Documents executed by a deceased individual are null and void, and unjust enrichment principles allow recovery of benefits obtained at another's expense.

JUDGMENT

Khadijah Idris J:

Introduction

[1] By way of an originating summons, the Plaintiff sought among others, for a declaration that a charge created over a residential property in favour of the Plaintiff and the transfer of the same be declared null and void and that the second defendant ("2nd Defendant") refund to the Plaintiff the loan disbursed by the Plaintiff for the financing of the said property.

[2] After considering the affidavit evidence and submission of parties, this Court allowed the Plaintiff' originating summons on the grounds stated below.

Background Facts

[3] The Plaintiff, a licensed financial institution, in 2017 granted an Islamic banking facility ("Loan Facility") in the sum of RM778,354.00 ("Loan") to an individual holding himself out to be one Nicholas Chua Xiao Peng (NRIC No: 850826-03-5965) ("Nicholas Chua").

[4] The purpose of the Loan was to part finance the purchase by Nicholas Chua of a 3 storey terrace house ("Property") for a purchase price of RM900,000.00 from the 2nd Defendant pursuant to the Sale and Purchase Agreement dated 6 April 2017 executed between Nicholas Chua and the 2nd Defendant ("SPA").

[5] For the purpose of preparing the loan documentation in respect of the Loan Facility which include among others Letter of Offer of various dates and the Master Facility Agreement ("Loan Documentation") the Plaintiff appointed M/s Angela Low & Joan Chong ("Loan Solicitors").

[6] The security for the Loan is a charge over the Property ("Charge") which was executed by the Nicholas Chua on 24 July 2017 by way of Form 16A of the National Land Code (" NLC "). The Charge was duly registered on 25 September 2017 in favour of the Plaintiff.

[7] On 24 July 2017 the 2nd Defendant executed the Transfer of the Property in favour of Nicholas Chua by way of Form 14A of the NLC . The Transfer was duly registered on 25 September 2017.

[8] On 20 July 2017 the Plaintiff released a redemption sum of RM376,109.20 to the 2nd Defendant's Chargee ie HSBC Bank Malaysia Berhad and the sum of RM13,354.00 to the Loan Solicitors being payment of their legal fees.

[9] On 22 August 2017, the Plaintiff released the balance Loan sum of RM388,890.80 to the Loan Solicitors for the said sum to be transmitted to the 2nd Defendant.

[10] In 2019, the Plaintiff became aware that Nicholas Chua had in fact died on 29 December 2015 ie some 2 years prior to the loan transaction with the Plaintiff and the purported sale and purchase transaction with the 2nd Defendant. The individual who had purportedly executed the SPA and applied for the Loan Facility was not in fact Nicholas Chua but an imposter who was in possession of the original identity card of Nicholas Chua ("Imposter"). The Plaintiff lodged a police report on 2 August 2019 (see Exhibit AIB-14 of Enclosure 2).

[11] As such, the Plaintiff filed this originating summons ie encl 1 ("OS") seeking the following reliefs:-

(1) Satu deklarasi bahawa dokumen-dokumen yang berikut adalah batal dan tak sah dan tidak berkuasa dan oleh yang demikian wajib diketepikan:

(i) Surat-surat Tawaran bertarikh 22 Februari 2017, 27 Mac 2017, 6 Jun 2017 dan 19 Julai 2017 masing-masing dan Perjanjian Kemudahan Induk bertarikh 4 Julai 2017 (selepas ini dirujuk secara kolekitf sebagai "Kemudahan Pinjaman tersebut") yang kesemuanya telah dimasuki oleh Plaintiff dengan seorang individu yang menyamar sebagai Nicholas Chua Xiao Peng (No K/P: 850826-03-5965) ("Penyamar tersebut");

(ii) Perjanjian Jual Beli bertarikh 6 April 2017 berkenaan dengan hartanah yang dipegang di bawah No H.S.(D) 79299, No PT 1288, Mukim Pekan Kuang, Daerah Gombak, Negeri Selangor Darul Ehsan dengan alamat surat-menyurat No 35, Jalan S.P. 24, Taman Seri Putra 3, 47000 Sungai Buloh, Selangor Darul Ehsan ("Hartanah tersebut") yang telah dimasuki oleh Defendan Kedua selaku penjual dan Penyamar tersebut selaku kononnya pembeli Hartanah tersebut;

(iii) Gadaian bertarikh 24 Julai 2017 dan Lampiran (Pihak Pertama) ke atas Hartanah tersebut yang telah dilak