprietor and developer were bare trustees after the purchaser paid the full price and the irrevocable power of attorney did not authorize charging subdivided titles already sold; the charge was created by an insufficient/void instrument within s 340(2)(b) NLC and was therefore defeasible and liable to be set aside; HDA/Regulation protections and public policy favour the purchaser's equitable interest over the registered charge.

Court Disposition

Appeal dismissed; High Court judgment upheld

Orders

  • Appeal dismissed and High Court decision affirmed
  • Charge bearing Presentation No. 0799SC20170 cancelled and expunged from the title