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

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

The Court held the High Court was not plainly wrong: the SPAs remained subsisting, plaintiffs had paid deposits, taken possession and lodged caveat, a constructive trust arises in equity despite non-payment of the balance to prevent unjust enrichment, laches and limitation defences were inapplicable as pleaded, and therefore the High Court's declarations and orders (including entitlement to specific performance upon payment of RM314,800) were upheld; appeals and cross-appeals dismissed.

Citation
Q-01(NCvC)(W)-468-09/2023 (Mahkamah Rayuan)
Parties
Appellant: Land Custody and Development Authority; Respondent/plaintiff: Pang Chee Hun @ Phang Chee Hun; Respondent/plaintiff: Liew Shin Lian; Respondent/plaintiff: Chai Nyuk Jin; Respondent/defendant (in Liquidation): Merces Builders (S) Sdn Bhd (In Liquidation); Respondent/appellant: Bayu Sempurna Sdn Bhd
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
9 January 2026
Case Number
Q-01(NCvC)(W)-468-09/2023 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeals and Cross Appeals (re Hearing Under S69 Courts of Judicature Act 1964 and Rule 5 Rules of Court of Appeal 1994)
Outcome
Appeals dismissed; cross-appeals dismissed; High Court judgment upheld
Legal Topics
Constructive Trust, Specific Performance, Laches, Limitation, Privity of Contract, Beneficial Ownership, Caveat, Unjust Enrichment, Admissibility of Business Records
Source Language
Malay/English
Property Law Equity and Trusts Contract Law Insolvency Law Civil Procedure Evidence Law Limitation Constructive Trust +7 more

Case Brief

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Parties

Land Custody and Development Authority

Appellant

Pang Chee Hun @ Phang Chee Hun

Respondent/plaintiff

Liew Shin Lian

Respondent/plaintiff

Chai Nyuk Jin

Respondent/plaintiff

Merces Builders (S) Sdn Bhd (In Liquidation)

Respondent/defendant (in Liquidation)

Bayu Sempurna Sdn Bhd

Respondent/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeals and Cross Appeals (re Hearing Under S69 Courts of Judicature Act 1964 and Rule 5 Rules of Court of Appeal 1994)

Legal Issues

  1. 1 Whether a constructive trust can be imposed despite non-payment of full purchase price
  2. 2 Whether plaintiffs were beneficial owners entitled to specific performance
  3. 3 Admissibility of out-of-court receipts under Evidence Act provisions

Ratio Decidendi

The Court held the High Court was not plainly wrong: the SPAs remained subsisting, plaintiffs had paid deposits, taken possession and lodged caveat, a constructive trust arises in equity despite non-payment of the balance to prevent unjust enrichment, laches and limitation defences were inapplicable as pleaded, and therefore the High Court's declarations and orders (including entitlement to specific performance upon payment of RM314,800) were upheld; appeals and cross-appeals dismissed.

Court Disposition

Appeals dismissed; cross-appeals dismissed; High Court judgment upheld

Orders

  • Appeals Q-01(NCvC)(W)-468-09/2023 and Q-02(NCvC)(W)-1365-08/2023 dismissed
  • Each Appellant (LCAD and Bayu Sempurna) to pay costs of RM50,000.00 to the 1st to 3rd Respondents (plaintiffs), subject to payment of the allocatur fee