A party's right to property subject to rescinded contracts is contingent on mutual restitution obligations, emphasizing equitable principles in contract law.

[1] The questions upon which leave was granted to RHB Bank Berhad to appeal in Civil Appeal 02-36-2013(W), and to Atlas Corporation Sdn Bhd (in liquidation) and liquidators, namely Taufiq Ahmad @ Ahmad Mustapha bin Ghazali and Mak Kam Choon to appeal in Civil Appeal 02-38-2013(W), against the order of the Court of Appeal in respect of the matter decided by the High Court in the exercise of its original jurisdiction, read:

RAYUAN SIVIL NO: 02(f)-36-07-2013(W)

1. Sama ada penyerahan hak (assignment) ke semua hak, hak milik dan manfaat di dalam perjanjian jual beli tidak akan (lagi) berkesan selepas (setelah) suatu perintah bagi pembatalan perjanjian jual beli itu?

2. Sama ada bank yang menerima suatu penyerahan hak perjanjian jual beli yang telah dibatalkan oleh suatu perintah bagi pembatalan mempunyai apa-apa hak atau obligasi kontrak untuk menyerah hak semula.

Sama ada satu penerima bank (receipient bank) di bawah perjanjian jual beli yang telah dibatalkan (rescinded) oleh suatu Perintah Pembatalan (Order for Rescission) mempunyai apa-apa hak di bawah kontrak atau obligasi (contractual right or obligation) untuk menyerah hak semula (reassign);

(i) hartanah itu (subject perjanjian jual beli itu) dan/atau;

(ii) harta (hal perkara perjanjian jual beli);

(iii) hak-hak milik dan manfaat di dalam perjanjian jual beli kepada pemberi serahanhak (assignee)/peminjam selepas pembayaran penuh pinjaman (loan).

RAYUAN SIVIL NO: 02(f)-38-07-2013(W)

1. Whether an assignment of all rights, title and benefit of a sale and purchase agreement would be ineffective upon the order for the rescission of the sale and purchase agreement?

2. Whether a recipient bank of an assignment of a sale and purchase agreement that has been rescinded by an order for rescission has any contractual right or obligation to reassign;

(i) the property (the subject matter of the sale and purchase agreement); and/or

(ii) the rights, title and benefit in and to the sale and purchase agreement, to the assignor/borrower upon full payment of the loan?

[2] The background facts could be summarised as follows. On 15 March 1996, Travelsight (M) Sdn Bhd (hereinafter referred to as Travelsight) entered into an agreement to purchase property described as Suite No 1202, Tower B, Wisma Pantai, Kuala Lumpur (hereinafter referred to as the property) from Atlas Corporation Sdn Bhd (hereinafter referred to as Atlas) for RM816,696.00. Travelsight paid RM216,696.00 towards the purchase price. The balance was financed by the Development and Commercial Bank Berhad (now known as RHB Bank Berhad, hereinafter referred to as RHB) who granted a loan facility of RM600,000.00 (made up of a term loan of RM400,000.00 and an overdraft of RM200,000.00) to Travelsight to purchase the property, with the property as the security. At that point in time, given that a separate document of title to the property had yet to be issued, Travelsight could only assign its rights, interests and title in the property to the Development and Commercial Bank Berhad. By a deed of assignment dated 6 December 1996, Travelsight absolutely assigned its rights, interests and title in the property to the Development and Commercial Bank Berhad. Later, by letter dated 2 April 1997, Atlas confirmed that the full purchase price had been paid. On 6 November 2001, Travelsight and th