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2025 MarsdenLR 3870
HIGH COURT MALAYA KUALA LUMPUR
SKS FOAM (M) SDN BHD – Appellant
Versus
GAN BEE SAN – Respondent
[Originating Summons No: BA-24NCVC-2022-10/2023]
Important Points
Subject
Property Law - Caveats
Act Referred
Headnote
(B) Legal Principles - The caveator must prove 'caveatable interest' and fit the definition of aggrieved, whereas the removal applicant must show they are aggrieved and impacted by a valid caveat (Paras 11, 15)
(C) Court reaffirms that registered proprietors and beneficiaries are distinct legal entities. (Paras 31, 32)
Facts of the case:
Plaintiff, a company in winding up, owned land subject to a caveat lodged by the Defendant, a director of another company. Plaintiff sought removal of the caveat asserting ownership following a Vesting Order. (Paras 6-8)
Findings of Court:
The Defendant had no legal interest justifying the caveat and therefore lacked standing. The caveat hindered the Plaintiff’s ability to sell the property, justifying claims for damages. (Paras 28, 44)
Issues: The court evaluated whether the Defendant had a caveatable interest and whether the Plaintiff could claim damages due to the wrongful caveat. (Paras 19, 33)
Ratio Decidendi: The court reasoned that the Defendant failed to prove a caveatable interest and intended to obstruct the Liquidator's duties, causing inferred damages to the Plaintiff for loss arising from the wrongful caveat. (Paras 31, 38)
Result: The originating summons was allowed, and the Plaintiff was awarded damages. (Paras 39)
| Table of Content |
|---|
| 1. court's order for removal of caveat. (Para 1 , 2 , 3 , 4 , 5) |
| 2. plaintiff's status as legal owner established. (Para 6 , 7 , 8) |
| 3. legal framework for private caveats explained. (Para 9 , 10 , 11) |
| 4. assessment of plaintiff's aggrieved status. (Para 12 , 13 , 14 , 15 , 16 , 17) |
| 5. defendant's contention regarding prior os analyzed. (Para 18 , 19 , 20 , 21 , 22) |
| 6. issues of res judicata addressed. (Para 23 , 24 , 25 , 26) |
| 7. defendant's caveatable interest questioned. (Para 27 , 28 , 29 , 30 , 31 , 32) |
| 8. serious questions to be tried not established. (Para 33 , 34 , 35 , 36 , 37) |
| 9. assessment of damages process initiated. (Para 39 , 40 , 41) |
| 10. court's findings on damages explained. (Para 42 , 43 , 44 , 45) |
(Enclosures 1 And 33)
Introduction
[1] By way of originating summons BA-24NCVC-2022-10/2023 ("OS") the Plaintiff seeks, among others, for an order that the Defendant be directed to remove the caveat she filed on 2 September 2021 and Defendant pay damages to be assessed by this Court.
[2] After considering the affidavit evidence and submissions of both parties, this Court allowed the OS and ordered, among others, for the removal of the caveat and the Defendant pay damages arising from the wrongful entry of the caveat.
[3] Pursuant to this Court's order allowing the OS, the Plaintiff filed a notice for directions ie encl 32 and subsequently notice of appointment for assessment of damages ie encl 33 under O 37 r 1 Rules of Court 2012 ("RoC 2012").
[4] After considering the affidavit evidence and parties' submission this Court ordered the Defendant to pay damages, the details of which will be set out later.
[5] The Defendant appealed against the order for removal of caveat and the order for damages. As such this grounds of judgment will first set out the grounds for allowing the OS followed by the order for damages.
Salient Facts
[6] Plaintiff, SKS Foam Sdn Bhd, a company which is in the process of winding up. The Plaintiff company was the registered proprietor of a land held under GM 16606, Lot No 15482, Mukim Kapar, Klang District ("Land").
[7] The Defendant is a director of a company known as SKS Integrated Group Sdn Bhd ("SKS Integrated").
[8] For ease of reference the salient facts relating to the filing of this OS is tabulated below in a chronological manner:
Enclosure 1 Ie The OS
The law
[9] Under the National Land Code (" NLC ") the person or body at whose instance a private caveat may be entered is expressly provided in s 323 (1) which read as follows:
"Applications for entry of private caveats 323.
(1) The persons and bodies at whose instance a private caveat may be entered are:
(a) any person or body claiming title to, or any registrable interest in, any alienated land or undivided share in any alienated land or any right to such title or interest;
(b) any person or body claiming to be beneficially entitled under any trust affecting any such land or interest; and
(c) the guardian or next friend of any minor claiming to be entitled as mentioned in paragraph (b).
(2) Any such person or body wishing to apply for the entry of such a caveat s hall do so in Form 19B and such application shall be attested in accordance with s 211 notwithstanding that the provisions dealt with dealings in alienated land, and shall state therein the nature of the claim on which his application is based, and whether the caveat is to be expressed to bind the land itself or an undivided share in the land or a particular interest only, and the last known address of the proprietor if the caveat is to be expressed to bind the land itself or an undivided share in the land.
(3) Any application under this section shall be accompanied by:
(a) the prescribed fee;
(b) the grounds giving rise to the claim thereto, verified by a statutory declaration by the applicant or his advocate and solicitor; and
(c) if relating to a part of the land, a description or a plan of the land affected, and if relating to an undivided share in the land or a part ther
