The absence of a formal agreement nullifies claims of ownership without substantial proof of payment or transfer.

Yeoh Wee Siam J:

Introduction

[1] This is an appeal by the defendants/appellants ("appellants") regarding the decision of the learned Judicial Commissioner ("JC") in the Ipoh High Court, dated 13 March 2017, in allowing the claim of the plaintiff/respondent ("respondent") against the appellants, and dismissing the appellants' counterclaim against the respondent, with costs of RM20,000.00 subject to payment of the allocatur fee.

Background Facts

[2] The respondent and the 1st appellant are brothers. At the material time, the 1st appellant was the registered proprietor of three disputed lands namely GM 3249 Lot 2120, GM 3250 Lot 2121 and GM 3251 Lot 2122 ("the three pieces of land"), and co-owner of ⅓ undivided share ("⅓ share") of 10 other pieces land, namely GM 2725 Lot 2041, GM 1579 Lot 2043, GM1578 Lot 2040, GM 1577 Lot 2039, GM 1580 Lot 2044, GM 1581 Lot 2042, GM 1584 Lot 2021, GM 1585 Lot 2022, GM 2726 Lot 2023, GM 1575 Lot 2024 ("the 10 pieces of land"), all of which lands are situated at Mukim Slim Tempat Sungei Sempa in the district of Muallim, Perak.

[3] The respondent alleged that sometime in 2003, without any written agreement, the 1st appellant had agreed to sell and the respondent had agreed to buy all the three pieces of land and the 1st appellant's ⅓ share in the 10 pieces of land at a total purchase price of RM420,000.00. ("Purchase price") (the three pieces of land and the 1st appellant's ⅓ share in the 10 pieces of land are hereinafter collectively referred to as "the 13 pieces of land").

[4] The respondent alleged that he had paid the full amount of the purchase price for all the 13 pieces of land by way of cash instalments, and contra with the sale price of motorcycles sold by the respondent to the 1st appellant, starting from 2003 until 2005.

[5] The respondent contended that after he had paid fully the purchase price for the 13 pieces of land to the 1st appellant, on 25 July 2006, the 1st appellant signed an irrevocable Power of Attorney ("PA") (exh 1, RR Bhg C Jld 4/4 p 381-388) which was witnessed by an Advocate and Solicitor, SP1. The PA was duly registered at the Ipoh High Court.

[6] Without the knowledge of the respondent, on 1 July 2015, the 1st appellant transferred the three pieces of land to the 2nd appellant, who is the 1st appellant's wife, without any valuable consideration, but for love and affection. However, the 1st appellant did nothing to the 10 pieces of land.

[7] On 9 July 2015, the respondent lodged a private caveat ("Caveat") on the three pieces of land. Besides, on 28 July 2015 and 31 July 2015, the respondent transferred the 1st appellant's ⅓ share in the 10 pieces of land to himself.

[8] On 18 November 2015, the Ipoh High Court ordered that the Caveat be maintained until the disposal of the respondent's suit.

[9] On 9 January 2017, the learned JC allowed the respondent's claim as stated in para 16 of the Statement of Claim ("SOC"), and dismissed the appellants' Counterclaim.

The Respondent's Claim

[10] In para 16 of the SOC ((RR Bhg A Jld 1/4) pp 22-30 at pp 29 and 30), the respondent applied for the following Orders:

"(i) Perintah Pengisytiharan bahawa pindahmilik hartanah-hartanah GM 3249 Lot 2120, GM 3250 Lot 2121 dan GM 3251 Lot 2122, kesemuanya di Mukim Slim, Daerah Batang Padang, Negeri Perak kepada Defendan Ketua adalah tidak sah dan pendaftaran pindahmilik tersebut telah dibuat dengan bersandarkan instrument pinda