The lack of beneficial interest due to unpaid purchase price justifies the removal of private caveats on property.

Narkunavathy Sundareson JC

Introduction

[1] Enclosure 19 is the Applicant's amended application for the following reliefs:

(i) removal of the Respondent's private caveats on property held under the description of Geran No: 102414, Lot 93, s 11, Bandar Gurun, Daerah Kuala Muda, Kedah (Lot 93) and Geran No: 102416, Lot 95, s 11, Bandar Gurun, Daerah Kuala Muda Kedah (Lot 95) (Properties);

(ii) an injunction to prohibit the Respondent and/or his agents from entering any private caveats on the Properties; and

(iii) costs.

[2] After considering the cause papers and both the written and oral submissions by the parties, this Court decided to allow the Applicant's application. The following are the reasons for the decision.

Averments And Contentions

[3] The chronology leading to this application elicited from the affidavits are as follows. Teoh Kong Peng (Vendor) was the registered proprietor of the Properties. The Properties had been charged to United Overseas Bank (M) Bhd (UOB) for a loan granted to PTM Aik Bee Sdn Bhd.

[4] The Vendor entered into 2 sale and purchase agreements with the Respondent for the sale of the Properties; one dated 14 January 2017 for Lot 93 [Exhibit "TCK-2" Enclosure 5] and another dated 27 January 2017 for Lot 95 [Exhibit "TCK-6" Enclosure 5]. The purchase price for each property was RM 350,000.00.

[5] The Vendor gave written confirmation dated 14 January 2017 that the Respondent had pay the full purchase price for Lot 93 [Exhibit "TCK-2" Enclosure 5] and another written confirmation dated 6 February 2017 that the Respondent had paid RM 269,700.00 towards Lot 95 [Exhibit "TCK-6" Enclosure 5].

[6] The Respondent lodged private caveats on both Properties on 25 January 2017 and 8 February 2017 respectively [Exhibit "YCP-3" Enclosure 2].

[7] Vide letter dated 1 March 2017 [Exhibit "TCK-8" Enclosure 5], the Vendor gave the Respondent an extension of time until 27 October 2018, interest free, to pay the balance purchase price towards Lot 95.

[8] UOB commenced foreclosure proceedings and on 13 March 2017, they obtained orders for sale of the Properties via public auctions.

[9] The Respondent secured orders extending his private caveats until the Properties are registered in his name on 11 March 2018 [Exhibit "TCK-5" Enclosure 5] and 7 March 2018 [Exhibit "TCK-9" Enclosure 5] respectively.

[10] UOB's application to remove the Respondent's caveats vide OS No: KA-24NCVC-931-12/2018 was dismissed on 17 December 2020 [Exhibits "TCK-5" and "TCK-9" Enclosure 5].

[11] The Respondent instituted suits vide Writ Saman No: KA-22NCVC-19-03/2020 and Writ Saman No: KA-22NCVC-20-03/2020 against the estate of the late Vendor and secured judgments in default of defence for specific performance of the sale and purchase agreements on 16 March 2021 [Exhibit "TCK-5" Enclosure 5] and 14 March 2021 respectively [Exhibit "TCK-9" Enclosure 5].

[12] The Applicant bought the Properties at the public auction on 19 April 2022 with notice of the Respondent's caveats. The auction price has been settled in full but the Applicant is unable to register the Properties due to the caveats.

Submissions

[13] The Applicant contends that they are aggrieved by the Respondent's caveat as they are bona fide purchasers of the Properties having successfully bid for them and paid the auction price in full. They contend that the Respondent was wrong to lodge the caveats as they have no caveatable interest in the Properties.

[14] The Respondent on the other hand maintains that he has caveatable interests