JUDGMENT

RK Nathan J:

Facts

The plaintiff had granted banking facilities to the defendant. The said banking facilities were renewed from time to time and were secured by a third party charge dated 3 June 1982 over land held under Lot 2785 HS(D) 10750 Negeri

Sembilan (the said land). The third party who is the owner of the land is Tee Hup Seng Holdings Sdn Bhd (the proprietor). On 18 October 1994, some 12 years after the creation of the charge, the defendant caused to be entered a private caveat on the register document of title, claiming to be the beneficial owner of the land and alleging that the proprietor is its trustee. However, nowhere in the land title is the proprietor described as a trustee. Upon the default of the defendant/borrower under the banking facilities, the plaintiff commenced foreclosure proceedings by way of Originating Summons No. 24- 189-98 against the proprietor, culminating in an order for sale issued on 4 January 1999.

This is the plaintiff's application under s. 327(1) of the National Land Code (the NLC)for the removal of the private caveat lodged by the defendant.

Findings Of The Court

Section 322(3)(a) of the NLCstates that the legal rights of the plaint