yeong oon kong & anor v lee chu ming and ors

8/12/2019 Yeong Oon Kong & Anor v Lee Chu Ming and Ors

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Malayan Law Journal Unreported/2010/Volume /Yeong Oon Kong & Anor v Lee !u M"ng andOr# $ %2010 MLJU 1'() $ 12 *ovem+er 2010

%2010 MLJU 1'()

Yeong Oon Kong & Anor v Lee Chu Ming and Ors

HIGH COURT (IPOH)SU GOK YIAM !CI"IL SUIT #O $$% O' $$ #ove*er $

Thevin Chandran (Zaireen with him) (Thevin Chandran & Wong) for the plaintiffs.

EP Seeralasittan (Chong & Poh) for the second defendant.

Kerpal Singh (ag!it Kerpal & Sa"thi) for the first defendant.

#athan S$%ramaniam Eliatam% (W' Chan & o) for the third to the seventh defendants.

Su Geo+ Yia !,

!U-GM#T

,!"# "# a #u"t -"led +y t!e 1#t and 2nd pla"nt"--# on 1. January 2000 aga"n#t t!e 1#t de-endant"n"t"ally la"m"ng -or #pe"-" per-ormane o- a #ale and pur!a#e agreement dated ' Augu#t 11t!e 1#t 34PA35 o- a #"ngle #torey terrae !ou#e orner lot5 ereted on a p"ee o- land !eld under6475KA 2)'1/8' Lot 80.0 Mu9"m Ulu K"nta and +ear"ng t!e addre## *o: 1 ;egat ,a#e9 Jaya

.1)00


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pur!a#e pr"e o- ;MB000:00 to t!e 1#t de-endant w"t!"n . mont!# o- t!e date o- t!e agreementor "- t!e pla"nt"--# are de#"rou# o- o+ta"n"ng a loan -rom a +an9 or a -"nan"al "n#t"tut"on t!e3-"nan"er35 upon t!e relea#e o- t!e loan +y t!e pla"nt"--#> -"nan"er to t!e pla"nt"--#> #ol""tor# t!e3omplet"on per"od35: ,!e 1#t 4PA al#o prov"ded -or an e@ten#"on o- 1 mont! -or t!e omplet"on o-

t!e agreement "n t!e event t!e pla"nt"--# are una+le to pay t!e +alane o- t!e pur!a#e pr"ew"t!"n t!e omplet"on per"od:

,!e 1 4PA and t!e tran#-er -orm Corm 1)A "n t!e *at"onal Land ode 1(' t!e 3*L35 wereduly e@euted +y t!e pla"nt"--# and t!e 1#t de-endant at t!e o--"e o- Me##r#: Leong & K!oo t!e#ol""tor# -or t!e pla"nt"--#:

,!e 1#t de-endant !ad made "t 9nown to t!e 1#t pla"nt"-- and al#o t!e onveyan"ng #ol""toronerned t!e late Mr: K!oo !"n 4eong 3Mr: K!oo35 w!o wa# a partner o- Me##r#: Leong &K!oo t!at !e !ad +oug!t t!e property w"t! t!e a"d o- a government !ou#"ng loan t!e 3loan5: Att!e t"me t!e part"e# e@euted t!e 1#t 4PA t!e pla"nt"--# and t!e"r #ol""tor# d"d not 9now w!at wa#t!e +alane o- t!e loan out#tand"ng: ,!e 1#t de-endant wa# under t!e "mpre##"on t!at t!e+alane o- t!e loan out#tand"ng wa# ;M0000:00:

,!e 1#t pla"nt"-- !ad "nd"ated to t!e 1#t de-endant t!at !e w"#!ed to oupy t!e property

-ort!w"t!: A# t!e property !ad +een vaant -or a+out ' -"ve5 year# pr"or to t!e e@eut"on o- t!e 1#t4PA t!e 1#t de-endant allowed t!e pla"nt"--# to oupy t!e property +e-ore t!e omplet"on o- t!e1#t 4PA t!e 3"nter"m per"od35: 4o "n t!e mont! o- Augu#t 11 a-ter e@eut"ng t!e 1 4PA t!epla"nt"--# moved "nto t!e property: ,!e pla"nt"--# la"med t!at t!ey !ad repa"red and renovated t!eproperty +e-ore mov"ng "nto t!e property upon gett"ng t!e on#ent o- t!e 1#t de-endant: ,!"# "#d"#puted +y t!e 1#t de-endant:

On ( 4eptem+er 11 t!e 2nd de-endant wrote to t!e 6ou#"ng Loan# 7"v"#"on o- t!e Malay#"an,rea#ury t!e 36ou#"ng Loan# 7"v"#"on35 to en=u"re a# to t!e amount o- loan w!"! t!e 1#tde-endant #t"ll owed t!e government: # letter dated 1( 4eptem+er 11P2: ,!e pla"nt"--# were al#o a+le to ome up w"t! t!e d"--erent"al #um o- ;M 1)000:00: 4o t!epla"nt"--# were a+le and w"ll"ng to omplete t!e 1#t 4PA +y pay"ng to t!e 1#t de-endant t!e +alaneo- t!e pur!a#e pr"e o- ;MB000:00: 6owever on 1B Oto+er 11 t!e 6ou#"ng Loan#

7"v"#"on wrote and "n-ormed t!e 2nd de-endant t!at t!e amount o- loan out#tand"ng a# at t!e endo- Mar! 12 wa# ;M 101B11:21:

Dut t!e 1 de-endant wa# "n no po#"t"on to !and over vaant po##e##"on o- t!e property to t!epla"nt"--# even "- t!e pla"nt"--# were to pay t!e +alane o- t!e pur!a#e pr"e to t!e 1#t de-endant+eau#e t!e 1#t de-endant wa# una+le to ra"#e t!e d"--erent"al #um o- ;M11B11:21 "n order toredeem t!e property: 4o "n order to prevent t!e 1#t 4PA -rom lap#"ng or om"ng to an end a# t!epla"nt"--# were #t"ll 9een to pur!a#e t!e property t!e 1#t pla"nt"-- agreed to po#tpone t!eomplet"on per"od unt"l #u! t"me a# t!e +alane o- t!e loan wa# redued t!roug! mont!lydedut"on# -rom t!e 1#t de-endant># #alary to a #um o- ;MB000:00 "n order to orre#pond to t!eamount o- t!e +alane o- t!e pur!a#e pr"e o- ;MB000:00:

,!e pla"nt"--# la"med t!at t!ey ver+ally on#ented to t!e e@ten#"on o- t!e omplet"on per"od "n t!emanner a# #et out a+ove "n on#"derat"on o- t!e oral prom"#e g"ven to t!em +y t!e 1#t de-endant

"n Oto+er 11 to allow t!em to ont"nue to oupy t!e property w"t!out !av"ng to pay any rentalto t!e 1#t de-endant: ,!"# "# d"#puted +y t!e 1#t de-endant: Aord"ng to t!e 1#t de-endant t!erewa# an oral agreement +etween !"m and t!e 1#t pla"nt"-- t!at !e w"ll allow t!e pla"nt"--# to ont"nueto oupy t!e property #u+Eet to t!e 1 pla"nt"-- pay"ng a rea#ona+le amount a# rental dur"ng t!e"nter"m per"od and t!at t!e amount o- rental paya+le w"ll +e d"#u##ed and re#olved at t!e t"me o-t!e omplet"on o- t!e 1#t 4PA:

4u+#e=uently a #upplementary agreement to prov"de -or t!e e@ten#"on o- t!e omplet"on per"odo- t!e 1#t 4PA unt"l #u! t"me a# t!e +alane o- t!e loan wa# redued t!roug! mont!ly dedut"on#-rom t!e 1#t de-endant># #alary to a #um o- ;MB000:00 "n order to orre#pond to t!e amount o-


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t!e +alane o- t!e pur!a#e pr"e o- ;MB000:00 w!ereupon t!e pla"nt"--# w"ll pay to t!e 1#tde-endant t!e +alane o- t!e pur!a#e pr"e w"t!"n . t!ree5 mont!# -rom t!e date t!e 1#tde-endant !a# redeemed t!e propertyt!e 3new omplet"on per"od35 wa# duly dra-ted +y t!e lateMr: K!oo and e@euted +y t!e part"e# on 22 4eptem+er 12 P' "e #ome 1 one5 year and 1

one5 mont! a-ter t!e pla"nt"--# and t!e 1#t de-endant e@euted t!e 1#t 4PA:On 1' Ce+ruary 1( t!e late Mr: K!oo pa##ed away: ,!"# led to t!e !ange "n t!e name o- t!elegal -"rm o- Me##r#: Leong & K!oo to Me##r#: Leong & Leong t!e 2nd de-endant:

name# t!at t!e amount o- t!e loan out#tand"ng wa# "n t!e reg"on o- ;MB(000:00w!"! wa# le## t!an t!e pur!a#e pr"e and t!at t!e pla"nt"--#> urrent #ol""tor# 3may proeed tod"#!arge t!e !arge w!ereupon we #!all get our l"ent to e@eute a val"d and reg"#tra+le tran#-er-orm -or reg"#trat"on3: ,!e letter ended w"t! t!e -ollow"ng re=ue#t?


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3May we !ave your re#pon#e on a note o- urgeny plea#e:3


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ven/s a0/er /he 0i1ing o0 /he 21ain/i00s3 4ri/

On . Mar! 2000 t!e 1#t de-endant appl"ed un#ue##-ully v"de enlo#ure .5 to #tr"9e out t!epla"nt"--#> #u"t +e-ore t!e learned 4en"or A##"#tant ;eg"#trar: 6e !ad rel"ed on t!e ground# t!at "t "#-r"volou# ve@at"ou# and an a+u#e o- t!e proe## o- ourt pur#uant to 0 1B r 115 and/or 0 2 r )o- t!e ;ule# o- t!e 6"g! ourt 1B0:

On 1 4eptem+er 2000 t!e 1#t de-endant -"led !"# 4tatement o- 7e-ene and ounter$la"mdated 1' 4eptem+er 2000 enlo#ure 1(5 aga"n#t t!e pla"nt"--#: ,!e 1#t de-endant den"ed t!att!e property needed repa"r# +e-ore "t ould +e oup"ed +y t!e pla"nt"--#: ,!e 1#t de-endant !a#al#o rel"ed on an oral agreement +etween t!e pla"nt"--# and t!e 1#t de-endant to #u#pend t!eomplet"on per"od "n t!e 1#t 4PA upon t!e part"e# learn"ng t!at t!e +alane o- t!e 1#t de-endant>#loan #tood at ;M101B11:21 w!"! e@eeded t!e +alane o- t!e pur!a#e pr"e o- ;MB000:00unt"l #u! t"me a# t!e two amount# e=ual"Ged: # 4tatement o- 7e-ene and ounter$la"m: ,!e pla"nt"--# den"ed t!e 1#tde-endant># averment# and ma"nta"ned t!at t!ey are at all mater"al t"me# #t"ll "ntere#ted topur!a#e t!e property and t!at t!ey only vaated t!e property +eau#e t!e 1#t de-endant wantedto !arge t!em rental -or t!e"r oupat"on o- t!e property dur"ng t!e "nter"m per"od: ,!ey den"edt!at t!ey agreed orally to pay rea#ona+le rental to t!e 1#t de-endant -or t!e"r oupat"on o- t!eproperty dur"ng t!e "nter"m per"od:

On 2 4eptem+er 2000 t!e pla"nt"--# appl"ed -or #ummon# -or d"ret"on# -or t!e -"l"ng o- a l"#t o-doument# and an a--"dav"t ver"-y"ng t!e l"#t o- doument# +y +ot! part"e#: ,!e learned 4A; gavet!e d"ret"on# w!"! were duly ompl"ed w"t! +y t!e part"e#:

On 8 Mar! 2001 t!e -ull tr"al ommened:

On 21 Mar! 2001 t!e pla"nt"--# appl"ed v"de t!e"r #ummon#$"n$!am+er# enlo#ure .)5toget!er w"t! a ert"-"ate o- urgeny enlo#ure .(5 a# t!e -ull tr"al wa# adEourned to and 10May 2001 -or ont"nuat"on o- !ear"ng -or leave to amend t!e"r 4tatement o- la"m "n order to adda new paragrap! 10 to plead t!e e@"#tene o- t!e #upplementary agreement P' and to plead "nt!e renum+ered paragrap! 1) t!at t!ere wa# al#o no prov"#"on -or payment o- rental +y t!epla"nt"--# "n t!e #upplementary agreement P':


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+y t!e"r #ol""tor# and t!at t!ey only remem+ered "t#> e@"#tene w!en t!e"r #ol""tor# #u+poenaedM"## Kamala a# a w"tne## -or t!e tr"al and t!e #upplementary agreement P' wa# d"#overedupon ondut"ng a -"le #ear!:

On 10 Apr"l 2001 t!e ourt granted t!e pla"nt"--# order$"n$term# o- t!e"r appl"at"on:

4u+#e=uently on 1B Apr"l 2001 t!e pla"nt"--# -"led t!e"r Amended Fr"t o- 4ummon# and 4tatemento- la"m enlo#ure .85 w!"! onta"ned t!e new paragrap! 10 and t!e renum+ered andamended paragrap! 1):

On May 2001 t!e 1#t de-endant - "led t!e Amended 4tatement o- 7e-ene and ounter$la"m toadd a new paragrap! to adm"t paragrap! 10 o- t!e pla"nt"--#> Amended 4tatement o- la"menlo#ure .B5:

On t!e #ame day "e May 2001 t!e -ull tr"al ont"nued and t!e pla"nt"--# lo#ed t!e"r a#e a-terall"ng . w"tne##e# namely PF1 t!e 1#t pla"nt"-- PF2 t!e 2nd pla"nt"-- and PF. M"## Kamala:

On 18 July 2001 t!e 1#t de-endant># a#e ommened and ont"nued on t!e morn"ng o- t!e 1BJuly 2001 +ut "n t!e a-ternoon o- t!at date t!e ourt !ad to po#tpone "t to 1' to 18 January 2002+eau#e o- t!e ondut o- Mr: Kerpal 4"ng! t!e learned oun#el -or t!e 1#t de-endant "n

per#"#tently ra"#"ng t!e #ame "##ue on w!"! t!e ourt !ad already ruled "e t!e "##ue onern"ngw!et!er t!e 3w"t!out preEud"e3 ommun"at"on# +etween t!e urrent #ol""tor# o- t!e part"e#regard"ng t!e amount o- rental -or t!e durat"on o- t!e pla"nt"--#> oupat"on o- t!e property dur"ngt!e "nter"m per"od are adm"##"+le "n ev"dene e"t!er +y way o- doumentary ev"dene or oralev"dene at t!e tr"al: On 8 Mar! 2001 w!en t!e -ull tr"al ommened and w!en t!e 1#t pla"nt"--wa# ro##$e@am"ned +y Mr: Kerpal w!o wanted to re-er t!e 1#t pla"nt"-- to a letter mar9ed 3w"t!outpreEud"e3 Mr: ,!ev"n !ad o+Eeted on t!e ground t!at all orre#pondene# +etween t!e two#ol""tor# were made on a 3w"t!out preEud"e3 +a#"# t!at !e !ad made t!e #ame o+Eet"on +e-oret!e learned 4en"or A##"#tant ;eg"#trar t!at !"# o+Eet"on wa# allowed and t!at Mr: Kerpal d"d notappeal aga"n#t t!at de"#"on: < !ad allowed Mr: ,!ev"n># o+Eet"on: 4u+#e=uent to my rul"ng Mr:Kerpal !ad ra"#ed t!e #ame "##ue aga"n -or no le## t!an -our t"me#: ,!e ourt -ound t!e onduto- Mr: Kerpal 4"ng! t!e learned oun#el -or t!e 1#t de-endant ted"ou# and al#o an o+#trut"on o-t!e proe## o- Eu#t"e a# t!e tr"al ould not proeed #moot!ly:

Mr: Kerpal t!en wrote a long letter o- ompla"nt to Jame# Coong !eng Yuen J t!e t!en 4en"orJudge o- t!e


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t!e 1#t de-endant !a# opened !"# a#e: 4eondly t!ey !ave ot!er remed"e# #u! a# -"l"ng a#eparate #u"t aga"n#t t!e 1#t de-endant and t!e pla"nt"--#: la"m# aga"n#tt!e 2nd de-endant aro#e "n 1B and "# t"me$+arred +y v"rtue o- #et"on ( o- t!e L"m"tat"on At

1'.: ,!e 2nd de-endant !a# al#o ounter$la"med -or damage# "ntere#t o#t# and #u! -urt!erorder or rel"e- a# t!e ourt deem# -"t and Eu#t -rom t!e pla"nt"--# -or +e"ng wrongly made a party:

On 28 4eptem+er 200( t!e pla"nt"--# -"led t!e"r ;eply and 7e-ene to t!e 2nd de-endant>#4tatement o- 7e-ene and ounter$la"m enlo#ure 25: ,!e pla"nt"--# !ave den"ed t!e 2ndde-endant># averment#: Aord"ng to t!e pla"nt"--#> averment# pur#uant to #et"on o- t!eL"m"tat"on At 1'. t!e l"m"tat"on per"od "# 12 year# +eau#e t!e pla"nt"--#> la"m "# -or reovery o-land and alternat"vely t!e ( year# l"m"tat"on per"od under #et"on ( o- t!e L"m"tat"on At 1'. only+eg"n# to run -rom Apr"l 2001 w!en t!e #upplementary agreement P' wa# tendered to t!e ourt"n t!e our#e o- t!e tr"al:

On 2 January 2008 < wa# tran#-erred to t!e 4!a! Alam 6"g! ourt:

On 1B 4eptem+er 2008 t!e ourt o- Appeal allowed t!e appeal o- t!e propo#ed "ntervener# t!e

.rd to t!e 8t! de-endant# and granted t!em leave to "ntervene "n t!e#e proeed"ng#:On Oto+er 200 t!e .rd to t!e 8t! de-endant# -"led t!e"r 4tatement o- 7e-ene and ounter$la"m enlo#ure '5 to t!e pla"nt"--#> 4tatement o- la"m: ,!ey aver t!at t!e"r aveat !a# pr"or"tyover t!e pla"nt"--#> aveat +eau#e w!en t!ey entered "nto t!e 2nd 4PA w"t! t!e 1#t de-endantt!ey !ad no 9nowledge o- t!e pla"nt"--#> la"m to t!e property: ,!ey !ave g"ven not"e to t!epla"nt"--# to !ave t!e"r aveat removed: ,!ey pray t!at t!e pla"nt"--#> la"m +e d"#m"##ed: ,!ey al#oounter$la"med -or a delarat"on t!at t!e"r "ntere#t under t!e"r aveat !a# pr"or"ty over t!epla"nt"--#> aveat and t!at t!ey are ent"tled to +e reg"#tered a# t!e reg"#tered owner# o- t!eproperty an order t!at t!e pla"nt"--#> aveat +e removed t!at t!e pla"nt"--# do pay to t!em


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damage# to +e a##e##ed +y t!e 7eputy ;eg"#ter pur#uant to 0 .8 o- t!e ;ule# o- t!e 6"g! ourt1B0 o#t# and any ot!er rel"e- w!"! t!"# 6onoura+le ourt deem# -"t:

On t!e #ame date "e on Oto+er 200 t!ey al#o -"led t!e"r *ot"e and 4tatement o- la"maga"n#t t!e 1#t de-endant pur#uant to 01( r B o- t!e ;ule# o- t!e 6"g! ourt enlo#ure (5: ,!ey

are la"m"ng -or #pe"-" per-ormane o- t!e 2nd 4PA and damage# to +e a##e##ed +y t!e 7eputy;eg"#trar pur#uant to 0 .8 o- t!e ;ule# o- t!e 6"g! ourt 1B0 o#t# and any ot!er rel"e-deemed -"t +y t!"# 6onoura+le ourt: ,!ey rely on t!e ground# t!at t!ey !ad no 9nowledge o- t!epla"nt"--#> la"m to t!e property +e-ore t!ey e@euted t!e 2nd 4PA and t!at t!ey !ave lodged aaveat on 2' 4eptem+er 1 to protet t!e"r "ntere#t under t!e 2nd 4PA and al#o g"ven not"e tot!e pla"nt"--# to remove t!e"r aveat and t!at t!ey are at all t"me# ready a+le and w"ll"ng toomplete t!e pur!a#e o- t!e property:

On 1) Oto+er 200 t!e pla"nt"--# -"led t!e"r ;eply and 7e-ene to t!e 7e-ene and ounter$la"m o- t!e .rd to t!e 8t! de-endant# enlo#ure B5: ,!e pla"nt"--# den"ed t!at t!e .rd to t!e 8t!de-endant# d"d not !ave pr"or 9nowledge o- t!e pla"nt"--#> la"m +eau#e t!e 1#t pla"nt"-- !ad"n-ormed t!e .rd de-endant at a !ane meet"ng "n 4eptem+er 1 o- t!e pla"nt"--#> la"m undert!e 1#t 4PA: ,!e pla"nt"--# al#o averred t!at t!ey are not l"a+le to t!e .rd to t!e 8t! de-endant# "nre#pet o- t!e"r ounter$la"m "n re#pet o- t!e pla"nt"--#> aveat:

On 28 Oto+er 200 t!e 1#t de-endant -"led !"# 7e-ene to t!e 4tatement o- la"m o- t!e .rd tot!e 8t! de-endant# enlo#ure 10'5: ,!e 1#t de-endant averred t!at t!e .rd to t!e 8t! de-endant#are ent"tled to !ave t!e property tran#-erred to t!em +ut are not ent"tled to t!e"r ounter$la"m -or#pe"-" per-ormane and/or damage# +eau#e t!ey 9new t!at t!e pla"nt"--# !ave wrong-ullylodged t!e"r aveat a# t!e 1#t pla"nt"-- !ad already told t!e .rd de-endant t!at !e wa# no longer"ntere#ted to pur!a#e t!e property:

The .ase 0or /he 21ain/i00s

,!"# "# t!e a#e -or t!e pla"nt"--# a# #u+m"tted +y t!e learned oun#el -or t!e pla"nt"--#: ,!e 1#t4PA !a# not lap#ed at t!e t"me t!e letter 7 725 wa# "##ued on .1 Oto+er 18 +eau#e t!erewa# t!e #upplementary agreement P' w!"! #et# out t!e me!an"#m to e@tend t!e omplet"onper"od o- t!e 1#t 4PA:

,!e 2nd de-endant wa# negl"gent and t!ey al#o +rea!ed t!e"r ontratual duty to t!e pla"nt"--# "n"##u"ng t!e letter 7725 to t!e pla"nt"--# w"t! a opy to t!e 1#t de-endant: ,!e letter gave t!eopportun"ty to t!e 1#t de-endant to a+andon t!e 1#t 4PA and to enter "nto t!e 2nd 4PA to #ell t!eproperty to t!e .rd to t!e 8t! de-endant#:

,!e pla"nt"--# were allowed to move "nto and oupy t!e property rent -ree: ,!e pla"nt"--#ategor"ally deny t!at t!ey !ave agreed "n pr"n"ple to pay rental at a rea#ona+le #um to +eagreed upon +etween t!em and t!e 1#t de-endant upon t!e omplet"on o- t!e 1#t 4PA: ,!erea#on w!y t!e pla"nt"--# vaated t!e property "# +eau#e t!e 1# de-endant wanted to !arget!em rental -or t!e"r oupat"on o- t!e property and not +eau#e t!ey !ave a+andoned t!e"r"ntent"on to pur!a#e t!e property:

,!e pla"nt"--# #ay t!e .rd to t!e 8t! de-endant# are not legally ent"tled to #pe"-" per-ormane o-

t!e 2nd 4PA +eau#e t!e 1#t 4PA "# #t"ll val"d and #u+#"#t"ng +y v"rtue o- t!e #upplementaryagreement P':

The .ase 0or /he s/ de0endan/

,!"# "# t!e a#e -or t!e 1#t de-endant a# #u+m"tted +y !"# learned oun#el: ,!e pla"nt"--# !avea+andoned t!e"r "ntent"on to pur!a#e t!e property and t!u# !ave un"laterally re#"nded t!e 1#t4PA +y -a"l"ng to pay t!e +alane o- t!e pur!a#e pr"e o- ;MB000:00 to t!e"r #ol""tor# #o t!att!ey ould ta9e t!e nee##ary #tep# to omplete t!e 1#t 4PA w!"! wa# e@tended +y t!e#upplementary agreement P' and al#o +y vaat"ng t!e property and d"#mantl"ng and remov"ng


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all t!e"r eletr"al and ot!er -"tt"ng# "nlud"ng t!e dra"n over# -rom t!e property "n 4eptem+er1 alt!oug! t!ey !ave not !anded +a9 to t!e 1 de-endant t!e 9ey# to t!e property:

,!e 1#t de-endant allowed t!e pla"nt"--# to oupy t!e property #u+Eet to t!e payment o-rea#ona+le rental -or t!e "nter"m per"od: 6owever t!e 1#t de-endant d"d not #pe"-y t!e amount o-

t!e rental to +e pa"d +y t!e 1#t pla"nt"--: ,!e 1#t pla"nt"-- t!en propo#ed to t!e 1#t de-endant t!att!"# matter ould +e d"#u##ed and re#olved at t!e t"me o- t!e omplet"on o- t!e 1#t 4PA: ,!e 1#tpla"nt"-- !a# +een unrea#ona+le "n re-u#"ng to ome to an agreement a# to t!e amount o- t!emont!ly rental to +e pa"d +y t!e pla"nt"--# to t!e 1#t de-endant -or t!e oupat"on o- t!e propertydur"ng t!e "nter"m per"od: ,!e 1#t de-endant -urt!er #ee9# t!e order o- t!"# ourt to order t!epla"nt"--# to pay a rea#ona+le #um a# rental -or t!e per"od -rom Augu#t 11 to Augu#t 1 to +ea##e##ed +y t!e learned 4A;:

# a#e a# #u+m"tted +y t!e"r learned oun#el "# a# -ollow#?

,!e 2nd de-endant !a# not done anyt!"ng wrong and t!e #u"t wa# -"led +y t!e pla"nt"--# "n +ad-a"t!: ,!e rea#on# are +eau#e alt!oug! t!e letter 7725 !a# erroneou#ly #tated t!at t!e 1#t4PA !ad long lap#ed and !ad to +e reval"dated t!e letter wa# #ent +y A ; reg"#tered po#t to t!epla"nt"--# and a opy wa# al#o #ent to t!e 1#t de-endant: ,!e letter #tated learly t!at a-ter 2wee9# -rom t!e date o- t!e letter #!ould t!e part"e# -a"l or neglet to ome and #ee t!e 2ndde-endant to !ave t!e 1#t 4PA reval"dated t!e 2nd de-endant #!all treat t!e matter a# lo#ed:,!erea-ter ne"t!er t!e pla"nt"--# nor t!e 1#t de-endant went +a9 to #ee t!e 2nd de-endant #o t!e2nd de-endant on#"dered t!e matter a# lo#ed:

Curt!ermore t!e 2 de-endant wa# only added a# a party a-ter t!e pla"nt"--# !ave lo#ed t!e"r a#eaga"n#t t!e 1#t de-endant and a-ter t!e l"m"tat"on per"od o- #"@ year# "n re#pet o- a la"m -ordamage# !a# e@p"red "rre#pet"ve o- w!et!er t!e per"od ommene# -rom ' Augu#t 11 or 1'

Oto+er 18:

The .ase 0or /he 5rd /o /he 6/h de0endan/s

,!"# "# t!e a#e -or t!e .rd to t!e 8t! de-endant# a# wa# #u+m"tted +y t!e"r learned oun#el?

,!e aveat o- t!e .rd to t!e 8t! de-endant# !a# pr"or"ty over t!e pla"nt"--#> aveat +eau#e "t wa#lodged earl"er "n po"nt o- t"me and al#o w"t!out 9nowledge o- t!e pla"nt"--#> la"m under t!e 1#t 4PAand t!at t!ere-ore t!e pla"nt"--># aveat oug!t to +e removed #o t!at t!ey an omplete t!e 2nd4PA a# t!ey !ave pa"d to t!e 1#t de-endant a #um o- ;M11.00:00 +e"ng 10 depo#"t o- t!e newpur!a#e pr"e o- ;M 11.000:00 and anot!er #um o- ;M22(00:00 and are at all t"me# readya+le and w"ll"ng to pay t!e +alane o- t!e new pur!a#e pr"e amount"ng to ;M8800:00 to t!e 1de-endant t!roug! t!e"r urrent #ol""tor# a# #ta9e!older# #o t!at t!e tran#-er an +e reg"#tered "nt!e"r -avour:

The Tria1


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Page 11

,!e 2nd de-endant t!en alled one w"tne## namely 7r: Leong a# 7F.: ,!e 2nd de-endant d"dnot apply to t!e ourt to reall t!e pla"nt"--#> t!"rd w"tne## PF. -or purpo#e# o- ro##$e@am"nat"on:

,!e . to t!e 8 de-endant# alled one w"tne## namely t!e . de-endant a# 7F):

,!e tr"al onluded on 10 *ovem+er 200: Upon t!e re=ue#t o- all t!e part"e# t!e ourt grantedt!em leave to put "n t!e"r wr"tten #u+m"##"on# +y 1) 7eem+er 200 and -"@ed t!e a#e -orlar"-"at"on or de"#"on on 18 7eem+er 200: Un-ortunately t!e date !ad to +e vaated +eau#eall t!e part"e# ould not meet t!e datel"ne: < ree"ved t!e 1#t de-endant># wr"tten #u+m"##"on# on 27eem+er 200 and anot!er opy o- t!e #ame on 22 7eem+er 2005 t!e wr"tten #u+m"##"on#o- t!e .rd to t!e 8t! de-endant# on 1) 7eem+er 200 and anot!er opy on 1' 7eem+er 2005t!e pla"nt"--#> wr"tten #u+m"##"on# on 1' 7eem+er and anot!er opy on 1( 7eem+er 2005 t!e1#t de-endant># wr"tten #u+m"##"on$"n$reply to t!e pla"nt"--#> #u+m"##"on# on 1( 7eem+er andanot!er opy on 18 7eem+er 2005 and t!e 2nd de-endant># wr"tten #u+m"##"on# on 1(7eem+er 200 and anot!er opy on 2. 7eem+er 2005:

On 1 January 2010 < wa# tran#-erred to t!e Petal"ng Jaya 6"g! ourt:On 1 *ovem+er 2010 # loan a# "t #tood on 1' Oto+er 18 t!epla"nt"--# were ontratually +ound to pay t!e +alane o- t!e pur!a#e pr"e to t!e 2nd de-endantto ena+le t!e 2nd de-endant to redeem t!e property -rom t!e government and to reg"#ter t!etran#-er +ear"ng "n m"nd t!at "n"t"ally t!e 1#t 4PA ould not +e ompleted +eau#e t!e +alane o-t!e 1#t de-endant># loan wa# more t!an t!e pur!a#e pr"e:

,!e pla"nt"--# !ave g"ven #everal rea#on# -or t!e"r -a"lure to do #o:


13/31

Page 1.

$nd issue % 7he/her /he s/ de0endan/ did .harge ren/a1 0or /he 21ain/i00s3 o..u2a/ion o0 /he2ro2er/9 during /he in/eri 2eriod8

,!ere wa# #ome #er"ou# d"#pute on t!"# "##ue: *evert!ele## !av"ng !eard and on#"dered t!eev"dene o- +ot! t!e 1#t pla"nt"-- and !"# w"-e t!e 2na pla"nt"-- PF2 and t!e 1#t de-endant t!e

ourt +el"eved t!e 1#t pla"nt"-- w!en !e #a"d t!at t!e 1#t de-endant !ad allowed !"m to #tay "n t!eproperty w"t!out !av"ng to pay any rental: ,!e rea#on "# +eau#e t!e "rum#tane# pr"or to t!e1#t 4PA #!ow t!at t!e 1#t de-endant wa# learly de#perate to #ell t!e property to t!e pla"nt"--#:,!e property wa# vaant -or ' year# pr"or to t!e 1#t 4PA: 4o !e mu#t !ave +een very rel"evedand !appy w!en t!e 1#t pla"nt"-- ontated !"m to o--er to +uy !"# property: ,!"# mu#t +e t!erea#on w!y !e d"d not even !e9 w"t! t!e 6ou#"ng Loan# 7"v"#"on to -"nd out w!at wa# t!e+alane o- !"# loan "n Augu#t 11: ,!"# al#o e@pla"n# w!y t!e 1#t de-endant agreed to aeptonly a #um o- ;M1000:00 a# t!e depo#"t "n#tead o- a #um o- ;M000:00 w!"! "# 10 o- t!epur!a#e pr"e o- ;M0000:00: ondut "n vaat"ng t!e property #!ow# t!at t!ere wa# never any oral agreement+etween t!e pla"nt"--# and t!e 1#t de-endant -or t!e !arg"ng o- rental +y t!e 1#t de-endant -or t!epla"nt"--#> oupat"on o- t!e property dur"ng t!e "nter"m per"od: O- our#e t!e pla"nt"--# ouldrema"n on t!e property and -"g!t t!e matter out "n ourt +ut t!ey learly were not prepared to ta9e


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Page 1)

t!at r"#9: ,!at wa# w!y w!en t!ey wanted to remove t!e awn"ng w!"! t!ey !ad au#ed to +eereted on t!e property t!ey lodged a report -"r#t pre#uma+ly to protet t!em#elve# -rom anypo##"+le !arge o- !ou#e tre#pa## or !ou#e +rea9"ng and to #tate t!at t!ey are remov"ng "t+eau#e t!ey -ear t!at t!ey may not +e #ue##-ul "n t!e"r attempt to pur!a#e t!e property:

,!e 1 4PA and t!e #upplementary agreement P' al#o do not prov"de -or t!e !arg"ng o- rental+y t!e 1#t de-endant: "ntent"on to omplete t!e 1#t 4PA: ,!"# "# #o even t!oug!t!e 1 pla"nt"-- !a# te#t"-"ed t!at !e !a# made many attempt# to per#uade t!e 1#t de-endant toomplete t!e 1#t 4PA: ,!e ourt d"d not +el"eve !"# te#t"mony:

,!e rea#on# are a# -ollow#?


15/31

Page 1'

ranted t!at "n"t"ally t!e redempt"on #um wa# "n e@e## o- t!e pur!a#e pr"e a# #pe"-"ed "n t!e1#t 4PA +ut +ot! part"e# !ad #u+#e=uently agreed orally and t!e oral agreement wa#"norporated "n a -ormal agreement "e t!e #upplementary agreement P' to omplete t!e 1#t4PA upon t!e 1#t de-endant ont"nu"ng to pay -or !"# !ou#"ng loan +y way o- mont!ly dedut"on#

-rom !"# #alary unt"l #u! t"me w!en t!e redempt"on amount rea!e# a #um +elow t!e +alane o-t!e pur!a#e pr"e o- ;MB000:00: Dy agree"ng "n t!"# manner t"me wa# #et at large +y +ot!part"e#:

,!e ourt rule# t!at t!e 1#t 4PA !a# not lap#ed t!roug! e-lu@"on o- t"me +eau#e t!e pla"nt"--#ould not do anyt!"ng unle## and unt"l t!e 1 de-endant !ad o+ta"ned t!e redempt"on #tatement#tat"ng t!at t!e amount "# +elow t!e +alane o- t!e pur!a#e pr"e:

,!e ourt wa# #at"#-"ed t!at "t wa# t!e ontratual duty o- t!e 1#t de-endant to en#ure t!at upont!e !appen"ng o- t!at event !e would not"-y t!e pla"nt"--# and t!e pla"nt"--#> #ol""tor# #o t!at t!enee##ary #tep# ould +e ta9en -or t!e 1#t 4PA to +e ompleted: ,!e 1#t de-endant adm"tted "n!"# te#t"mony +e-ore t!e ourt t!at !e wa# never "n ontat w"t! t!e pla"nt"--# a-ter #"gn"ng t!e 1#t4PA and t!e #upplementary agreement P': Dy -a"l"ng to do t!"# t!e 1#t de-endant !a# learly+rea!ed t!e 1#t 4PA: *evert!ele## a# late a# Oto+er 18 t!e pla"nt"--# were told +y t!e"r own#ol""tor# t!e 2nd de-endant t!at t!e +alane o- t!e loan wa# ;MB((((:1( w!"! wa# learlyle## t!an t!e +alane o- t!e pur!a#e pr"e o- ;MB000:00: 4o t!e pla"nt"--# #t"ll !ad t!eopportun"ty to omplete t!e 1#t 4PA "- t!ey really wanted to: Un-ortunately t!ey were d"#trated+y t!e 1#t de-endant># demand t!at t!ey pay to !"m rental -or t!e pla"nt"--#> oupat"on o- t!eproperty dur"ng t!e "nter"m per"od at ;M'0:00 a mont!:

# duty to omplete t!e1#t 4PA upon -ull payment o- t!e +alane o- t!e pur!a#e pr"e o- ;MB000:00 +y t!e pla"nt"--#:

ranted t!at t!e pla"nt"--# only moved out o- t!e property w!en t!e 1#t de-endant renegaded on

!"# "n"t"al prom"#e to allow t!e pla"nt"--# to move "nto and oupy t!e property -ree o- !arge unt"l#u! t"me w!en t!e redempt"on amount !ad +een redued to an amount le## t!an ;MB000:00:Dut t!e pla"nt"--# d"d not!"ng to omplete t!e 1#t 4PA +e-ore or on 1' Ce+ruary 1B:


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Page 1(

part -rom t!e date o- t!e e@eut"on o- t!e 1#t 4PA to t!e t"me t!e 1#t de-endant e@euted t!e 2nd4PA and r"g!t unt"l t!e t"me o- t!e !ear"ng o- !"# la"m +y t!e ourt: ,!e rea#on "# +eau#e t!e 1#tpla"nt"-- already 9new w!en !e ree"ved t!e letter dated 1' Oto+er 18 -rom t!e 2nd de-endantt!at t!e +alane o- t!e 1#t de-endant># loan wa# ;MB((((:1( a# at 1 Oto+er 18:

,!ere-ore "t wa# ne"t!er nee##ary nor "mportant -or t!e 1#t pla"nt"-- to 9now w!at wa# t!e #umow"ng on 21 4eptem+er 1 +eau#e t!e 2nd de-endant># letter 7725 w!"! wa# #ent to t!e1#t pla"nt"-- #ome 21 twenty one5 mont!# earl"er wa# more t!an #u--""ent to alert t!e 1#t pla"nt"--to t!e -ollow"ng #al"ent matter#?$

3) t!at a# on 1 Oto+er 18 t!e +alane o- t!e 1#t de-endant># loan #tood at;MB((((:1( and t!at "t wa# already le## t!an t!e +alane o- t!e pur!a#e pr"e o-;MB:000:00

3) t!at t!ere wa# an oral agreement +etween t!e pla"nt"--# and t!e 1#t de-endant topo#tpone t!e omplet"on date w!"! wa# -ormal"Ged "n t!e #upplementaryagreement P' w!"! wa# not ment"oned "n t!e letter and t!at t!e long delay "n t!eomplet"on o- t!e 1#t 4PA wa# +eau#e t!e 1#t de-endant># loan wa# more t!an t!e

pur!a#e pr"e at t!e t"me o- t!e e@eut"on o- t!e 1#t 4PA and t!e 1#t de-endant!ad to pay !"# !ou#"ng loan "n#tallment# unt"l t!e +alane o- t!e loan wa# le## t!ant!e pur!a#e pr"e o- ;MB000:00

3) t!at t!e pla"nt"--# "- t!ey were #t"ll 9een to pur!a#e t!e property !ave to pay t!e#um o- ;MB000:00 to t!e 1#t de-endant t!roug! t!e"r #ol""tor# t!e 2ndde-endant a# #ta9e!older#

3) t!at t!e pla"nt"--# upon pay"ng t!e +alane o- t!e pur!a#e pr"e to t!e 2ndde-endant a# #ta9e!older# w"t! "n#trut"on# to d"#!arge t!e !arge and to pay t!ed"--erent"al #um to t!e 1#t de-endant an ommene proeed"ng# "mmed"atelyaga"n#t t!e 1#t de-endant -or #pe"-" per-ormane o- t!e"r ontrat w"t! t!e 1#tde-endant "n t!e event t!e 1#t de-endant re-u#e# to tran#-er t!e property to t!epla"nt"--# and

3) t!e"r "n#trut"on# t!e pla"nt"--# are prepared to engage new #ol""tor# to at on t!e"r

+e!al- "n order to ena+le t!e pla"nt"--# to per-orm t!e"r part o- t!e ontrat w"t! t!e1#t de-endant and to en-ore t!e ontrat aga"n#t t!e 1#t de-endant:

,!e ourt al#o agree# w"t! t!e #u+m"##"on# o- t!e learned oun#el -or t!e 1#t de-endant t!at t!epla"nt"--# are now no longer t!e party ent"tled to pur!a#e t!e property: # letter 7725t!e pla"nt"--# an +e #a"d to !ave repud"ated t!e"r ontrat w"t! t!e 1#t de-endant: ,!e 1#tde-endant an +e #a"d to !ave aepted t!e repud"at"on o- t!e ontrat +y t!e pla"nt"--# and !a#re#"nded t!e ontrat:

Alt!oug! t!e ourt +el"eved t!e ev"dene o- t!e 1#t pla"nt"-- t!at !e !ad removed all !"#+elong"ng# -rom t!e property +eau#e !e wa# a-ra"d t!at !e m"g!t lo#e !"# ourt a#e aga"n#t t!e1#t de-endant t!e ourt d"d not +el"eve !"m w!en !e #a"d !e #t"ll !ad t!e "ntent"on to pur!a#et!e !ou#e: ,!e rea#on "# +eau#e !e d"d not pay to !"# #ol""tor# t!e +alane o- t!e pur!a#e

pr"e at all mater"al t"me# +e-ore t!e 1#t de-endant #old t!e property a #eond t"me to t!e .rd tot!e 8t! de-endant#: ,!e ourt "# #at"#-"ed t!at t!e 1#t de-endant !a# #ue##-ully e#ta+l"#!ed t!att!e pla"nt"--# v"olated an e##ent"al term o- t!e ontrat +etween t!em and t!e 1#t de-endant w!"!re=u"red per-ormane on t!e"r part "e payment o- t!e +alane o- t!e pur!a#e pr"e:

,!e ourt rule# t!at t!e 1 de-endant wa# legally ent"tled to #ell t!e property to t!e .rd )t! 't!(t! and 8t! de-endant# and to e@eute t!e 2nd 4PA on 22 4eptem+er 1: ,!e 1#t de-endantwa# t!u# at l"+erty to ma9e a new ontrat w"t! t!e .rd )t! 't! (t! and 8t! de-endant# to #ellt!e property to t!em at a !"g!er pr"e +eau#e t!e property mu#t !ave appre"ated "n valuet!roug! t!e pa##age o- t"me: ,!e ourt rule# t!at t!e 2nd 4PA "# a val"d and +"nd"ng ontrat


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Page 18

+etween t!e 1#t de-endant and t!e .rd to t!e 8t! de-endant# -or t!e #ale and pur!a#e o- t!eproperty:


18/31

Page 1B

-ollowed +y t!e re#"##"on o- t!e ontrat +y t!e 1#t de-endant: Dot! t!e pla"nt"--# and t!e 1#tde-endant an al#o +e #a"d to !ave "mpl"edly a+andoned t!e"r "ntent"on to omplete t!e"r ontrat:

The 1a7

A+andonment o- a ontrat +y t!e ondut o- t!e part"e# to "t an ome a+out "n two way#: ,!"#wa# e@pla"ned +y Lord Drandon o- Oa9+roo9 "n Paal F"l#on & o A/4 v Partenreedere" 6anna!Dlument!al ,!e 6anna! Dlument!al %1B. 1 A B') at 1) A$ a# -ollow#?

3,!e onept o- t!e "mpl"ed a+andonment o- a ontrat a# a re#ult o- t!e ondut o- t!e part"e# to "t "#well e#ta+l"#!ed "n law? #ee !"tty on ontrat# 2.rd ed: 1(B5 vol: 1 p:'88 para 12.1 and a#e#t!ere "ted: F!ere A #ee9# to prove t!at !e and D !ave a+andoned a ontrat "n t!"# way t!ere are twoway# "n w!"! A an put !"# a#e:

,!e -"r#t way "# +y #!ow"ng t!at t!e ondut o- ea! party a# ev"ned to t!e ot!er party and ated on +y!"m lead# nee##ar"ly to t!e "n-erene o- an "mpl"ed agreement +etween t!em to a+andon t!e ontrat:,!e #eond met!od "# +y #!ow"ng t!at t!e ondut o- D a# ev"ned toward# A !a# +een #u! a# to leadA rea#ona+ly to +el"eve t!at D !a# a+andoned t!e ontrat even t!oug! "t wa# not "n -at +een D>#"ntent"on to do #o and t!at A !a# #"gn"-"antly altered !"# po#"t"on "n rel"ane on t!at +el"e-: ,!e -"r#tmet!od "nvolve# atual a+andonment +y +ot! A and D: ,!e #eond met!od "nvolve# t!e reat"on +y D o-a #"tuat"on "n w!"! !e "# #topped -rom a##ert"ng a# aga"n#t A t!at !e D !a# not a+andoned t!eontrat?Pearl ill Co. *td. +. ,v Tanner Co. *t%11 1 K:D:8B 3 emp!a#"# added5

At page 1'A$ Lord 7"plo9 added !"# own #omew!at more deta"led analy#"# o- t!e onept o-re#"##"on o- ontrat +y a+andonment a# -ollow#?

3< w"ll deal -"r#t w"t! a+andonment and "n do"ng #o and later "n deal"ng w"t! t!e o+l"gat"on# a##umed +yt!e part"e# under an ar+"trat"on lau#e "n a ommer"al ontrat < #!all u#e t!e e@pre##"on# 3pr"mary and#eondary o+l"gat"on#3 under a ontrat "n t!e #en#e t!at < u#ed t!em "n Photo Prod$ction *t. v.Sec$ricor Transport *td.%1B0 A:: B28 and "n Dremer Vul9an "t#el-: 4"ne < #!all +e deal"ng w"t!+"part"te #ynallagmat" ontrat# only < w"ll leave t!e adEet"ve# to +e under#tood w!enever < #pea9 o-3ontrat:3

A+andonment o- a ontrat 3t!e -ormer ontrat35 w!"! "# #t"ll e@eutory ":e: one "n w!"! atlea#t one pr"mary o+l"gat"on o- one or ot!er o- t!e part"e# rema"n# unper-ormed "# e--eted +y t!epart"e# enter"ng "nto a new ontrat 3t!e ontrat o- a+andonment35 +y w!"! ea! partyprom"#e# t!e ot!er to relea#e t!at ot!er party -rom -urt!er per-ormane o- any pr"mary o+l"gat"on#on !"# part under t!e -ormer ontrat t!en rema"n"ng unper-ormed +ut w"t!out #u! non$per-ormane g"v"ng r"#e to any #u+#t"tuted #eondary o+l"gat"on under t!e -ormer ontrat to paydamage#:


19/31

Page 1

to t!e Lat"n p!ra#e on#en#u# ad "dem and t!e word# t!at < !ave "tal""Ged are e##ent"al to t!eonept o- on#en#u# ad "dem t!e la9 o- w!"! prevent# t!e -ormat"on o- a +"nd"ng ontrat "nngl"#! law::::3 At page 1(A$ 6"# Lord#!"p ont"nued a# -ollow#?

3,!e rule t!at ne"t!er party an rely upon !"# own -a"lure to ommun"ate aurately to t!e ot!er party !"#own real "ntent"on +y w!at !e wrote or #a"d or d"d a# negat"v"ng t!e on#en#u# ad "dem "# an e@ampleo- a general pr"n"ple o- ngl"#! law t!at "nEur"ou# rel"ane on w!at anot!er per#on d"d may +e a #oureo- legal r"g!t# aga"n#t !"m: < u#e t!e +roader e@pre##"on 3"nEur"ou# rel"ane3 "n pre-erene to 3e#toppel3 #oa# to em+rae all "rum#tane# "n w!"! A an #ay to D? 3You led me rea#ona+ly to +el"eve t!at youwere a##um"ng part"ular legally en-orea+le o+l"gat"on# to me3 o- w!"! prom"##ory or 6"g! ,ree#e#toppel %Central *ondon Propert Tr$st *td. + -igh Trees -o$se *td.%1)8 K:D: 1.0 a--ord# anot!ere@ample w!erea# 3e#toppel3 "n t!e #tr"t #en#e o- t!e term "# an e@lu#"onary rule o- ev"dene t!oug!"t may operate #o a# to a--et #u+#tant"ve legal r"g!t# "nter parte# letter o- 7eem+er 12 18: F!ere t!e "n-erene t!at a rea#ona+leman would draw -rom t!e prolonged -a"lure +y t!e la"mant "n an ar+"trat"on proedure "# t!at t!ela"mant "# w"ll"ng to on#ent to t!e a+andonment o- t!e agreement to #u+m"t t!e d"#pute to ar+"trat"onand t!e re#pondent d"d "n -at draw #u! "n-erene and +y !"# own "nat"on t!erea-ter "nd"ated !"# ownon#ent to "t# a+andonment "n #"m"lar -a#!"on to t!e la"mant and wa# #o under#tood +y t!e la"mant t!e

ourt would +e r"g!t "n treat"ng t!e ar+"trat"on agreement a# !av"ng +een term"nated +y a+andonment: # delay doe# not o- "t#el-on-er any r"g!t on t!e re#pondent to all a !alt to t!e ar+"trat"on "t may lead to an "n-erene t!at t!e#u+m"##"on o- t!e d"#pute to ar+"trat"on !a# +een a+andoned +y mutual agreement and t!u# prevent t!ela"mant rev"v"ng t!e proeed"ng#: ,!e 4plend"d 4un %1B1 N:D: () "# an e@ample::: ,!e te#t "n myop"n"on "# not w!olly o+Eet"ve::: ,o ent"tle t!e #eller# to rely on a+andonment t!ey mu#t #!ow t!at t!e+uyer# #o onduted t!em#elve# a# to ent"tle t!e #eller# to a##ume and t!at t!e #eller# d"d a##ume t!at

t!e ontrat wa# agreed to +e a+andoned #u+ #"lent"o: ,!e ev"dene w!"! "# relevant to t!at "n=u"ry w"llon#"#t o- or "nlude? 15 F!at t!e +uyer# d"d or om"tted to do to t!e 9nowledge o- t!e #eller#: @luded-rom on#"derat"on w"ll +e t!e at# o- t!e +uyer# o- w!"! t!e #eller# were "gnorant +eau#e t!o#e at#w"ll !ave #"gnalled not!"ng to t!e #eller# and annot !ave -ounded or -ort"-"ed any a##umpt"on on t!e parto- t!e #eller#: 25 F!at t!e #eller# d"d or om"tted to do w!et!er or not to t!e 9nowledge o- t!e +uyer#:,!e#e -at# ev"dene t!e #tate o- m"nd o- t!e #eller# and t!ere-ore t!e val"d"ty o- t!e a##ert"on +y t!e#eller# t!at t!ey a##umed t!at t!e ontrat wa# agreed to +e a+andoned: ,!e #tate o- m"nd o- t!e +uyer#"# "rrelevant to a on#"derat"on o- w!at t!e #eller# were ent"tled to a##ume: ,!e #tate o- m"nd o- t!e#eller# "# v"tal to a on#"derat"on o- w!at t!e #eller# "n -at a##umed:3

aveatwa# entered on 2 4eptem+er 1:

,!e ourt rule# t!at t!e ondut o- t!e pla"nt"--# "e long per"od o- delay and "nat"v"ty on t!e"r parta# ev"ned toward# t!e 1#t de-endant !a# led t!e 1#t de-endant to rea#ona+ly +el"eve t!at t!e

pla"nt"--# !ave a+andoned t!e ontrat even t!oug! t!e pla"nt"--# #ay t!at "t wa# not "n -at t!e"r"ntent"on to do #o: 4"ne t!e 1#t de-endant !a# #"gn"-"antly altered !"# po#"t"on "n rel"ane on t!at+el"e- +y enter"ng "nto t!e 2nd 4PA w"t! t!e .rd to t!e 8t! de-endant# and t!e .rd de-endant d"d"n-orm t!e 1#t pla"nt"-- t!at !e !ad #"gned t!e 2nd 4PA w"t! t!e 1#t de-endant t!e pla"nt"--# nolonger !ad t!e r"g!t to enter t!e 2nd aveat:

,!ere-ore t!e ourt rule# t!at t!e pla"nt"--#> aveat oug!t to +e removed: ,!e pla"nt"--# are l"a+le "ndamage# to t!e 1#t de-endant and al#o to t!e .rd to t!e 8t! de-endant# -or !av"ng wrong-ullyaveated t!e property: ,!e damage# are to +e a##e##ed +y t!e learned 4en"or A##"#tant;eg"#trar:


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,!e ourt aord"ngly d"#m"##e# w"t! o#t# t!e pla"nt"--#> la"m aga"n#t t!e .rd to t!e 8t!de-endant# and allow# w"t! o#t# t!e ounter$la"m o- t!e 1#t de-endant and t!e .rd to t!e 8t!de-endant# aga"n#t t!e pla"nt"--# on t!"# "##ue:

=/h issue % 7he/her /he su*se>uen/ unregis/ered in/eres/ o0 /he 5rd; :/h;


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even t!oug! !e #a"d "n !"# ev"dene t!at !e d"d not #ee t!e not"e: ,!e ourt wa# o- t!e v"ew t!att!e 1#t pla"nt"-- wa# not tell"ng t!e trut! on t!"# matter: 4o t!e ourt d"#+el"eved t!e 1 pla"nt"-- w!en!e te#t"-"ed t!at !e d"d not #ee t!e not"e w!en !e drove pa#t t!e property:

An "ntere#ted +uyer t!e .rd de-endant 7F) re#ponded to t!e not"e: 6e went to "n#pet t!e

property: 7F2 let !"m "nto t!e !ou#e: 6e too -ound t!at t!e !ou#e wa# empty: ,!e pla"nt"--# !adremoved all t!e"r per#onal and !ou#e!old +elong"ng# -rom t!e property e@ept -or a +a+y># ot:Pr"or to 22 4eptem+er 1 w!"l#t t!e .rd de-endant 7F) wa# "n#pet"ng t!e !ou#e t!e 1#tpla"nt"-- ame along and among ot!er t!"ng# told t!e .rd de-endant 7F) t!at !e wa# no longer"ntere#ted to +uy t!e property: ,!e 1#t pla"nt"-- t!en d"#mantled and removed t!e lamp# -an##w"t!e# and dra"n over# -rom t!e property:

,!e ourt note# t!at t!e .rd de-endant !a# g"ven on-l"t"ng ev"dene onern"ng w!en wa# t!e-"r#t t"me !e -"r#t met t!e 1#t pla"nt"--: # ot -rom one o- t!e room#and le-t "t out#"de t!e !ou#e +eau#e t!e 1#t pla"nt"-- #a"d !e d"d not re=u"re "t:

On 2' 4eptem+er 1 a ne"g!+our "n-ormed !"m t!at #ome men !ad Eumped over t!e -ene o-t!e property and were remov"ng t!e awn"ng: ,!e .rd de-endant ru#!ed over and #aw t!e 1#tpla"nt"-- w"t! #ome men +el"eved to +e


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Page 22

!ave "n-ormed t!e .rd de-endant t!at !e wa# no longer "ntere#ted to pur!a#e t!e property: 6ewould not !ave removed t!e eletr"al and l"g!t -"tt"ng# and t!e dra"n over# -rom t!e property: A#a re#ult o- !"# ondut t!e .rd de-endant !one#tly +el"eved t!at t!e pla"nt"--# were no longer"ntere#ted "n pur!a#"ng t!e property: La#tly t!e 1#t pla"nt"-- would not !ave attempted on 2'

4eptem+er 1 to remove t!e awn"ng w!"! !e !ad au#ed to +e "n#talled on t!e property+ear"ng "n m"nd t!at !e only lodged !"# aveat on 2 4eptem+er 1 "e ) day# later: Crom t!eev"dene addued +y +ot! #et# o- pur!a#er# t!e pla"nt"--# on t!e one #"de and t!e .rd to t!e 8t!de-endant# on t!e ot!er #"de t!e ourt "# #at"#-"ed t!at t!e .rd to t!e 8t! de-endant# !ave a +ettere=u"ty +eau#e t!e .rd to t!e 8t! de-endant# !ave e#ta+l"#!ed t!at t!ere are #u--""ent"rum#tane# w!"! #!ow t!at t!e #u+#e=uent "ntere#t o- t!e .rd to t!e 8t! de-endant# oug!t tooverr"de t!e earl"er r"g!t o- t!e pla"nt"--#:

6av"ng #rut"n"Ged t!e ev"dene produed +y +ot! #"de# t!e ourt -"nd# t!at t!e .rd to t!e 8t!de-endant# 9new o- t!e e@"#tene o- t!e 1#t 4PA +etween t!e pla"nt"--# and t!e 1#t de-endant+e-ore t!ey e@euted t!e 2nd 4PA +ut t!e .rd to t!e 8t! de-endant# !one#tly +el"eved t!at t!epla"nt"--# were no longer "ntere#ted "n pur!a#"ng t!e property a# t!"# wa# told to t!e . de-endant+y t!e 1# pla"nt"-- !"m#el- +e-ore 22 4eptem+er 1 w!"! wa# t!e date t!at t!e .rd to t!e 8t!de-endant# e@euted t!e 2nd 4PA:

,!ere are al#o no averment# "n t!e pla"nt"--#> 4tatement o- la"m t!at t!e .rd to t!e 8t!de-endant# 9new t!at t!e pla"nt"--# "ntended to proeed w"t! t!e 1#t 4PA at t!e t"me t!e .rd to t!e8t! de-endant# entered "nto t!e 2nd 4PA w"t! t!e 1#t de-endant: ,!e ourt d"#+el"eved t!e .rdde-endant 7F) t!at !e only met t!e 1#t pla"nt"-- a-ter t!e 2nd 4PA wa# #"gned: ,!e ourtd"#+el"eved t!e ev"dene o- t!e 1#t pla"nt"-- at page 2( l"ne ) o- t!e note# o- ev"dene dated 22Oto+er 200 a# -ollow#? 3Ye# < !ave met t!e .rd de-endant: 6e "# an old per#on: < met !"m a-tert!e 1#t de-endant told me !e !ad entered "nto a #ale and pur!a#e agreement w"t! t!e .rdde-endant3: ,!e rea#on "# +eau#e t!e 1#t pla"nt"-- !a# al#o te#t"-"ed t!at !e !ad met t!e .rdde-endant +e-ore 22 4eptem+er 1 w!en !e went to t!e property to remove !"# +elong"ng#a-ter -"nd"ng out t!at t!e !ou#e !ad +een +ro9en "nto: ,!e ourt "# #at"#-"ed t!at t!e 1#t pla"nt"--!ad met t!e .rd de-endant at t!e property pr"or to t!e e@eut"on o- t!e 2nd 4PA and t!at !e wa#learly negl"gent "n -a"l"ng to at promptly and e@ped"t"ou#ly "n protet"ng !"# "ntere#t# under t!e1#t 4PA:

Crom w!at !a# +een #tated earl"er "t "# lear t!at t!e property wa# put up -or #ale and even w"t!t!"# 9nowledge t!e pla"nt"--# d"d not ta9e any #tep# to protet t!e"r e=u"ta+le "ntere#t under t!e 1#t4PA +y lodg"ng a aveat on t!e property: ,!e 1#t pla"nt"-- "n !"# ev"dene !a# adm"tted t!at !e nolonger re#"ded on t!e property a# -rom .1 7eem+er 18: ,!ere "# one -ator w!"! an au#et!e .rd to t!e 8t! de-endant# to lo#e t!e"r pr"or"ty:


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Page 2.

pur!a#e agreement and not t!e 1#t 4PA: ,!e .rd to t!e 8 de-endant# w!o are al#o now "noupat"on o- t!e property !ave pa"d a total o- ;M..:00:00 to t!e 1#t de-endant and are readya+le and w"ll"ng to pay t!e +alane o- t!e new pur!a#e pr"e to t!e 1#t de-endant:

,!e Maon ng"neer# 4dn D!d># a#e w!"! wa# "ted +y Mr: ,!ev"n "# d"#t"ngu"#!a+le on -at#:

appl"at"on to remove t!e pla"nt"--># aveat on t!e ground t!at t!e aveat mu#t rema"nto protet t!e "ntere#t o- t!e pla"nt"-- unt"l t!e #u"t -"led +y !"m aga"n#t t!e reg"#tered propr"etor#wa# -"nally d"#po#ed o-:

,!e a#e o- #g Kheng 'eow v Chiah h 1oo & 2rs%1B8 2 MLJ ..0 w!"! wa# "ted +y Mr:,!ev"n "# al#o d"#t"ngu"#!a+le -rom t!e "n#tant a#e +eau#e "n t!at a#e t!ere wa# no d"#pute ont!e -at#: ,!e )t! re#pondent pa"d t!e +alane o- t!e pur!a#e pr"e: ,!e d"#!arge o- t!e !argewa# duly e@euted and t!e t"tle deed wa# g"ven to t!e )t! re#pondent: ,!e 4upreme ourta--"rmed t!e de"#"on o- t!e learned 6"g! ourt Eudge and !eld t!at +y pay"ng t!e -ull pur!a#epr"e t!e )t! re#pondent w!o wa# t!e -"r#t pur!a#er !ad +eome t!e +ene-""al owner alt!oug!!e !ad lodged !"# aveat a-ter t!e #eond pur!a#er !ad lodged !"# aveat: ,!ere wa#t!ere-ore no aveata+le "ntere#t aga"n#t w!"! t!e #eond pur!a#er># aveat ould l"e:

On appeal t!e Cederal ourt a--"rmed !"# de"#"on and d"#m"##ed t!e de-endant#> appeal: "ll JMalaya5 o- t!e Cederal ourt !eld t!at t!e +a#" rule at law a# "n e=u"ty "# t!at e#tate# and"ntere#t# pr"mar"ly ran9 "n t!e order o- reat"on: 6e =uoted t!e lat"n ma@"m 3?ui 2rior es//e2ore 2o/ior es/ @ure3 w!"! mean# !e w!o "# earl"er "n t"me "# #tronger "n law:

+e!al-: Dut t!e pla"nt"--#> urrent #ol""tor# w!o ame "nto t!e p"ture "n January 1B al#o d"d notlodge a aveat on t!e t"tle to t!e property on +e!al- o- t!e pla"nt"--#:

A# -ar a# t!"# ourt "# onerned t!e letter dated 1' Oto+er 18 7725 an +e #a"d to +e awa9e up all to t!e pla"nt"--# to ta9e t!e nee##ary and appropr"ate mea#ure# "n re#pet o- t!e 14PA "- t!ey #t"ll !ad t!e "ntent"on to pur!a#e t!e property: ,!ey !ad to pay t!e +alane o- t!epur!a#e pr"e #o t!at t!e"r #ol""tor# an d"#!arge t!e !arge: ,!ey !ad to a#9 t!e 2ndde-endant w!y t!e 1#t 4PA !ad long lap#ed w!en t!ey !ad already entered "nto an oralagreement and al#o #"gned t!e #upplementary agreement P' w"t! t!e 1#t de-endant to #u#pendor po#tpone t!e omplet"on per"od o- t!e 1#t 4PA: Crom t!e ondut o- t!e pla"nt"--# "n not wr"t"ng=u"9ly or w"t!"n a rea#ona+le t"me to t!e 1#t de-endant e"t!er t!roug! t!e 2nd de-endant ort!roug! !"# new #et o- #ol""tor# a+out t!e 1#t 4PA and !"# "ntent"on to pay t!e +alane o- t!epur!a#e pr"e to ena+le !"# #ol""tor# to d"#!arge t!e !arge #o t!at t!e 1#t de-endant>##ol""tor# an pre#ent t!e memorandum o- tran#-er -or reg"#trat"on t!e 1#t de-endant annot +e-aulted -or arr"v"ng at !"# onlu#"on t!at t!e pla"nt"--# were no longer "ntere#ted to pur!a#e t!eproperty:


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Page 2)

,!ere-ore t!e ourt "# #at"#-"ed t!at t!e .rd to t!e 8t! de-endant# !ave a +etter e=u"ty and "twould +e unEu#t and "ne=u"ta+le -or t!e pla"nt"--# to "n#"#t t!at !"# pr"or e=u"ty +e en-ored +y t!eourt a# aga"n#t t!e .rd to t!e 8t! de-endant#:

,!e pla"nt"--# and t!e .rd to t!e 8t! de-endant# !ave la"med -or #pe"-" per-ormane o- t!e"r

re#pet"ve ontrat# aga"n#t t!e 1#t de-endant:

The 1a7

,!e law govern"ng #pe"-" per-ormane "n Malay#"a "# #tatutor"ly em+od"ed "n t!e 4pe"-" ;el"e-At 1'0: ,!e At onta"n# ela+orate prov"#"on# govern"ng t!e remedy o- #pe"-" per-ormane: 411 25 prov"de# t!at #pe"-" per-ormane may +e granted "n re#pet o- agreement# relat"ng toland tran#at"on# w!ere t!ere "# a pre#umpt"on t!at a +rea! o- a ontrat to tran#-er "mmova+leproperty annot +e ade=uately rel"eved +y ompen#at"on "n money:

4 2115 prov"de# t!at t!e Eur"#d"t"on to deree #pe"-" per-ormane "# d"#ret"onary and t!e ourt"# not +ound to grant any #u! rel"e- merely +eau#e "t "# law-ul to do #o +ut t!e d"#ret"on o- t!eourt "# not ar+"trary +ut #ound and rea#ona+le gu"ded +y Eud""al pr"n"ple# and apa+le o-orret"on +y a ourt o- appeal: ,!e ourt may e@er"#e a d"#ret"on "n grant"ng or w"t!!old"ng a

deree -or #pe"-" per-ormane "n t!e e@er"#e o- t!at d"#ret"on +a#ed on t!e "rum#tane# o-t!e a#e t!e ondut o- t!e part"e# and t!e"r re#pet"ve "ntere#t# under t!e ontrat are to +eremem+ered: 4ee 0anam d5o a!aman v Somoo s5o Sinnah%1B) 2 MLJ 20 at 28 C per4ea! CJ: 4ee al#o *oo Choo Teng v Cheo" Swee *ee%2000 2 MLJ 2'8 at 2() A per opal4r" ;am JA 26ford v Provana1B(B5 L; 2 P 1.' at 1'1 and*amare v 7i6on1B8.5 L; ( 6L)1) at )2.5:

,!ere are well e#ta+l"#!ed pr"n"ple# w!"! govern t!e e@er"#e o- t!e d"#ret"on +ut t!e#e l"9e alle=u"ta+le pr"n"ple# are -le@"+le and adapta+le to a!"eve t!e end# o- e=u"ty: 4ee Co4operative,ns$rance Societ *td v rgll Stores (-oldings) *td%1B A 1 %18 . All ; 28 at 2 6L5:

*ow "n a #u"t -or #pe"-" per-ormane a party treated and wa# re=u"red +y t!e ourt to treat t!e ontrata# #t"ll #u+#"#t"ng: 6e !ad "n t!at #u"t to allege and "- t!e -at wa# traver#ed !e wa# re=u"red to prove aont"nuou# read"ne## and w"ll"ngne## -rom t!e date o- t!e ontrat to t!e t"me o- t!e !ear"ng to per-ormt!e ontrat on !"# part: Ca"lure to ma9e good t!at averment +roug!t w"t! "t t!e "nev"ta+le d"#m"##al o- !"##u"t % #ee t!e d"tum o- Lord Dlane#+urg! "n Mama v 4a##oon 182 $ 2B5 ''


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#eem# "nvar"a+ly to !ave +een reogn"Ged and on pr"n"ple t!e"r Lord#!"p# t!"n9 r"g!tly t!at t!e

,!e


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Dy v"rtue o- lau#e 8 o- t!e 1#t 4PA w!"! deal# w"t! t!e de-ault o- t!e vendor "n t!e event o- any+rea! +y t!e vendor o- any o- t!e prov"#"on# o- t!e agreement and/or "n t!e event t!at t!evendor #!all -a"l to omplete t!"# tran#at"on -or any rea#on w!at#oever t!e pur!a#er #!all +eent"tled to t!e remedy at law -or #pe"-" per-ormane aga"n#t t!e vendor o- any term o- t!e

agreement:,!e pla"nt"--# !ave al#o +ene-"tted +y !av"ng +een a+le to enEoy rent$-ree oupat"on o- t!eproperty -or ( long year# de#p"te !av"ng pa"d only a nom"nal #um o- ;M 1000:00 a# depo#"t -ort!e pur!a#e o- t!e property:


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Page 28

A# #tated at t!e out#et o- t!"# Eudgment "n"t"ally t!"# #u"t wa# on-"ned +etween t!e pla"nt"--# andt!e 1#t de-endant: ,!e #u"t !a# proeeded to tr"al: Upon lo#"ng t!e"r a#e a-ter !av"ng alledt!ree w"tne##e# t!e pla"nt"--# appl"ed to t!"# ourt to +r"ng "n t!e 2nd de-endant a# a party:Pur#uant to an order -rom t!"# ourt g"ven on 1( June 200( t!e 2nd de-endant wa# added a# a

party to t!e#e proeed"ng#:,!e "##ue "# w!et!er t!ey an +e #ued "n t!"# matter:

6av"ng !eard and on#"dered t!e ev"dene addued +e-ore t!e ourt and t!e #u+m"##"on# o- andt!e aut!or"t"e# "ted +y t!e learned oun#el -or t!e 2nd de-endant t!e ourt "# o- t!e on#"deredv"ew t!at t!e 2nd de-endant "# not l"a+le "n damage# to t!e pla"nt"--# +eau#e o- t!e"r +rea! o-ontratual duty to t!e pla"nt"--# and al#o t!e"r negl"gene "n "##u"ng out t!e letter 7725 to t!epla"nt"--# w!"! au#ed t!e pla"nt"--# not to omplete t!e 1#t 4PA and "n t!e proe## re#ulted "n t!e1#t de-endant #ell"ng t!e property to t!e .rd to t!e 8t! de-endant# and t!at t!e #u"t +roug!t +y t!epla"nt"--# aga"n#t t!e 2nd de-endant oug!t to -a"l on t!e -ollow"ng ground#?

5) ,!e 1#t pla"nt"-- !a# te#t"-"ed t!at !e d"d not pay t!e +alane o- t!e pur!a#e pr"e to!"# #ol""tor# +eau#e t!e ler9 "n-ormed !"m t!at t!e 1#t de-endant !ad #topped t!e

ler9 -rom proeed"ng w"t! t!e tran#-er o- t!e !ou#e to !"m +ut t!e 1#t pla"nt"-- d"dnot all t!e ler9 onerned to te#t"-y: Curt!ermore !e al#o d"d not wr"te any letter tot!e 2nd de-endant to prote#t aga"n#t w!at t!e ler9 !ad told !"m

5) 6e t!en went to #ee M"## Kamala w!o "n-ormed !"m t!at t!e 1#t de-endant !ad anoral agreement w"t! t!e late Mr: K!oo not to proe## t!e tran#-er o- t!e !ou#e +utw!en M"## Kamala wa# alled to t!e w"tne## #tand a# t!e pla"nt"--#> .rd w"tne##PF. +y t!e pla"nt"--#> learned oun#el #!e wa# not a#9ed to on-"rm t!"# p"ee o-ev"dene

4) ,!e 1#t pla"nt"-- !a# al#o te#t"-"ed t!at !e !ad met M"## Kamala at t!e 2ndde-endant># o--"e and #!e !ad a#9ed !"m to #ee !er toget!er w"t! t!e 1#t de-endant#o t!at t!e 1#t de-endant w"ll agree to #ell t!e property to !"m +ut w!en M"##Kamala wa# alled to t!e w"tne## #tand a# t!e pla"nt"--#> .rd w"tne## PF. #!e wa#not a#9ed +y t!e pla"nt"--#> learned oun#el to ver"-y t!"# ev"dene o- t!e 1#t pla"nt"--

4) ,!e 1#t pla"nt"-- al#o te#t"-"ed t!at !e !ad a#9ed t!e 1#t de-endant to go to #ee M"##Kamala +ut !e re-u#ed: Yet no letter wa# ever #ent to t!e 1 de-endant +y t!e 2ndde-endant #u+#e=uent to t!e letter to orro+orate t!e ev"dene o- t!e 1#t pla"nt"--

4) ,!e 1#t pla"nt"-- al#o adm"tted t!at !e d"d not ta9e any at"on a-ter t!e 1#tde-endant># re-u#al to go to #ee M"## Kamala

1) A# pleaded +y t!e pla"nt"--# t!ere "# t!ere-ore no ev"dene w!at#oever to #!ow t!att!e 2nd de-endant># letter dated 1' Oto+er 18 7725 !ad re#ulted "n t!e 1#tde-endant re#"nd"ng t!e 1#t 4PA w"t! t!e pla"nt"--# +eau#e t!e 1#t de-endant onlyentered "nto t!e 2nd 4PA w"t! t!e .rd to t!e 8t! de-endant# #l"g!tly more t!an 2year# later

1) ,!e 1#t de-endant w!"l#t +e"ng ro## e@am"ned +y t!e learned oun#el -or t!epla"nt"--# #a"d t!at a-ter #ee"ng t!e letter dated 1' Oto+er 18 7725 -rom t!e2nd de-endant !e wa# #t"ll prepared to omplete t!e 1#t 4PA +ut "t wa# t!e pla"nt"--#w!o !ad delayed "n t!e omplet"on o- t!e 1#t 4PA: A# a re#ult o- t!e pla"nt"--#> longdelay t!e 1 de-endant entered "nto t!e 2nd 4PA w"t! t!e .rd to t!e 8t! de-endant#

1) A# -or t!e pla"nt"--# pr"or to amend"ng t!e"r 4tatement o- la"m ne"t!er "n t!e"r4tatement o- la"m w!"! ment"on# t!e oral agreement +etween t!e pla"nt"--# andt!e 1#t de-endant w!ere+y t!e pla"nt"--# were allowed to oupy t!e property rent-ree nor "n t!e w"tne## #tatement o- t!e 1#t pla"nt"-- made "n t!e -orm o- an a--"dav"tP( d"d t!e pla"nt"--# rely on 7725 a# t!e ma"n -ator w!"! ontr"+uted to t!e-a"lure on t!e part o- t!e 1#t de-endant to omplete t!e 1#t 4PA: Curt!ermore even


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a-ter lo#"ng t!e"r a#e t!e pla"nt"--# never addued t!e 2nd de-endant># letter7725 a# part o- t!e"r ev"dene to #upport t!e"r la"m aga"n#t t!e 2nd de-endant

1) Only a-ter amend"ng t!e"r 4tatement o- la"m a+out ' year# later d"d t!e pla"nt"--#ra"#e -or t!e very -"r#t t"me t!e e@"#tene o- t!e 2nd de-endant># letter 7725: ,!e

ourt agreed w"t! t!e #u+m"##"on# o- t!e learned oun#el -or t!e 2 de-endant t!att!"# learly #!ow# t!at t!e #u"t -"led +y t!e pla"nt"--# aga"n#t t!e 2nd de-endant wa#not only w"t!out mer"t# +ut wa# done mala -"de

10) ,!e 1#t pla"nt"-- upon +e"ng realled to t!e w"tne## #tand and w!"l#t under ro##e@am"nat"on +y t!e learned oun#el -or t!e 2nd de-endant #a"d t!at t!e 1#tde-endant wa# not "ntere#ted "n proeed"ng w"t! t!e 1#t 4PA: *evert!ele## w!"l#t+e"ng ro## e@am"ned +y t!e learned oun#el -or t!e .rd to t!e 8t! de-endant# t!e1#t pla"nt"-- al#o adm"tted t!at t!ere wa# no letter wr"tten +y !"m or +y !"# #ol""tor#to t!e 1#t and 2nd de-endant# to demand t!at t!ey ta9e "mmed"ate #tep# toreval"date t!e 1#t 4PA even a##um"ng -or a moment t!at w!at t!e pla"nt"--# #a"da+out want"ng to omplete t!e 1#t 4PA wa# true: Curt!ermore t!e 1#t pla"nt"-- andt!e 1#t de-endant !ave adm"tted w!"l#t under ro## e@am"nat"on t!at w!en t!e 1#t4PA wa# entered "nto +etween t!e part"e# t!e 2na de-endant !ad no 9nowledge t!at

t!e redempt"on #um wa# !"g!er t!an t!e pur!a#e pr"e a# #tated "n t!e 1#t 4PA: au#e o- at"on "# #tatute +arred +y v"rtue o-#et"on (o- t!eL"m"tat"on At 1'. +eau#e t!e pla"nt"--#> la"m aga"n#t t!e 2nd de-endant "# -ordamage# only: ,!e ( year# l"m"tat"on per"od ommened -rom 1' Oto+er 18w!en t!e 2nd de-endant># letter 7725 wa# "##ued and !ad e@p"red on 1' Oto+er

200. w!erea# t!e 2nd de-endant wa# only made a party to t!e#e proeed"ng# "n t!eyear 200( w!"! "# more t!an 2 year# a-ter t!e e@p"ry o- t!e ( year# l"m"tat"onper"od:


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3 A 3au#e o- at"on3 "# t!e ent"re #et o- -at# t!at g"ve# r"#e to an en-orea+le la"m t!e p!ra#eompr"#e# every -at w!"! "- traver#ed t!e pla"nt"-- mu#t prove "n order to o+ta"n Eudgment per Lord#!er M:;: "n ;ead v: Dorwn85: au#e o-

at"on> !a# +een repeatedly t!e #u+Eet o- de"#"on and "t !a# +een !eld part"ularly "n 6emp varland de"ded "n 1B). t!at t!e au#e o- at"on ar"#e# at t!e t"me w!en t!e de+t ould -"r#t !ave+een reovered +y at"on: ,!e r"g!t to +r"ng an at"on may ar"#e on var"ou# event +ut "t !a# alway# +een!eld t!at t!e #tatute run# -rom t!e earl"e#t t"me at w!"! an at"on ould +e +roug!t:3

la"maga"n#t t!e 2nd de-endant w"t! o#t#: # ounter$la"m aga"n#t t!epla"nt"--# t!e ourt "# #at"#-"ed t!at t!e 2nd de-endant !a# #!own on t!e +alane o- pro+a+"l"t"e#t!at t!e #u"t wa# -"led +y t!e pla"nt"--# "n +ad -a"t! and mal""ou#ly w"t! t!e "ntent"on and/ or mot"veo- damag"ng t!e 2nd de-endant># +u#"ne## w"t!out any rea#ona+le or proper au#e: ,!ere-oret!e ourt allow# t!e 2nd de-endant># ounterRla"m w"t! o#t# w"t! a date to +e -"@ed -ora##e##ment o- damage# +e-ore t!e learned 4en"or A##"#tant ;eg"#trar:

Con.1usion

oupat"on o- t!e property -rom Augu#t 11 to Augu#t 1 "e -or an order-or t!e removal o- t!e 2nd aveat and damage#: ,!e ourt al#o d"#m"##e# w"t! o#t# t!e 1#tde-endant># ounter$la"m aga"n#t t!e pla"nt"--# -or t!e !arg"ng o- rental -or t!e per"od o- t!epla"nt"--#> oupat"on o- t!e property -rom Augu#t 11 to Augu#t 1: ,!e ourt al#o d"#m"##e#t!e pla"nt"--#> la"m -or damage# and "ntere#t aga"n#t t!e 2nd de-endant w"t! o#t#: ,!e ourt al#oallow# w"t! o#t# t!e ounter$la"m o- t!e 2nd de-endant aga"n#t t!e pla"nt"--# -or damage# and


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"ntere#t: ,!e ourt al#o allow# w"t! o#t# t!e ounter$la"m o- t!e .rd to t!e 8t! de-endant# -or adelarat"on t!at t!e unreg"#tered "ntere#t o- t!e .rd to t!e 8t! de-endant# !a# pr"or"ty over t!epla"nt"--#> unreg"#tered "ntere#t a delarat"on t!at t!e .rd to t!e 8t! de-endant# are ent"tled to +ereg"#tered a# t!e propr"etor# on t!e t"tle o- t!e property and an order -or t!e removal o- t!e 2nd

aveat and damage# aga"n#t t!e pla"nt"--#: ,!e ourt -urt!er allow# w"t! o#t# t!e .rd to t!e 8t!de-endant#> la"m aga"n#t t!e 1#t de-endant -or a deree o- #pe"-" per-ormane o- t!e 2nd 4PA-or t!e tran#-er o- t!e owner#!"p o- t!e property to t!em and damage# #u+Eet to t!e -ollow"ngond"t"on#?

6) t!at t!e .rd to t!e 8t! de-endant# do pay t!roug! t!e"r #ol""tor# a# #ta9e!older# tot!e 1#t de-endant t!roug! !"# #ol""tor# a# #ta9e!older# t!e +alane o- t!e newpur!a#e pr"e o- ;M8100:00 w"t!"n . t!ree5 mont!# -rom t!e date o- t!"#

Eudgment or w"t!"n a per"od o- . t!ree5 mont!# -rom t!e date t!e"r #ol""tor# ree"vet!e redempt"on #tatement and underta9"ng# -rom t!e M"n"#try o- C"nane w!"!everdate t!at "# earl"er w"t! l"+erty to apply to t!e ourt -or an e@ten#"on on rea#ona+leground# and

6) 5 "n t!e event t!at t!e .rd to t!e 8t! de-endant# -a"l to omply w"t! t!e a+ove

ond"t"on# t!e 1#t de-endant "# at l"+erty to apply to !ave t!e deree o- #pe"-"per-ormane d"#!arged and t!e ontrat term"nated and to +e awarded damage#"ntere#t and o#t# -or +rea! o- ontr####:

C"nally t!e ourt order# t!at damage# are to +e a##e##ed +y t!e learned 4en"or A##"#tant;eg"#trar toget!er w"t! "ntere#t at B per annum -rom t!e date o- t!e -"l"ng o- t!e"r ounter$la"maga"n#t t!e pla"nt"--#:


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yeong oon kong & anor v lee chu ming and ors

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