Gopal Sri Ram JCA:

[1] This is yet another occasion when we are compelled to decide as to which of two innocent persons who are affected by the fraud of a rogue third party must suffer. In the present case the question arises in the context of immovable property and is clearly determined by statute, namely, the National Land Code ("the Code"). The relevant facts are as follows.

[2] Ismail bin Mohamad ("Ismail") and his wife Sadiah were the registered proprietors of three lots of land. I will, for convenience, refer to these in this judgment as the subject property. Ismail and Sadiah wanted to sell the subject property. On 30 July 1999 they entered into a written agreement with the first defendant. The purchase price was to be RM7.5 million. The written agreement was prepared by the second defendant, an advocate and solicitor. It provided, among other things, that the first defendant was to make two initial payments of RM150,000 and RM50,000 to Ismail and Sadiah. The balance of RM7.3 million was to be paid to the third defendant firm of advocates and solicitors of which the second defendant was a partner. The initial payments were made. Ismail and Sadiah then deposited the