Chan Pack Choon Case Review Land Qiqi

Chan Pack Choon & Anor v Chong Ian Shin
Material Facts:
In this case, the plaintiff sought to remove the private caveat lodged by the defendant
under s 327 of the National Land Code (‘the NLC’). The plaintiff contended that he had bought
the land from the registered owner of the land. The name of the registered as endorsed on the
land title was Chong Kiat Chau. In opposing the application, the defendant argued that the
registered owner held the land as a trustee for the defendant and in support of his contention,
the defendant exhibited the trust deed that showed the registered owner held the land as trustee.
The defendant further contended that the land was used merely as a security for a loan taken
by the said Chong Kiat Chau from the plaintiff.
In addition, it was also argued in this case that the registered owner had an indefeasible
title to deal with the land which including right to sell the land a done by the defendant to the
plaintiff in this case.
Legal issues:
1. Whether the registered owner having an indefeasible title had a right to deal with
the land in the manner he thought fit including a right to sell which he did in this
case to the plaintiff?
2. Whether the defendant has right over the land to lodge the private caveat?
Legislations referred:
National Land Code ss 327, 332, 340, 344
Section 332:
(1) A caveat under this section shall be known as a ‘trust caveat’, and may be entered by the
Registrar in respect of any land or interest which (pursuant to section 344, or any corresponding
provision of any previous land law) is expressed to be held by any persons or bodies as trustees.
(2) The effect of any trust caveat shall be precisely stated therein, and may be to prohibit, either
absolutely or except subject to conditions, the registration, endorsement or entry of all or any
of the following –
(a) any instrument of dealing, or class or description of instrument of dealing, directly affecting
the trust property;
(b) any claim to the benefit of any tenancy exempt from registration granted directly thereout;
and
(c) any lien-holder’s caveat in respect thereof:
Provided that no such caveat shall prohibit the registration of any instrument which was
presented prior to the time from which it takes effect, or the endorsement or entry of any claim
or lien-holder’s caveat where the application for endorsement or entry was received prior to
that time.
(3) Where the registration of any instrument or the endorsement or entry of any claim or lien-
holder’s caveat is prohibited by any trust caveat, the Registrar shall reject the instrument or, as
the case may be, the application for endorsement or entry.
(4) On rejecting any instrument or application for endorsement, the Registrar shall take the like
steps as if he had rejected it pursuant to section 298 or, as the case may be, 317.
Held:
Application allowed with costs of RM3,000.
Ratio decidendi:
(1) There was no such memorial describing the registered owner as holding the land in trust
for any person. In the absence of such a memorial, the registered owner had an
indefeasible title and the title could only be challenged by way of fraud or forgery, as
stated in s 340 of the NLC.

(2) The registered owner having an indefeasible title had a right to deal with the land in the
manner he thought fit including a right to sell which he did in this case to the plaintiff.
The defendant had no right or interest over the land to lodge the private caveat.
Furthermore, s 332 of the NLC provided that for a trust property, a trust caveat should be
lodged which could prevent the transfer of the land. In this case no such trust caveat was
lodged so the defendant has no right also for the trust caveat.
Analysis/Opinion:
Trust caveat can be defined as a caveat where it is entered to protect the interest in the
land where it will be expressed to anyone to be the trustees. The nature of trust caveat where it
will be entered by the Registrar once it is expressed by any persons or bodies as trustees. The
section that governs trust caveat is Section 332 of National Land Code.
The effect of trust caveat is only to prohibit the registration of any instrument which
was presented prior to the time from which it takes effect or the endorsement or entry of any
claim or lien-holder’s caveat where the application for endorsement or entry was received prior
to that time. To explain more, trust caveat prohibits where registration cannot be made prior to
the time of which the caveat takes effect; or the endorsement or entry of any claim and also
where the application for endorsement was received prior to that time.
After that, the person who can enter the trust caveat has been explained in Section 333
of the National Land Code where (1) - Registrar may enter into trust caveat upon application
of the trustee for the time being of any land, person or body by whom land is transferred to
person or body by whom interest is created in favour of Trustees. The application to enter into
trust caveat also must be made in form 19E and from this form it will be attested correctly.
The duration of the trust caveat will be continue in force until it being cancelled by the
Registrar on application by the trustees or anyone who entitled for the trust. Every cancellation
of the trust caveat, it must be signed and sealed by the Registrar.
To apply in this reviewed case, I would agree with the decision of the High Court judge
where the judge removed the private caveat that has been lodged by the defendant. The reason
why I agree with it is because there is no memorial describing the registered owner as holding
the land in the trust for any person. So, because of that the registered owner still had the
indefeasible title of the land.
I also agree with the judgement of the judge where there was no also trust caveat created
because under Section 332 of National Land Code the trust caveat must be lodged. However,
in this case there was no lodge about the caveat trust and because of that, it was not comply
with the provision under Section 332 of NLC.

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Chan Pack Choon & Anor v Chong Ian Shin

by the said Chong Kiat Chau from the plaintiff.

plaintiff in this case.

case to the plaintiff?

National Land Code ss 327, 332, 340, 344

the trust property;

(c) any lien-holder’s caveat in respect thereof:

the case may be, the application for endorsement or entry.

Application allowed with costs of RM3,000.

stated in s 340 of the NLC.

of the trust caveat, it must be signed and sealed by the Registrar.

indefeasible title of the land.

with the provision under Section 332 of NLC.

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