In this Application (Encl. 2), the plaintiffs applied under s.327 of the National Land Code 1965 (NLC) to have removed the Private Caveat Presentation No. 5451/92 (Caveat) lodged by the defendant (Caveator) on 18 parcels of lands (18 titles) of which the Plaintiffs are the registered owners.

The brief facts are as follows: By a letter dated 5.5.1988, the State Government of Perak approved an application of the plaintiffs for a piece of land upon certain terms and conditions, including the following restrictions relevant to this Application:

"Sekatan-sekatan kepentingan:

(i) Tanah ini tidak boleh dipindah milik atau di pajak kecil, melainkan kepada orang atau orang-orang yang diluluskan secara bertulis oleh YAB Menteri Besar Perak. [2]

(ii) Tanah ini tidak boleh di bahagi-bahagi kecilkan mengikut Seksyen 135 Kanun Tanah Negara tanpa kebenaran bertulis oleh Menteri Besar Perak."

On the 6.9.89 the plaintiffs and the Caveator entered into a Sale and Purchase Agreement (S/P Agreement) whereby the Caveator purchased the approved land subject to the same terms and conditions including the restrictions from the plaintiffs and one Tengku Abdul Rahman bin Tengku Firdaus (TAR) as