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COURT OF APPEAL PUTRAJAYA
CHAMPION SCORE SDN BHD – Appellant
Versus
MOHD SOBRI CHEW ABDULLAH – Respondent
[Civil Appeal No: P-02(NCvC)(W)-2249-12-2022]
| Table of Content |
|---|
| 1. developer must deliver unencumbered title. (Para 1 , 2 , 3 , 4) |
| 2. developer as bare trustee cannot charge property. (Para 5 , 6) |
| 3. moneylender claims indefeasibility under torrens system. (Para 7 , 8) |
| 4. court emphasizes trust law principles in property transactions. (Para 9 , 19) |
| 5. developer in liquidation does not appeal. (Para 10 , 12) |
| 6. arguments on charge's validity contested. (Para 13 , 14 , 15 , 16) |
| 7. statutory obligations protect home buyers' interests. (Para 17 , 18) |
| 8. joint venture agreements outline obligations and authority. (Para 20 , 21 , 22) |
| 9. full payment creates buyer's beneficial interest. (Para 23 , 24 , 25) |
| 10. prior equitable interests may defeat subsequent titles. (Para 26 , 27 , 28) |
| 11. court affirms correct application of trust principles. (Para 29 , 30 , 31) |
| 12. indefeasibility requires examination of vitiating factors. (Para 32 , 33 , 34 , 35 , 36) |
| 13. mirror and curtain principles guide land registration. (Para 37 , 38) |
| 14. public policy supports first purchaser's title. (Para 39 , 40 , 41) |
| 15. power of attorney limits must be respected. (Para 42 , 43 , 44) |
| 16. authority to create a charge does not extend to sold property. (Para 45 , 46 , 47 , 48) |
| 17. insufficient powers render charge invalid. (Para 49 , 50 , 51) |
| 18. compliance with statutory contracts is mandatory. (Para 52 , 53 , 54) |
| 19. legal expectations from powers of attorney must be clear. (Para 55 , 56) |
| 20. court upholds claims for equitable interest. (Para 57 , 58) |
| 21. charges executed beyond scope of authority are null. (Para 59 , 60 , 61) |
| 22. purchaser's interests safeguarded by statutory protections. (Para 62 , 63 , 64) |
| 23. statutory prohibitions against encumbrance clarified. (Para 65 , 66) |
| 24. court emphasizes legislative intent for buyer protection. (Para 67 , 68) |
| 25. public confidence in property transactions is vital. (Para 69 , 70) |
| 26. public policy serves to protect weaker parties. (Para 71 , 72 , 73) |
| 27. indefeasibility principle highlighted. (Para 74 , 75) |
| 28. legislative frameworks address inequality in transactions. (Para 76 , 77 , 78) |
| 29. high court supported in prioritizing careful approaches. (Para 79 , 80 , 81) |
| 30. judicial notice taken of industry practices. (Para 82 , 83 , 84) |
| 31. caveats are vital for protecting purchasers' interests. (Para 85 , 86 , 87) |
| 32. purchaser's debt reality recognized. (Para 88 , 89) |
| 33. liability shifted in liquidation cases. (Para 90 , 91) |
| 34. public policy considerations emphasized. (Para 92 , 93) |
| 35. legitimacy of public policy arguments debated. (Para 94 , 95) |
| 36. court preserves purchasers' rights against lender claims. (Para 96 , 97) |
| 37. public interest maintained through careful judgment. (Para 98 , 99) |
[1] No one and certainly not the plaintiff in the High Court below, would have thought that after paying the full purchase price for a house in a development undertaken by Syarikat Perumahan Negara Bhd ("SPNB"), he would be shockingly awakened to the reality that the title to his house for which he had taken possession, is now the subject of a charge created over the property in favour of a moneylender by the developer.
[2] After all, one would expect a developer who had entered into a joint venture with SPNB to develop the master titles into a housing estate to have the decency to abide by its contractual obligation under the statutorily prescribed Sale and Purchase Agreement ("SPA") in the form of Schedule G of the Housing Development (Control and Licensing) Regulations 1989 ("the Housing Regulations"). That obligation included not to encumber the property upon an SPA being signed with the purchaser, and more importantly to undertake as required under the statutory contract, to deliver an unencumbered title to the house after completion and the payment of the full purchase price.
[3] Upon discovery of this horror, the house buyer sued SPNB as the 1st defendant ("D1"), UDI Property Sdn Bhd, the developer as the 2nd defendant ("D2") and the moneylender Champion Score Sdn Bhd, as the
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