JUDGMENT

John Lee Kien How @ Mohd Johan Lee J:

(After Trial)

Introduction

[1] Imagine a purchaser who has completed the conveyancing process and fully paid the consideration sum, had the title duly transferred under its name. However, sometime later, its ownership in the land was declared to be null and void owing to the Malay Reservation status which was never stated in the title search report obtained prior to the completion of the transfer process. This status was never stated in the search report owing to the failure of the Land Office staff during the process of digitalisation of the title deeds.

[2] This is a civil action by the poor victim for damages owing to the negligence and for declaratory relief. This ground is written owing to the appeal filed by D1, D2, and D4, who are collectively the State Land Authorities ("SLA Defendants") who are unsatisfied with the decision of this Court at the end of the trial in favour of the Plaintiff who has suffered losses owing to the negligence of the Land Office staff.

Brief Facts Of The Case

[3] The Plaintiff entered into a Sale and Purchase agreement dated 25 November 2013 with Rahim Bin Ismail, who was the owner of all that piece of land held under PM 101, Lot 58, s 4, Padang Puteh, Bandar Padang Mat Sirat, Daerah Langkawi ("the Land"). D6 had since been deceased. Through a Court order dated 9th April 2025, the SLA Defendants brought the estate of RBI into this suit as 3rd Party (3rd Party).

[4] Under the sale and purchase arrangement, the Plaintiff paid the full purchase price of RM1,800,000.00 to D6. This payment included a deposit of RM180,000.00 and a balance of RM1,620,000.00.

[5] The Plaintiff then appointed the firm Le Siew & Co, specifically Khaw Le Na (D5), to handle the conveyancing process.

[6] D5 then conducted an official land search the report of which clearly showed that the Land was not a Malay reserve land. The Plaintiff proceeded with the purchase based on this information and relied on the Land register.

[7] The transfer of the Land to the Plaintiff was registered on 15 October 2014, making the Plaintiff the registered proprietor.

[8] However, the Plaintiff was subsequently served with a writ, Civil Suit No. 21NCVC-1-1/2015 ("the 2015 Suit") [Nor Azahar Zainol v. Art J Original Sdn Bhd & Ors] initiated by D7, Nor Azahar Bin Zainol.

[9] After a full trial, the claim was dismissed by the High Court , but dissatisfied with it, D7 appealed to the Court of Appeal.

[10] The Court of Appeal delivered an Order on 9 October 2018 ("the COA Order") which declared that the Land is indeed a Malay Reserved Land and thus the transfer of the Land to the Plaintiff is void and invalid.

[11] Following the COA Order, the Land was re-transferred back to D6 and later transferred to D7 and D8.

[12] At all material times, the Plaintiff did not know that the Land is a Malay Reserved Land.

[13] The Plaintiff claims that the losses suffered (loss of title and loss of the purchase price) were owing to the negligence of D1 and D2, premised on the breach of statutory duty and/or duty of care owed to the Plaintiff.

[14] The alleged negligence included the failure of D1 and D2 to ensure the particulars of the Land, specifically the Malay Reserved Land endorsement, were always accurate and could be relied upon by the Plaintiff.

[15] D1 and D2 were allegedly in breach of the National Land Code ("the NLC") for failing to properly maintain a register of title and records at the Langkawi Land Office.

[16] Crucially, D1 and D2 allegedly failed to transfer all data/information, particularly the Malay Reserved status contained in the hardcopy of the title to the computerized/digitalized version.

[17] The Plaintiff emphasizes that it would not have purchased the Land if not for the negligence of D1 and D2 in keeping an inaccurate record in the Computerized Land Registrar System.

[18] The Plaintiff thus files this suit, to seek compensation for the losses suffered as a result of the negligence of the SLA Defendan