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1996 MarsdenLR 2190

FEDERAL COURT KUALA LUMPUR
MAIMUNAH MEGAT MONTAK – Appellant
Versus
MAYBAN FINANCE BERHAD – Respondent
[Civil Appeal No: 02-471-93]



Petitioner Advocates:Teh Meng Teck ,Respondent Advocate: Kharida Ramli

JUDGMENT

Edgar Joseph Jr FCJ:

[1] This was an appeal by a chargor against an order of the High Court, Kuala Lumpur enforcing a charge registered under the National Land Code, 1965, ("the Code"). The order was made pursuant to the chargee's application by way of originating summons, wherein the principal reliefs prayed for were that the charged land to be sold by public auction to satisfy the total amount due and owing to the chargee under the charge and for vacant possession thereof.

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[2] As it was common ground that the order for sale aforesaid had neither fixed the auction date nor stipulated the amount actually due under the charge as required by s 257(1)(b) and (c) of the Code, respectively, we invited Counsel on both sides to argue, as a preliminary point of law, the question what were the legal consequences of such non-compliance.

[3]Section 257(1) provides:

257(1) Every order for sale made by the Court under s 256 shall:

(a) provide for the sale to be by public auction;

(b) require the sale to be held on or as soon as may be after a date specified therein, being a date not less than one month after the date on which the order is made;

c) specify the total amount due to the chargee at the date on which the order is made; and

(d) require the Registrar of the Court to fix a reserve price for the purpose of the sale, being a price equal to the estimated market value of the land or lease in question.

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[4] At the conclusion of the argument, we were unanimously of the opinion, that the provisions of s 257(1)(a) to (d) were mandatory, and as the order for sale in the present case had suffered from the defects herebefore mentioned, it was thereby invalidated.

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[5] We would add, that insofar as there was a conflict of judicial opinion, as to the applicability of the provisions of O 83 r 3 of the Rules of the High 1980, to an application for an order seeking enforcement of a charge registered under the Code, by way of an order for sale, as appeared from the judgments of Shankar J (as he then was) in Citi Bank v. Ibrahim Othman, [1994] 1 MLJ 608 on the one hand, and Abdul Aziz bin Mohamad J in Perwira Affin Bank Berhad v. Tan Tian Ser; [1995] 2 CLJ 133; [1995] 1 AMR 295 on the other, we preferred the reasoning and conclusion of Shankar J.

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[6] In the result, we allowed the appeal with costs, both here and below and set aside the judgment of the High Court. The deposit was ordered to be refunded.

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