2025 MarsdenLR 5832
HIGH COURT MALAYA IPOH
TEONG PEEK MENG – Appellant
Versus
ONG CHUN KIM – Respondent
[Originating Summons No: AA-24NCvC-287-06-2024]
Important Points
Subject
Property Law - Caveats
Act Referred
Headnote
(B) The three-prong test for caveatable interest established in Luggage Distributors (M) Sdn Bhd v. Tan Hor Teng & Anor - Grounds for caveat, serious question for trial, and balance of convenience must be satisfied to sustain caveat. (Paras 3, 5, 12, 19)
Facts of the case:
Plaintiff claimed ownership of land following a distribution order after the deceased's death, while the defendant sought to assert a beneficial interest via a caveat nearly two decades later. (Paras 2, 3)
Findings of Court:
Defendant's reliance on beneficiary status does not confer immediate interest, and her allegations were not supported by substantial evidence. (Paras 6, 8, 11, 15)
Issues: The court considered the validity of the caveatable interest, whether a serious question warranted trial, and where the balance of convenience lay. (Paras 3, 15, 17)
Ratio Decidendi: The court ruled that the defendant failed to demonstrate a caveatable interest or a serious question meriting trial, emphasizing the necessity to substantiate claims with evidence. (Paras 10, 16)
Result: The private caveat was ordered to be removed, and the defendant was directed to pay costs to the plaintiff.
| Table of Content |
|---|
| 1. application for caveat removal (Para 1 , 2) |
| 2. three-prong test for caveatable interest (Para 4 , 5) |
| 3. beneficiary status does not confer caveatable interest (Para 6 , 7) |
| 4. legal standards for caveat applications (Para 8 , 9) |
| 5. insufficient evidence for allegations of forgery (Para 11 , 12 , 13 , 15) |
| 6. legal grounds for removal of caveat (Para 14 , 17) |
| 7. balance of convenience favors removal (Para 18 , 19 , 20) |
Introduction
[1] This judgment pertains to the plaintiff's application for the removal of a private caveat lodged by the defendant, the plaintiff's mother, over land registered under Pajakan Hakmilik Sementara Daerah No 2766, PT 367 in Mukim Tanah Rata, Cameron Highlands, Negeri Pahang. The application is made pursuant to s 327 of the National Land Code (" NLC "). It is also noteworthy that the Plaintiff filed a similar application to remove another private caveat lodged by the Plaintiff's brother, over the same property. That application was also heard together with this application and it is registered under Originating Summons No: AA-24NCvC-286-06/2024 [Teong Peek Meng v. Teong Peck Joo [2025] MLRHU 187].
Background Facts
[2] The deceased, Teong Boon Gee, passed away on 6 July 2002, leaving behind his wife, the defendant, and seven children, including the plaintiff. Following his death, a distribution order was issued on 3 June 2003, confirming the transfer of ownership of a piece of land to the plaintiff, who subsequently became the registered owner on 2 April 2004. However, nearly two decades later, on 26 October 2022, the defendant lodged a private caveat against the said property, asserting a beneficial interest as a legal heir of the deceased. In response, the plaintiff has challenged the caveat, arguing that the defendant has no valid caveatable interest and seeking its removal on the basis of insufficient legal or equitable justification.
Issues To Determine
[3] Does the plaintiff satisfy the three-pronged approach for the removal ofthe caveat as established in Luggage Distributors (M) Sdn Bhd v. Tan Hor Teng &Anor ; [1995] 3 CLJ 520 ; [1995] 2 AMR 969 ?
a) Whether the defendant has a valid caveatable interest under s 323(1) of the NLC .
b) Whether the caveator can demonstrate, through affidavits and evidence, a serious issue warranting a trial.
c) Where does the balance of convenience lie in the matter?
Issue 1: Caveatable Interest
[4] The landmark case of Luggage Distributors (M) Sdn Bhd v. Tan Hor Teng &Anor (supra) sets out the test to determine caveatable interest. The Court of Appeal held the following:
"In my judgment, there are three stages through which an inquiry of this nature must go. The first stage is the examination of the grounds expressed in the application for the caveat. If it appears that the grounds stated therein are insufficient in law to support a caveat, then cadit quaestio, and the caveat must be removed without the necessity of going any further.
.....
The matter does not come to an end once the caveator satisfies the Court that his claim as expressed in the application in Form 19B amounts in law to a caveatable interest. He must go on to show, in appropriate cases, that, based on the affidavits filed, his claim discloses a serious question meriting a trial. This then is the second stage. The degree of proof that has to be offered will, of course, vary from case to case.
At this the second stage the Court is more concerned with matters of evidence and proof offered to support the caveator's claim....
The third stage is arrived at only after the first two hurdles have been crossed by the caveator. Here the question to be asked relates to the balance of justice, or what Lord Diplock termed in Eng Mee Yong as 'the balance of convenience'. As to the matters that go to determine in which direction the balance should tilt, these have already been set out in such clear terms by Lord Diplock in Eng Mee Yong that mere repetition becomes unnecessary.
It is only upon satisfy