RESTRAINT ON DEALINGSLAND LAW II

DEFINITION - RESTRAINT ON DEALINGS

KEYWORD - PREVENTING

▸ Prevent dealings in the respective land from being carried out/registered at the land office.

▸ To protect the interest of the unregistered proprietor pending the finalisation of registration/settlement of disputing claims in court.

▸ Preserving the status quo of the respective parties.

TYPES - RESTRAINT ON DEALINGS

KEYWORD - 2 TYPES

Types - 1. Caveat 2. Prohibitory Order ‣ Available in the NLC. ‣ However, there are other types which is not listed in the

NLC and must be applied to court . Types - 1. Lis Pendens 2. Injunctions

‣ Not registered in the D.O.T.

LIS PENDENS

KEYWORD - PENDING LITIGATION‣ A Latin term - Pending a suit. ‣ Written notice given to owner of land that a lawsuit has been filled

concerning the title/ interest to the property. ‣ Freezes the immovable property as long as the litigation has not decided yet

by the courts/still pending. ‣ Lis pendens granted based on S.25(2) & Para 6 Schedule 1 of CJA. ‣ So as long as the title was being litigated, parties involved are not incapable

to alienate the land. ‣ If so, amounting to defeasible of title/ frustration on the judgment - T

Damodaran v Choe Kuan Him ‣ Bellamy v Sabine - The land being transferred even there’s a dispute still

pending will only obtain defeasible title. ‣ Since it is not listed under NLC, Registrar/under any order from court - not

required to give effect to an obtain of Lis Pendens @ Section 417 NLC

INJUNCTION

KEYWORD -‣ To preserve the status quo of parties pending the settlement. ‣ Governed under Section 50 of SRA. ‣ Available to caveator & even caveat is removed, injunction may be

available to the caveator - Tan Lay Soon v Kam Mah Theathre S.B ‣ Cannot be lodged/endorsed in the DOT. ‣ Heng Bak Teong & Anor v Ng Ah Seng & Anor, Injunction is a

preventive relief and only granted at the discretion of the court. Thus, Registrar should not register it as a prohibitory order on the DOT.

‣ Since the SRA not provide the injunction to be endorsed in the DOT, thus it does not accord a statutory protection of the purchaser’s interest.

CAVEATS

‣ Protects a claim to an existing unregistered but has a registrable title in land until the conflict resolved.

‣ Has the effect of preserving the status quo & suspends any dealings until the matter is over.

‣ Does not enhance the caveator’s interest/claim to an interest of land. ‣ Woon Kim Poh v Sa’amah bte Hj Kasim, so long as teh caveat is registered,

endorsement/entry on the register DOT is prohibited. ‣ Caveatees are precluded from dealing with the land so as long as the caveat has not

been removed. ‣ Macon Engineers S.B v Goh Hooi Yin, Sect 322(2)(a) has the effect of prohibiting any

dealings to be taken by/ on behalf of the proprietor. It helps to protect the interest of the caveator.

‣ Basically, it does preserve the status quo & to restrain any dealings from occurring upon the land - ‣ Butler v Fairclough & Anor ‣ Chin Cheng Hong v Hameed & Ors ‣ Temenggong Securities Ltd & Anor v Registrar of Tiles of Johor & Ors

‣ Haroon bin Guriaman v Nik Mah binte Nik Mat & Anor - When competing equities arise, the court will only look on who has more/better priority over the other.