3 Jul 2024
MALAYAN BANKING BERHAD 1. ) Mohd Affandi Bin Ahmad 2. ) Aminah Binti Ahmad
- Citation
- 02(f)-5-03/2024(J) (Mahkamah Persekutuan)
- Court
- f
- Case number
- 02(f)-5-03/2024(J) (Mahkamah Persekutuan)
Appeal allowed. The Federal Court held that where a land is registered in the name of the purchaser and there is no notice or caveat, a subsequent purchaser/chargee who relied on the register and conducted ordinary due diligence is a bona fide purchaser for valuable consideration under the proviso to s.340(3) NLC; the Court of Appeal erred in requiring banks to investigate underlying completed SPAs or to prove it was "impossible" to discover unlawfulness; negligence alone does not equal fraud and does not automatically negate bona fides under the Torrens system.