BAYU SEMPURNA SDN. BHD. 1. ) PANG CHEE HUN @ PHANG CHEE HUN 2. ) LIEW SHIN LIAN 3. ) CHAI NYUK JIN 4. ) MERCES BUILDERS (S) SDN. BHD. (IN LIQUIDATION) 5. ) LAND CUSTODY AND DEVELOPMENT AUTHORITY

BAYU SEMPURNA SDN. BHD. 1. ) PANG CHEE HUN @ PHANG CHEE HUN 2. ) LIEW SHIN LIAN 3. ) CHAI NYUK JIN 4. ) MERCES BUILDERS (S) SDN. BHD. (IN LIQUIDATION) 5. ) LAND CUSTODY AND DEVELOPMENT AUTHORITY

The Court of Appeal held that the High Court was not plainly wrong: a constructive trust arose by operation of equity to protect plaintiffs who had paid substantial sums, taken possession and had subsisting SPAs; non-payment of the entire balance did not bar equitable relief; laches and limitation were not established against the plaintiffs; appellants' reliance on Official Receiver/bank consent did not defeat plaintiffs' equitable rights, and therefore the appeals were dismissed.

Citation
Q-02(NCvC)(W)-1365-08/2023 (Mahkamah Rayuan)
Parties
Appellant: Land Custody and Development Authority; Appellant/respondent: Bayu Sempurna Sdn Bhd; Plaintiff/respondent: Pang Chee Hun @ Phang Chee Hun; Plaintiff/respondent: Liew Shin Lian; Plaintiff/respondent: Chai Nyuk Jin; Defendant/respondent (in Liquidation): Merces Builders (S) Sdn Bhd (In Liquidation)
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
9 January 2026
Case Number
Q-02(NCvC)(W)-1365-08/2023 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal / Court of Appeal Determination (grounds of Judgment) Appeals and Cross Appeals Heard and Dismissed
Outcome
Appeals dismissed; cross-appeals dismissed; High Court declarations and orders affirmed in substance
Legal Topics
Constructive Trust, Specific Performance, Limitation, Laches, Caveat, Beneficial Ownership, Privity of Contract, Admissibility of Documentary Evidence, Unjust Enrichment
Source Language
Malay/English
Property Law Equity and Trusts Contract Law Insolvency Law Civil Procedure Evidence Law Constructive Trust Specific Performance +7 more

Case Brief

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Parties

Land Custody and Development Authority

Appellant

Bayu Sempurna Sdn Bhd

Appellant/respondent

Pang Chee Hun @ Phang Chee Hun

Plaintiff/respondent

Liew Shin Lian

Plaintiff/respondent

Chai Nyuk Jin

Plaintiff/respondent

Merces Builders (S) Sdn Bhd (In Liquidation)

Defendant/respondent (in Liquidation)

Procedural Posture

Civil Appeal / Court of Appeal Determination (grounds of Judgment) Appeals and Cross Appeals Heard and Dismissed

Legal Issues

  1. 1 Whether a constructive trust can be imposed despite non-payment of full purchase price
  2. 2 Whether the plaintiffs are beneficial owners entitled to specific performance upon payment of balance
  3. 3 Whether laches or limitation bars equitable relief

Ratio Decidendi

The Court of Appeal held that the High Court was not plainly wrong: a constructive trust arose by operation of equity to protect plaintiffs who had paid substantial sums, taken possession and had subsisting SPAs; non-payment of the entire balance did not bar equitable relief; laches and limitation were not established against the plaintiffs; appellants' reliance on Official Receiver/bank consent did not defeat plaintiffs' equitable rights, and therefore the appeals were dismissed.

Court Disposition

Appeals dismissed; cross-appeals dismissed; High Court declarations and orders affirmed in substance

Orders

  • Appeals dismissed and cross-appeals dismissed
  • Each appellant (Land Custody and Development Authority; Bayu Sempurna Sdn Bhd) to pay costs of RM50,000.00 to the 1st to 3rd Respondents (plaintiffs), subject to allocatur fee