Unregistered sub-leases do not confer rights over a registered title without registration or chargee consent.

Christopher Chin Soo Yin J:

Preliminary

[1] This is a writ action which has been winding its way through the Courts since 2018. When this matter came before me for the first time on the 13 February 2023 for pre-trial management I noticed that the facts of this case concerned certain fundamental principles of Sabah land law which if decided, may be capable of deciding this suit altogether without having to go for full trial. The Counsels for the parties agreed with my synopsis as follows as recorded in the Notes of proceedings on that day:

Court: I have read the pleadings in this case which essentially involved a successful bidder of auctioned land under s 111 of the Land Ordinance who is now faced with claims from occupants of the same land claiming rights of occupation by way of lease although such lease was not registered under the Land Ordinance. Am I right?

Kong: I Confirm. (for 1st Defendant)

Chung: Confirm. (for Plaintiff)

Court: I direct that parties agree and file the issues in this case and the agreed questions of law which they want this Court to decide on, as from today's hearing it is very clear that the facts as highlighted above are really not in dispute. Once the issue of law has been decided, then the parties would be at liberty to take whatever action is required pursuant to those issues decided including to appeal against this Court's decision. Put simply, notwithstanding any decision from this Court on the legal issue the parties are at liberty to file afresh on the residue issues or consequential issues.

The Agreed Preliminary Issues To Be Determined

[2] With the agreement of the parties, I will decide the agreed issues under O 33 of the Rules of 2012 which states:

Order 33 r 5. If it appears to the Court that the decision on any question or issue arising in a cause or matter and tried separately from the cause or matter substantially disposes of the cause or matter or renders the trial of the cause or matter unnecessary, it may dismiss the cause or matter or make such order or give such judgment therein as may be just.

[3] The Preliminary Issues to be Determined was agreed by the parties and filed under encl 155 and lists the following:

A. Are the unregistered memoranda of sub-lease over the Properties given by the previous registered owner Comsa Properties Sdn Bhd, to the 1st defendant invalid, null and void, or are the interests and/or rights of the Plaintiff as the registered and beneficial owner of the properties which were acquired through an auction sale pursuant to s 111 of the Sabah Land Ordinance subject to the 1st defendant's sub-leases particularly in view that the 1st defendant had lodged caveats over the Properties and the caveats were brought to the attention of the Plaintiff in the recitals to the sale and purchase agreement dated 17 February 2017?

B. As a matter of law, would the Plaintiff's interests and/or rights as the registered and beneficial owner of the properties, which were acquired through and auction sale pursuant to s 111 of the Sabah Land Ordinance , be bound by or affected by any rights in equity which the 1st Defendant may have against Zurich Insurance Malaysia Berhad;

C. If the unregistered memoranda of sub-leases over the properties given by Comsa properties Sdn Bhd to the 1st Defendant are valid, can the 1st Defendant further sub-lease the Properties or any portion thereof to other sub-tenants including the 2nd and 3rd Defendants?

Legislation Paramount

[4] The starting point in any legal analysis of any question of law or issue is to see if legislation has provided a definitive provision that neatly encompass the issue at hand. If it does, the narratio