The court ruled that a fraudulent transfer of land ownership is void under Section 340 of the National Land Code, asserting that the administrator of the estate can recover property despite claims of good faith by a subsequent purchaser.

[Lampiran 1]

Introduction

[1] Plaintiff filed suit against Defendants seeking recovery of the 1/2 share in the land identified as Lot No 1944 and 1945, Geran Mukim No GM942 and No. GM943, Mukim 17, Daerah Seberang Perai Tengah, Pulau Pinang (collectively known as "GM942 and GM 943" or "Land") that belonged to the estate of Chong Thoo Fooi ("CTF") transferred from First(1st) and Second(2nd) Defendant to Third Defendant(3rd). The Land was also previously referred to as Lot 131 before it split into GM942 and GM943.

[2] Plaintiffs commenced this action after discovering that CTF's interest in the land had been improperly transferred to 3rd Defendant on 18 March 2014, more than 60 years after the death of CTF. Plaintiff asserted this claim in his capacity as the manager of CTF Properties ("CTF Properties").

[3] Despite being served with the Writ and Statement of Claim, the 1st and 2nd Defendants did not enter any appearances or formally engage in the proceedings. Despite the fact that both the 1st and 2nd Defendants had only made irregular appearances in Court, both the 1st and 2nd Defendants did not file any Defence. Neither did they give any oral evidence nor subject themselves to cross- examination. The 1st and 2nd Defendants are subsequently held liable.

[4] The Court allowed all of the Plaintiff's claims with costs of RM30.000.00 each to be paid by Defendants to the Plaintiff, subject to allocator, after a 12-day trial in this case. Against this judgment, the 3rd Defendant appeals. In this judgment, parties are referred to as they were in the High Court.

Cause Papers

[5] The following are the main cause papers referred to by the parties in this trial.

(i) Writ Saman [Lampiran 1]

(ii) Penyataan Tuntutan [Lampiran 2]

(iii) Pembelaan dan Tuntutan Balas Defendan Ketiga [Lampiran 12]

(iv) Jawapan kepada Pembelaan [Lampiran 13]

(v) Pembelaan Terpinda dan Tuntutan Balas [Lampiran 16]

(vi) Pindaan Jawapan Kepada Pembelaan Terpinda [Lampiran 17]

(vii) Ikatan Pliding [Lampiran 18]

(viii) Fakta Yang Dipersetujui [Lampiran 23]

(ix) Isu-isu Untuk Dibicarakan [Lampiran 24]

(x) Ringkasan Kes Plaintif [Lampiran 26]

(xi) Ringkasan Kes Defendan [Lampiran 27]

(xii) Isu-isu Untuk Dibicarakan [Lampiran 28]

The Issues To Be Tried

Based On The Statement Of Issues To Be Tried By Parties, The Relevant Issues To These Proceedings Are As Follows:

(i) Whether The Trust Deed Dated 1 February 2000, Purportedly Executed By CTF Approximately Forty-Nine (49) Years After His Death, Is Void And Unenforceable By Reason Of Forgery And/Or Fraud;

(ii) Whether The Taiping Court Order Obtained By The 1St Defendant And 2nd Defendant Is Void By Reason Of Fraud And Ought To Be Set Aside;

(iii) Whether The Registration Of Title Of The Land By CTF To The 1St Defendant And 2Nd Defendant By Virtue Of The Taiping High Court Order Is Defeasible And Ought To Be Set Aside;

(iv) Whether The Registration Of The Title Of The Land From The 1st And 2nd Defendants To The 3rd Defendant Is Defeasible And Ought To Be Set Aside;

(v) Whether The 3rd Defendant Is A Purchaser Of The Land In Good Faith And For Valuable Consideration And Had Obtained Indefeasible Title To The Land;

(vi) Whether The Good Faith On