Malaysia Case Law: Decisions & Judgments | LexChat

Topic

Assignment vs charge

Legal area

Court

3 Aug 2020

LIM MEOW KHEAN & 32 LAGI PAKATAN MAWAR (M) SDN BHD (IN LIQUIDATION) & 4 LAGI

Citation

W-02(NCC)(A)-2459-12/2018 (Mahkamah Rayuan)
Court

NCC
Case number

W-02(NCC)(A)-2459-12/2018 (Mahkamah Rayuan)

The Court held the deeds of assignment in the factual matrix were security assignments/equitable mortgages and not absolute assignments; purchasers therefore retained sufficient equitable interest and locus to sue. The master chargee’s undertakings to end‑financiers (for the purchasers’ benefit) were enforceable by purchasers; disposal of master titles with chargee’s consent without crediting purchasers who had paid redemption sums or without delivering subdivided titles and discharges amounted to breach, gave rise to constructive trust and unjust enrichment against developer and chargee. Hig…
TAN YANG LONG & ANOR. V. NEWACRES SDN. BHD.

Citation

TAN YANG LONG & ANOR. V. NEWACRES SDN. BHD.
Court

Malaysian court

The assignment was in substance a charge leaving legal title and capacity to sue with the plaintiffs; defendants' failure to complete by the contractual date and their continued refusal to provide credible assurance amounted to a fundamental breach and renunciation entitling plaintiffs to rescind; liquidated damages payable day to day are not an exclusive remedy preventing rescission; plaintiffs were entitled to repayment of RM47,316 with interest and to have damages assessed.