The Land Administrator has a statutory duty to maintain accurate land records, and negligence in this duty can lead to liability for damages.

[1] This is an appeal by the appellants against the decision of the Court of Appeal in affirming the decision of the High Court in allowing the respondent's claim against the appellants for damages premised on the tort of negligence on the part of the 1st appellant.

[2] Before the High Court, the respondent, Poh Yang Hong was the plaintiff. The Pendaftar Hakmilik, Wilayah Persekutuan, Kuala Lumpur, the 1st appellant herein was the 2nd defendant and the Government of Malaysia, the 2nd appellant was the 3rd defendant in the High Court. The 1st defendant at the High Court was the vendor with whom the plaintiff had entered into a sale and purchase agreement to purchase the property. We shall refer to the parties as they were before the High Court.

Background Facts

[3] The relevant background facts of the case are these. The plaintiff entered into a sale and purchase agreement with one Ng Lai Yin, the 1st defendant to purchase the property held under the description GRN 232, Lot 349, Seksyen 71, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan Kuala Lumpur ("the property"). The purchase price for the property was RM4,451,160.00. The plaintiff's solicitors conducted a private search at the 2nd defendant's office on 18 September 2007 which showed that the 1st defendant was the registered proprietor of the property. The plaintiff paid RM89,023.20 to the 1st defendant's solicitors as earnest deposit and subsequently entered into a sale and purchase agreement on 8 October 2007 to purchase the property. The plaintiff then made the balance payments.

[4] The memorandum of transfer and other documents to effect the transfer and charge of the property was presented to the 2nd defendant's office for registration on 11 February 2008. Whilst registration was pending, the plaintiff came to find out that the property was in fact held under the description of PN 20992, Lot 349, Bandar Kuala Lumpur and was registered to a person named Mohamad Nor bin Mohamad.

[5] The plaintiff's solicitors again conducted searches of the land title to the property at the 2nd defendant's office on 4 June 2008 and the results showed that the land held under title GRN 232, Lot 349, Seksyen 71, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan Kuala Lumpur was registered in the name of the 1st defendant. However, it was also discovered that the same land, but held under different title number PN 20992, Lot 349, Bandar Kuala Lumpur was registered under the name of one Mohamad Nor bin Mohamad.

[6] The plaintiff alleged that the 2nd defendant breached its duty of care to the plaintiff by misrepresenting the true and actual particulars of the property. Further, the plaintiff alleged that the 2nd defendant failed to maintain true and accurate records. The plaintiff relied on the information provided by the 2nd defendant and as a result, suffered losses. On that premise, the plaintiff claimed damages in tort of negligence with interest thereon and costs against the 2nd and 3rd defendants.

[7] The 2nd and 3rd defendants denied the whole of the plaintiff's claim and put the plaintiff to strict proof. The 2nd and 3rd defendants maintained that there was no duty of care owed to the plaintiff and that the information was accurate according to the 2nd defendant's records at the time it was provided for. The 2nd and 3rd defendants also asserted that the plaintiff was not entitled to the relie