EXPORT-IMPORT BANK OF MALAYSIA BERHAD LIFE PARADISE SDN. BHD.

EXPORT-IMPORT BANK OF MALAYSIA BERHAD LIFE PARADISE SDN. BHD.

The court held that the bank validly created a lien-holder's caveat under s.281 and s.330 of the National Land Code because the registered proprietor deposited the issue documents as security for a loan thereby establishing the requisite intention; the Malay Reservation Enactment s.10 did not bar registration because the bank fell within the Second Schedule exception (was statutorily recognised), and the statutory lien is separate from and unaffected by third-party charges that were subsequently declared invalid. Consequently the caveat is valid and the bank is entitled to apply for sale by public auction of the listed properties.

Citation
WA-24NCVC-769-04/2019 (Mahkamah Tinggi)
Parties
Appellant/defendant: Life Paradise Sdn. Bhd.; Respondent/plaintiff: Export-Import Bank of Malaysia Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
18 October 2019
Case Number
WA-24NCVC-769-04/2019 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal (originating Summons / Land Enforcement) / Judgment on Originating Summons and Appeal From High Court Decision
Outcome
Originating summons allowed in favour of Export-Import Bank; lien-holder's caveat held valid and enforceable; plaintiff entitled to seek sale by public auction of the listed properties; costs awarded to plaintiff.
Legal Topics
Lien by Deposit, Caveat (lien Holder's Caveat), National Land Code S.281 and S.330, Malay Reservation Enactment S.10, Mortgage/charge Vs Statutory Lien, Sale by Public Auction, Statutory Interpretation
Source Language
Malay/English
Land Law Property Equity Civil Procedure Banking and Finance Lien by Deposit Caveat (lien Holder's Caveat) National Land Code S.281 and S.330 +4 more

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Parties

Life Paradise Sdn. Bhd.

Appellant/defendant

Export-Import Bank of Malaysia Berhad

Respondent/plaintiff

Procedural Posture

Civil Appeal (originating Summons / Land Enforcement) / Judgment on Originating Summons and Appeal From High Court Decision

Legal Issues

  1. 1 Whether the caveat lodged by the bank as lien-holder under s.281 National Land Code is valid
  2. 2 Whether the Malay Reservation Enactment s.10 prevents creation/registration of a lien by deposit in this case
  3. 3 Whether deposit of issue document of title and surrounding circumstances established requisite intention to create a lien

Ratio Decidendi

The court held that the bank validly created a lien-holder's caveat under s.281 and s.330 of the National Land Code because the registered proprietor deposited the issue documents as security for a loan thereby establishing the requisite intention; the Malay Reservation Enactment s.10 did not bar registration because the bank fell within the Second Schedule exception (was statutorily recognised), and the statutory lien is separate from and unaffected by third-party charges that were subsequently declared invalid. Consequently the caveat is valid and the bank is entitled to apply for sale by public auction of the listed properties.

Court Disposition

Originating summons allowed in favour of Export-Import Bank; lien-holder's caveat held valid and enforceable; plaintiff entitled to seek sale by public auction of the listed properties; costs awarded to plaintiff.

Orders

  • Originating summons dated 17 October 2019 allowed
  • Declaration that the lien-holder's caveat lodged by Export-Import Bank of Malaysia Berhad is valid and enforceable