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2020 MarsdenLR 1021

HIGH COURT MALAYA SHAH ALAM
SILVAM SELLAPAN & ANOR – Appellant
Versus
TAMILSELVAM VELUSAMY & ORS – Respondent
[Civil Suit No: BA-22NCVC-584-11/2018]



Petitioner Advocates:Thinagaran Batumalai,Shaik Abdullah Abdul Malik,Vijaya Letchumi Muniandy ,Respondent Advocate: Balamurali Ramusamy

The School and its governing bodies lack legal personality, and thus cannot file legal actions regarding land ownership under Malaysian law.

Headnote:(A) Education Ordinance 1957; Education Act 1961; Education Act 1996; National Land Code; Civil Law Act 1956 - Legal identity of educational entities - Court found that the School, its Board of Governors, and the Parent-Teacher Association do not possess legal personality under the laws regulating education in Malaysia, hence lack capacity to file the action. The court also determined the terms under which land may be alienated and registered under relevant land codes. (Paras 26, 36, 61)

Facts of the case: Dispute regarding ownership of land designated for educational purposes, with specific questions on legal entity status and consequent claims over the land.
Findings of Court: The court held the School and associated bodies had no standing to claim ownership.
Issues: Whether the educational bodies are legal persons capable of instituting the action.
Ratio Decidendi: The court concluded that the legislation governing educational institutions does not grant them legal personality, thus disallowing their participation in legal suits.
Result: Action dismissed with costs awarded to the defendants.

JUDGMENT

(After trial)

Wong Kian Kheong J:

A. Introduction

[1] This case concerns the ownership of land at Jalan Templer, 46050 Petaling Jaya (Land) upon which "Sekolah Jenis Kebangsaan (Tamil) Vivekananda Petaling Jaya" (School) is built.

[2] The following questions arise in this case:

(1) whether the School, its Board of Governors (BOG) and Parent-Teacher Association (PTA) are legal entities who are capable of filing this suit (This Action). This novel issue discusses the following legislation:-

(a) Education Ordinance 1957 (EO);

(b) Education Act 1961 [ EA [1961]];

(c) Education Act 1996 [ EA [1996]];

(d) Education (Registration of Educational Institutions) Regulations 1997 (EREI); and

(e) Education (Parent-Teacher Association) Regulations 1998 (EPTA);

(2) does the School, BOG or PTA have any cause of action regarding the Land? This question depends on a resolution of the following two matters:-

(a) could the Land be alienated to the School under s 10(a) to (e) of the Federated Malay States' Land Code [LC (FMS)] ?; and

(e) whether the School, BOG or PTA can be registered as proprietor of the Land pursuant to s 43(a) to (d) of the National Land Code ( NLC );

(3) when the Selangor Ruler in Council (RIC) approved the application for alienation of the Land from the fourth defendant (4th Defendant) by way of a letter dated 30 November 1959 (RIC's Approval) and title of the Land was not registered under LC (FMS) in the 4th Defendant's name:-

(a) did the 4th Defendant acquire an"expectation of title" to the Land (Expectation of Title) which could be enforced in Equity by the 4th Defendant?; and

(b) when NLC replaced LC (FMS), whether the Expectation of Title was enforceable by the 4th Defendant pursuant to . This issue discusses the effect of s 4(1) and its proviso;

(4) whether the first to third defendants ("1st Defendant","2nd Defendant" and"3rd Defendant") could lawfully make a"Declaration of Trust" on 3 November 2003 (Trust Declaration) which stated that, among others, the School was the beneficial owner of the Land. In this respect, are English rules of Equity (in form of a trust regarding land) subject to s 43(a) to (d) NLC as provided in s 3(1) of the Civil Law Act 1956 ( CLA )?;

(5) was the fifth defendant's (5th Defendant) registration of the School as the proprietor of the Land in the"Register Document of Title" (RDT) valid in view of the 4th Defendant's Expectation of Title, ss 4(1) and 43(a) to (d) NLC ? This question discusses the effect of s 340(2)(c) ;

(6) whether the registration of transfer of the Land from the School to 4th Defendant was:-

(a) valid and indefeasible under s 340(1) NLC ; or

(b) defeasible pursuant to s 340(2)(a) NLC on the ground that there was commission of fraud to which the 4th Defendant was a party or privy;

(7) could the 5th Defendant correct the address of the 4th Defendant on the RDT under s 380(1)(a), (b) or (c) NLC ?; and

(8) whether the 5th Defendant can rely on s 22 NLC and/or s 5 of the Government Proceedings Act 1956 (GPA) as defence(s) against This Action.

B. Background

[3] The 4th Defendant was founded in Kuala Lumpur (KL) in 1904 by Swami Vivekananda. At that time, the 4th Defendant was known as "Vivekananda Reading Hall". The 4th Defendant changed its name to"The Vivekananda Ashrama" in 1913.

[4] In 1914, the 4th Defendant started"The Vivekananda Tamil School Brickfields" in KL. This school is now known as"Sekolah Jenis Kebangsaan (Tamil) Vivekananda, Brickfields, KL" [SJK (T) Vivekandana KL].

[5] On 28 November 1934, the 4th Defendant was incorporated as a company limited by guarantee under the then applicable Companies Enactment 1937. The 4th Defendant was set up as a charitable entity to carry out educational, spiritual, cultural and welfare activities in the then Malaya.

[6] The 4th Defendant opened the School (situated on the Land) on 6 January 1958.

[7] On 13 September 1958, Vivekananda Secondary Tamil School Brickfields, KL (now known as"Sekolah Menengah Kebangsaan Viv


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