Alice Loke Yee Ching J:

GROUNDS OF JUDGMENT

Introduction

[1]The Plaintiff is the administrator of the estate of one Mohd Nordin bin Yaakob (“Nordin”). The Plaintiff’s case in a nutshell, is this. Nordin’s land was charged as security to CIMB in respect of overdraft facilities granted to Md. Shariff bin Hashim. He defaulted in the repayment of the facilities causing Nordin’s land to be foreclosed and ordered to be sold at a public auction.

[2]However, prior to the public auction, Nordin’s land was gazetted for compulsory acquisition. The 5th Defendant successfully bid for Nordin’s land at the public auction. At the enquiry to determine compensation, the Land Administrator awarded compensation to the 5th Defendant, as it had fully paid for the purchase price of Nordin’s land.

[3]The Plaintiff now seeks to the nullify the sale of Nordin’s land at the public auction and the award of compensation to the 5th Defendant.

The salient facts

[4]The factual matrix comprising the chronology of events giving rise to the claim, is largely undisputed. The documentary evidence speaks for itself.

[5]By letters of offer dated 13.10.1996 and 20.1.1998, Bank Bumiputra Malaysia Berhad approved an overdraft facility to Md. Shariff bin Hashim (“Borrower”) for the amount of RM 40,000.00.

[6]As security for the facility, Nordin charged his property which was a piece of land held under Lot No 2034 GM 2468 Mukim Hulu Langat Negeri Selangor (“the Land”) in favour of Bank Bumiputra Malaysia Berhad. The charge was registered on 24.1.1994.

[7]By a vesting order dated 3.9.1999, the 4th Defendant (“CIMB”), took over all rights of Bank Bumiputra Malaysia Berhad.

[8]Under the terms and conditions of the charge, Nordin agreed to pay, on demand of CIMB, all sums and interests due and payable to CIMB.

[9]The Borrower passed away on 23.1.2000. Nordin also passed away soon thereafter, on 15.3.2000. The Plaintiff, who was Nordin’s son was granted Letters of Administration by the High Court at Kuala Lumpur on 6.10.2004.

[10]On 20.4.2015, CIMB issued a Notice of Default in Form 16D to the Plaintiff pursuant to s. 254 of the National Land Code, to claim the amount of RM 133,737.55 inclusive of interest calculated as at 28.2.2015. The Plaintiff was informed that he was required to remedy the default within 7 days.

[11]The default was not remedied, prompting CIMB to institute foreclosure proceedings. By letter dated 19.4.2018 to the 1st Defendant (“Land Administrator”) CIMB enclosed inter alia, Form 16G and a valuation report dated 24.7.2017 prepared by Land Serve Sdn. Bhd. valuing the Land at RM 1,000,000.00 to apply for an order for sale.

[12]Consequent thereto, the Land Administrator issued a Saman Kepada Penggadai Supaya Hadir Dalam Siasatan di bawah Seksyen 216 to attend an enquiry on 21.6.2018.

[13]On 21.6.2018, the day appointed for the enquiry, Plaintiff was not present. The Land Administrator granted the Order for Sale in Form 16H, and fixed the date for public auction of the Land on 26.7.2018 with the reserve price of RM 1,000,000.00.

[14]The Plaintiff came to know of the Order for Sale soon thereafter and wrote to CIMB on 5.7.2018 to request that the public auction be called off as he was not served with any notices pertaining to the said auction. He also requested for a detailed statement of accounts in order that he could forward a proposal to settle the amount outstanding.

[15]On 19.7.2018, the Plaintiff forwarded a letter to CIMB proposing to pay the amount of RM 100,000.00 to settle the balance outstanding.

[16]Nonetheless, the auction could not be called off in spite of CIMB’s attempts to file Form 16O to postpone the auction. The Land Administrator rejected the Form 16O as it filed later than 19.7.2018, being the last date to present the form.

[17]On 26.7.2018, the 5th Defendant (“Stigma Emas”) successfully bid for the Land. Stigma Emas paid RM 100,000.00 as deposit towards the purchase price of the Land. Following the bid, a contract of sale was executed between CIMB’s soli