Nature and Application of the Law of Property

Goh Chong Hin & Anor. v

The Consolidated Rubber Estates Ltd

(1924-25) 5 FMSLR 86

26 April 1921 - Goh Chong Hin charged his land including buildings and factory to SRMS Lechman Chetty

25 June 1921 – Goh Chong Hin executed Bill of Sale over the machinery in the factory to The Consolidated Malay Rubber Estates Ltd.

25 October 1923 – Lechman Chetty by the consent of Goh Chong Hin took possession of the land and the factory.

31 December 1923 - The Consolidated Malay Rubber Estates Ltd applied for order to seize and sell the machinery by virtue of the Bill of Sale.

Brief facts

- The trial judge decided in favour of The Consolidated Malay Rubber Estates Ltd.

- This decision was appealed.

1) Whether English law of fixture is applicable in these FMS.

- S.2 Registration of Titles Enactment- S.5(d) NLC all things attached to the

earth or permanently fastened to anything attached to the earth.

- the definition does not clarify whether an article is a fixture or chattel.

Sproule J :

“…the legislative of these states has already…declared as its policy the adoption of English law in this matter…”

“…that we are to apply in this country the ordinary English law of fixtures”

English law of fixtures applies in Malaysia.

2) Whether the machinery was a fixture, therefore part of the land.

- Machinery affixed to earth (by bolts and nuts) becomes a fixture and part of land. [degree of annexation]

- Furthermore, the machinery was set up with the object to enhancing the value of the land and purpose for which it existed. [object of annexation]

3) Right to remove fixture (as claimed by the Rubber Estates)

A charge of premise will pass the fixtures to the chargee as part of the land. This is also for fixtures attached to the land after the date of the charge unless it is otherwise provided.

Judgment by trial court was reversed and the appeal was allowed.