Beneficiaries of a deceased estate cannot execute a sale and purchase agreement for property without obtaining letters of administration.

[1] This is an appeal by the 1st defendant against the decision of the High Court which dismissed its application to strike out the plaintiff's claim against it pursuant to O 18 r 19(1)(a) and/or (b) and/or (d) of the Rules of (ROC) 2012. We were of the view that the striking out application should have been allowed and we so ordered, accordingly reversing the decision of the High Court. The background facts are not in dispute and are set out below.

Salient Facts

[2] Chong Siew Koey and Choong Siew Thean were a couple who both passed away without wills, collectively leaving behind six properties in Mukim 17, Daerah Seberang Perai with the following details:

[3] Cheng Song Lim, Chen Weng Seng, Chen Thee Sim (the 3rd defendant) and Cheng Gnek Goh (the 4th defendant) were the lawful heirs of Chong Siew Koey and Choong Siew Thean. Each of them was entitled to a quarter (1/4) share of each property.

[4] These four persons entered into a sale and purchase agreement (SPA) dated 15 September 2003 as vendors to sell the aforesaid six properties to Ong Chin Hoo (the plaintiff) for the purchase price of RM1,162,080.00. They did so in their capacity as beneficiaries of Chong Siew Koey and Choong Siew Thean.

[5] Pursuant to the SPA, the plaintiff paid the deposit of 10% of the purchase price (RM116,208.00) to the vendors.

[6] According to Preamble 5 of the SPA, the vendors were obliged to diligently apply for the grant of letters of administration in respect of the estate of Chong Siew Koey and Choong Siew Thean as well as the requisite Court order for the sale of the property to the plaintiff or his nominee.

[7] However, the vendors failed to pursue any application to obtain the grant of letters of administration. Further, Cheng Song Lim and Chen Weng Seng passed away before the transaction could be completed.

[8] Chen Weng Seng passed away on 3 November 2002 and is represented in this action by Chen Kim Hock, the 2nd defendant.

[9] Cheng Song Lim passed away on 2 August 2012 without a will. His estate is represented in this action by Amanah Raya Berhad (ARB), the 1st defendant.

[10] The heirs of Cheng Song Lim declared that his assets and/or liabilities only amounted to cash assets in the sum of RM10,934.95. ARB completed the administration of the estate of Cheng Song Lim and closed his file on 8 January 2013.

[11] The plaintiff filed this claim seeking specific performance of the SPA and ancillary orders.

[12] ARB and the three other defendants to this claim respectively filed applications to strike out the plaintiff's writ of summons and statement of claim. In brief, they contended that at the time of executing the SPA, the four vendors lacked capacity to contract as they were neither the registered nor the lawful beneficial owners of the said properties. At the material time, the grant of letters of administration had not been obtained therefore they could not be regarded as the lawful beneficial owners. Therefore, the plaintiff had no caveatable interest as the SPA was invalid.

[13] The 1st, 2nd and 4th defendants also claimed that the plaintiff paid the deposit under an invalid SPA and that there was inordinate delay on the plaintiff's part in pursuing his claim for specific performance.

[14] The High Court dismissed all the striking out applications with costs.

[15] We are concerned here with the appeal filed by ARB representing the estate of Cheng Song Lim. ARB's striking out application (encl 31) prayed for the matter to be struck out under paras (a) and/or (b) and/or (d) of O 18 r 19(1) RC 2012. The relevant rules are set out below for ease of reference:

"O 18 r 19. Striking out pleadings