Augustine Paul JC:

[1] The substantial question raised in this case is the liability of a purchaser of immovable property at a public auction held pursuant to an order of court under s 256(3) of the National Land Code 1965 ('the NLC 1965') to persons claiming to be in occupation of the property with an equity.

The Facts

[2] Lim Low Tiew ('LLT') was the registered proprietor of land held under Geran Mukim 77, 78 and 11987 Mukim Batu Berendam, Melaka formerly known as Holding Nos 181, 184 and 185 Interim Register, Mukim Batu Berendam, Daerah Melaka Tengah, Melaka ('the lands'). She created two charges over the lands in favour of the Hongkong and Shanghai Banking Corp ('the bank') in 1978 in return for a loan and they were duly registered on 12 October 1978 vide presentation no 3753/78, vol 106, folio 28 and presentation no 3754/78, vol 106, folio 29 ('the charges'). As LLT defaulted in the repayment of the loan, the bank commenced foreclosure proceedings against her and obtained an order for sale on 2 February 1989 to sell the lands by public auction pursuant to s 256(3) vide Originating Summons No 31-338-86 (High court, Melaka). The public auction was held on 21 June 1989 and t