LL1 tutorial questions DEFINITION OF LAND

QUESTION 1“I have no doubt that we are to apply in this country the ordinary English law of fixtures” (per Sproule, CJC in Goh Chong Hin & Anor v The Consolidated Malay Rubber Estates Ltd. [1929] 5 FMSLR 86). With reference to the above case, explain why the courts in Malaysia should apply the English law of fixtures in determining whether a thing is to be taken to be a fixture or a chattel.

(5 marks)QUESTION 2Where the removal of a thing attached to land will cause ‘irreparable damage’ to the land, it strengthens the presumption that the thing is to be taken to be a fixture. Discuss the application of the ‘damage factor’ under the law of fixtures with reference to at least one decided case.

(5 marks)

QUESTION 3In August 2010, Mayang Sari executed a charge in favour of Baba Bank, secured upon a piece of land in Port Klang. This land is a rubber estate. The land as stated in the charge was to carry with it the store, factory, bungalow and several houses erected thereon. Two months later, Mayang Sari had replaced the old machine in her factory with a new one. The new machine was bought from Gelora (M) Sdn. Bhd. (hereinafter referred to as ‘Gelora’) under a hire-purchase agreement for RM100,000. Out of a total sum of RM100,000.00 a sum of RM50,000.00 is still owing to the company from Mayang Sari .

Mayang Sari subsequently had difficulty in complying with the terms of the charge. Baba Bank is contemplating to apply for an order from the court to auction the said property. Gelora came to know about this and immediately informed Baba Bank not to include the machine in their application to the court. Gelora claims that they still retain the ownership of the machine because of the unpaid balance of the purchase price. Baba Bank disagreed and claimed that the machine, which is affixed to the floor by bolts, is a fixture and forms part of the land and has accordingly passed as security to them along with the premise, giving them priority as legal chargee.

Advise Gelora whether it is able to claim the machine with reference to the National Land Code 1965 and decided cases.

(10 marks)