A caveat may be removed if the caveator fails to comply with statutory requirements necessary to substantiate their claim.

RK Nathan J:

Facts

This is an application by the plaintiff for the removal of a private caveat on land held under H.S.(D)33860, No. P.T. 1185, Mukim Kawasan Bandar VI, Daerah Melaka Tengah, Negeri Melaka (the said property) entered by the defendant. There were also consequential orders prayed for.

By an agreement dated 20 May 1995 (the contract) entered into between Port Dickson Land Development Sdn Bhd (PDLD) and Chase Perdana Berhad (CPB), CPB had agreed to carry out and complete certain works (the works) upon the terms and conditions contained therein. It was an express term of the contract that PDLD would procure a bank guarantee in favour of CPB for the contract sum (the contract sum) as defined in the contract. PDLD failed to procure the said bank guarantee despite the fact that CPB has carried out and completed certain portion of the works. To allay CPB's concern PDLD agreed to deliver and deposit the original document of title to the said property as security for the payment of the contract sum.

When the amount due under the contract reached RM30,554,800.78 (PDLD's debt), PDLD agreed to cause the property to be transferred and registered in the name of CPB or its nominee as part payment towards PDLD's debt. Before the execution of a settlement agreement dated 26 March 1999 between CPB and PDLD (the settlement agreement), PDLD assured CPB that a caveat lodged would be removed. Clause 3 of the settlement agreement provided that PDLD should take all steps and do all acts within its power to procure, inter alia, the defendant to execute and deliver to CPB a valid and registrable transfer to vest the ownership of the said property to CPB or its nominee.

Pursuant to the settlement agreement, Pembinaan Kota Laksamana (Melaka) Sdn Bhd (PKL) and CPB entered into an agreement dated 26 March 1999 (the PKL agreement). Clause 1 of the PKL agreement provided that in consideration of the premises contained therein, PKL agreed to transfer and to register the said property in favour of CPB or its nominee, free from all encumbrances and with vacant possession. CPB in exercising its right of nomination in accordance with the settlement agreement and the PKL agreement, nominated the plaintiff to be named as the transferee in the memorandum of transfer of the property. Notice of assessment of stamp duty on the memorandum of transfer of the property was issued by the stamp duty office on 19 June 1999. The plaintiff being dissatisfied with the assessment of stamp duty appealed against the assessment. The plaintiff's appeal was rejected by the stamp duty office on 27 August 1999. However, an extension of time up to 15 November 1999 was granted to the plaintiff to pay the stamp duty on the memorandum of transfer as assessed. A search made at the relevant land office revealed that the caveat lodged had not been removed and despite the plaintiff's solicitors letter of demand, the defendant had refused and failed to do so.

Findings Of The Court

The defendant opposes this application on the basis that it was entitled to enter the caveat by virtue of a sale and purchase agreement dated 12 March 1997 entered into between PKL as vendor and three other purchasers, namely, Nyala Singa (M) Sdn Bhd (Nyala), the defendant herein and one Tulin Panorama (M) Sdn Bhd, in respect of the said property.

The plaintiff's application to remove this caveat is pursuant to s. 327(1) of the National Land Code 1965 (NLC). The said section reads as follows:

327. Removal of private caveats by the Court.

(1) Any person or body aggrieved by the existence of a private caveat may at any time apply to the Court for an order for its removal, and the Court (acting, if the circumstances so require, ex parte) may make such order on the application as it may think just.

Aggrieved Persons

It is therefore necessary to see if the plaintiff is an aggrieved person under the Act. In Wu Shu Chen v. Raja Zainal Abidin bin Raja Hussin [1997]3CLJ854 [1997] 2 MLJ 487 the