The termination of a Land Transfer Agreement eliminates the legal basis for a caveat; thus, the caveat must be removed if the underlying agreement is no longer in effect.

[Enclosure 1 - Removal Of Caveat]

A. Introduction

[1] The Plaintiff, Zecon Demak Jaya Sdn Bhd applied for the caveat lodged by the Defendant vide Instrument No. L.5859/2012 registered on the 6 March 2012 at the Kuching Land Registry Office affecting Lot 462 Block 15 Salak Land District be forthwith removed.

[2] I have considered the arguments advanced by both parties and after perusing the affidavit evidence and the submissions filed herein, the Plaintiff's application as in paras 1, 2 and 3 of encl 1 is allowed with costs of RM5000.00, subject to the payment of an allocatur fee.

[3] Being dissatisfied with my decision, the Defendant filed this appeal.

[4] Below are the grounds for my decision.

B. Brief Background Facts

The Plaintiff's Application

[5] By the Plaintiff's Originating Summons [Encl 1] dated 12 June 2023, the Plaintiff is seeking, inter alia:

(a) an order to remove the Defendant's caveat Instrument No L.5859/2012 registered on the 6 March 2012 at the Kuching Land Registry Office ("the Defendant's Caveat") affecting the Plaintiff's land at Lot 462 Block 15 Salak Land District ("the said Land");

(b) that the Registrar of Lands and Surveys, and all authorities concerned are directed under s 183 of the Sarawak Land Code (Ca p 81) to give effect to this Order;

(c) costs be paid by the Defendant to the Plaintiff; and

(d) such further orders and/or reliefs that this Honourable Court thinks fit.

Grounds For The Application

[6] Briefly, the Plaintiff relied on the following grounds:

(a) The said Caveat Instrument No L.5859/2012 affecting Lot 462 Block 15 Salak Land District stated that the Defendant was claiming by virtue of a Land Transfer Agreement dated 17 August 2005 entered between Zecon Land Sdn Bhd (the Plaintiff's lawful attorney) and the Defendant.

(b) The said Land Transfer Agreement stipulated that the Defendant was to pay the balance purchase price to Zecon Land Sdn Bhd within 21 days from the date of notification of the issuance of a separate document of title to Lot 462.

(c) A separate individual document of title for Lot 462 was issued on 17 April 2009.

(d) By a letter dated 20 April 2009, Zecon Land Sdn Bhd notified the Defendant of the issuance of the title and requested, inter alia, for payment of the balance purchase price.

(e) The Defendant failed to pay the balance purchase price to Zecon Land Sdn Bhd within 21 days of the aforesaid notification or at all.

(f) The said Land Transfer Agreement was duly terminated by Zecon Land Sdn Bhd by a written notice dated 25 July 2013.

(g) As at the date of filing of this Originating Summons, neither the Plaintiff nor Zecon Land Sdn Bhd has been served with any writ or other originating process commenced by the Defendant in respect of its purported claim under the said Land Transfer Agreement.

(h) The further and other grounds are more particularly stated in the Affidavit in Support of Zainurin Bin Ahmad filed herewith.

C. Cause Papers

[7] The Plaintiff refers to the following cause papers during the hearing:

(a) Plaintiff's Originating Summons [Encl 1] dated 12 June 2023 (for brevity, "Plaintiff's Originating Summons");

(b) Plaintiff's Affidavit in Support [Encl 2] affirmed by Zainurin Bin Ahmad on 9 June 2023 (for brevity, "Plaintiff's Affidavit in Support");

(c) Defendant's Affidavit in Opposition [Encl 7] affirmed by Wan Habeeb Alli Bin Wan Yep Mohdzar on 9 August 2023 (for brevity, "Defendant's Affidavit in Opposition"); and

(d) Plaintiff's Affidavit in Reply [Encl 9] affirmed by Zainurin Bin Ahmad on 5