1. ) LEE CHAI HEE 2. ) LEE BENG ONG Wan Mohamad Shukri Bin Wan Ab Kadir (Didakwa Sebagai Pegawai Likuidasi Kepada Serdang Baru Properties Sdn. Bhd. (Dalam Penggulungan))

1. ) LEE CHAI HEE 2. ) LEE BENG ONG Wan Mohamad Shukri Bin Wan Ab Kadir (Didakwa Sebagai Pegawai Likuidasi Kepada Serdang Baru Properties Sdn. Bhd. (Dalam Penggulungan))

The liquidator, as an officer managing the wound-up company, has a caveatable interest under s323(1) NLC; the private treaty sale, SPA and registration took place after the winding-up petition and after a court order for sale, and are therefore void under s472 Companies Act 2016 and in breach of s257 NLC; applying Luggage Distributors the caveat must remain on the land register pending resolution of the issues, so the plaintiffs' application to remove the caveat is dismissed and costs awarded to the defendant.

Citation
BA-24NCvC-503-04/2022 (Mahkamah Tinggi)
Parties
Plaintiff (co Proprietor): Lee Chai Hee; Plaintiff (co Proprietor): Lee Beng Ong; Defendant (liquidator of Serdang Baru Properties Sdn Bhd): Wan Mohamad Shukri bin Wan Ab Kadir
Court
High Court
Jurisdiction
Malaysia
Judgment Date
19 October 2022
Case Number
BA-24NCvC-503-04/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (national Land Code S327) / Judgment on Originating Summons
Outcome
Application by plaintiffs to remove private caveat dismissed
Legal Topics
Private Caveat, Caveatable Interest, Void Disposition After Winding Up (s472 Companies Act 2016), Order for Sale (s257 Nlc), Indefeasibility and Registrable Title (s340 Nlc), Balance of Convenience
Source Language
Malay/English
Property Law Company Law Insolvency/liquidation Land Registration Private Caveat Caveatable Interest Void Disposition After Winding Up (s472 Companies Act 2016) Order for Sale (s257 Nlc) +2 more

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Parties

Lee Chai Hee

Plaintiff (co Proprietor)

Lee Beng Ong

Plaintiff (co Proprietor)

Wan Mohamad Shukri bin Wan Ab Kadir

Defendant (liquidator of Serdang Baru Properties Sdn Bhd)

Procedural Posture

Originating Summons (national Land Code S327) / Judgment on Originating Summons

Legal Issues

  1. 1 Whether the liquidator has a caveatable interest to lodge a private caveat
  2. 2 Whether the private treaty sale and subsequent SPA/registration are void for contravening section 472 Companies Act 2016 and the court's order for sale under section 257 NLC
  3. 3 Whether the caveat should be removed after applying the Luggage Distributors test (caveatable interest, serious question, balance of convenience)

Ratio Decidendi

The liquidator, as an officer managing the wound-up company, has a caveatable interest under s323(1) NLC; the private treaty sale, SPA and registration took place after the winding-up petition and after a court order for sale, and are therefore void under s472 Companies Act 2016 and in breach of s257 NLC; applying Luggage Distributors the caveat must remain on the land register pending resolution of the issues, so the plaintiffs' application to remove the caveat is dismissed and costs awarded to the defendant.

Court Disposition

Application by plaintiffs to remove private caveat dismissed

Orders

  • Private caveat entered by defendant to remain on the land register pending trial or determination of issues
  • Application to remove caveat dismissed