Poh Kee 1. ) CHIN KIM YANG 2. ) Pentadbir Tanah dan Daerah 3. ) Kerajaan Negeri Johor

Poh Kee 1. ) CHIN KIM YANG 2. ) Pentadbir Tanah dan Daerah 3. ) Kerajaan Negeri Johor

The written sale agreement and subsequent transfer were a sham masking an unlicensed moneylending transaction; the monthly payments were interest, the moneylending was unlicensed and therefore unlawful and unenforceable under the Moneylenders Act 1951 (s16(1) and related provisions); accordingly the sale and transfers are void and the land registry must restore title to the plaintiffs' prior position; ancillary equitable and monetary relief follows as ordered.

Citation
JB-22NCvC-50-07/2017 (Mahkamah Tinggi)
Parties
Plaintiff (joint Administrator for Estate of Ng Seok Ten @ Ng Hon): Poh Kee; Plaintiff (joint Administrator for Estate of Ng Seok Ten @ Ng Hon): Poh Hock Ming; Defendant First (purchaser): Chim Kim Yang; Defendant Second (district Land Administrator): Pentadbir Tanah Daerah Muar; Defendant Third (state Government Principal of Defendant Second): Kerajaan Negeri Johor
Court
High Court
Jurisdiction
Malaysia
Judgment Date
6 April 2022
Case Number
JB-22NCvC-50-07/2017 (Mahkamah Tinggi)
Procedural Posture
Civil Suit (high Court) / Judgment (trial Concluded)
Outcome
Writ of summons allowed; sale agreement and transfers declared void and orders made to restore original title; costs awarded
Legal Topics
Sham Transaction, Illegal Moneylending, Void Transfer, Injunction, Indefeasibility Exceptions, Extrinsic Evidence to Contradict Document
Source Language
Malay/English
Property Law Contract Law Moneylenders Law Evidence Law Land Registration Sham Transaction Illegal Moneylending Void Transfer +3 more

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Parties

Poh Kee

Plaintiff (joint Administrator for Estate of Ng Seok Ten @ Ng Hon)

Poh Hock Ming

Plaintiff (joint Administrator for Estate of Ng Seok Ten @ Ng Hon)

Chim Kim Yang

Defendant First (purchaser)

Pentadbir Tanah Daerah Muar

Defendant Second (district Land Administrator)

Kerajaan Negeri Johor

Defendant Third (state Government Principal of Defendant Second)

Procedural Posture

Civil Suit (high Court) / Judgment (trial Concluded)

Legal Issues

  1. 1 Whether the 25.03.2015 sale agreement was a sham concealing an unlicensed loan (illegal moneylending)
  2. 2 Whether the sale agreement and subsequent transfers (including Form 14A and transfer on 27.03.2017) are valid and enforceable
  3. 3 Whether the plaintiffs breached contract and whether defendants are entitled to damages or other relief

Ratio Decidendi

The written sale agreement and subsequent transfer were a sham masking an unlicensed moneylending transaction; the monthly payments were interest, the moneylending was unlicensed and therefore unlawful and unenforceable under the Moneylenders Act 1951 (s16(1) and related provisions); accordingly the sale and transfers are void and the land registry must restore title to the plaintiffs' prior position; ancillary equitable and monetary relief follows as ordered.

Court Disposition

Writ of summons allowed; sale agreement and transfers declared void and orders made to restore original title; costs awarded

Orders

  • Declaration that the Sale and Purchase Agreement dated 25.03.2015 is void, null and of no legal effect
  • Declaration that Form 14A / memorandum of transfer dated 11.10.2016 and instruments used to effect transfer on 27.03.2017 (Per.No.1229/2017) are void ab initio