2011 MarsdenLR 3759 ; 2011 MarsdenLR 1

ARIFIN ZAKARIA, ZULKEFLI MAKINUDIN, JAMES FOONG
HASSAN KADIR & ORS – Appellant
Versus
MOHAMED MOIDU MOHAMED & ANOR – Respondent

The deed of sale executed before the amendment of section 205 of the National Land Code is valid and creates a constructive trust, allowing equitable interests despite registration issues.

Headnote:(A) National Land Code 1965 - Sections 205, 206, 207, 208, 209, and 211 - Appeal against the dismissal of specific performance of a deed of sale and irrevocable power of attorney concerning agricultural land. - The High Court found the deed constituted a binding agreement, creating constructive trust in favor of the plaintiffs. - The Court of Appeal affirmed that the deed executed prior to the enactment of the amended section 205(3) does not trigger its prohibition. (Paras 12, 20, 28)

(B) Constructive Trust - The doctrine of constructive trust allows for equitable interests in land pending registration, as confirmed by case law. - The court affirmed that equity dictates the defendants as registered proprietors must hold the property as constructive trustees for the plaintiffs. (Paras 24, 28).

Facts of the case:
The plaintiffs entered into a deed of sale concerning a portion of agricultural land, paid the price, and were in possession, but registration was not completed following the death of the vendor. The plaintiffs sought specific performance after the defendants denied transfer.

Findings of Court:
The court concluded that the deed constituted a valid agreement, establishing equity through constructive trust.

Issues: The central issues included the applicability of prohibitions under section 205 of the National Land Code and whether an enforceable agreement existed regarding the property.

Ratio Decidendi: The court validated the deed’s efficacy prior to the amended prohibition and emphasized equitable principles of constructive trust to ensure justice.

Result: Appeal dismissed with costs, orders varied.