LAND 2 SEM I 0405


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LAND 2 SEM I 0405

  1. 1. END-OF-SEMESTER EXAMINATION SEMESTER I, 2004/2005 SESSION AHMAD IBRAHIM KULLIYYAH OF LAWS Programme : Bachelor of Laws Level of : Third Study Reading Time : 3.00 p.m. – 3.15 p.m. Date : 22.10.2004 Duration : ( 15 minutes ) Answering Time : 3.15 p.m. – 6.15 p.m. Section(s) : All Sections Duration ( 3 hours ) Course Title : Land Law II Course Code : LAW 3111 This Question Paper Consists of 6 Printed Pages With 6 Questions. INSTRUCTIONS TO CANDIDATES DO NOT OPEN UNTIL YOU ARE ASKED TO DO SO. Answer FOUR (4) questions only. REFERENCES ALLOWED National Land Code 1965 Land Acquisition Act 1960 Strata Titles Act 1985 Malay Reservation Enactments Any form of cheating or attempt to cheat is a serious offence which may lead to dismissal Statutes should be free from any form of annotation. APPROVED BY
  2. 2. 2 QUESTION 1 On 1 May 1994, Wany entered into a sale and purchase agreement to sell his land to Pat. Pat paid 10% of the purchase price as a deposit. The balance was to be settled within three months from the date of the sale and purchase agreement. Wany undertook to surrender the IDT together with an executed memorandum of transfer upon being fully paid. On 10 May 1994, Watson Sdn. Bhd. entered a private caveat against Wany’s land on the ground that Wany had borrowed money from it and had failed to repay the loan. Unknown to Pat and Watson Sdn. Bhd, Wany had also, on 20 May 1994, deposited the IDT of the land to Tat to secure a loan. Tat did not bother to enter a lien holder’s caveat against the land. On 21 May 1994 Pat entered a private caveat against Wany’s land. Meanwhile, pursuant to an application made by the Inland Revenue Department, the Registrar entered a Registrar’s caveat against Wany’s land on behalf of the State government. Tat has come to see you. He tells you that Pat has instituted an action against Wany for specific performance of the sale and purchase agreement. He also tells you that Wany has failed to repay the loan to him and that he intends to take legal action to recover the loan. Advise Tat as to the proper legal action to be taken in order to protect his rights over the land. Support your advice with reference to decided cases. (15 marks)
  3. 3. 3 QUESTION 2 The Opposition Members of Parliament acknowledged that the Land Acquisition Act 1960 suffers from many weaknesses and defects. You are appointed by the government as a member of a Commission to address the current situation of shortcomings in the said Act. Write a report giving suggestions indicating how you would overcome these weaknesses. (15 marks) QUESTION 3 Kamal is the registered owner of a piece of property comprising of a shop house in Klang, Selangor. On 1/1/99, he applied for a term loan of RM100,000 from CT Bank, repayable in monthly installments of RM1,000 over a period of 5 years. CT Bank agreed to grant the loan subject to a first party legal charge over the property. The said charge was registered on 1/2/99. CT Bank released the term loan of RM100,000 to Kamal on 1/3/99. On 1/4/99, Kamal applied for an overdraft facility of RM50,000 from CT Bank. CT Bank approved the overdraft facility repayable on demand subject to a second charge over the same property. CT Bank’s solicitor, Messrs. Lupa & Co. prepared the charge documents for the RM50,000 overdraft facility. It turned out that the solicitor did not present the second charge documents for registration with the land registry. CT Bank was unaware
  4. 4. 4 about this problem and thus allowed Kamal to draw on the overdraft facility up to RM40,000. In January 2000, Kamal defaulted the payment of the monthly installment in respect of the term loan of RM100,000. On 14/2/2000, CT Bank issued a notice under Form 16D of the National Land Code demanding the whole balance of the term loan and the overdraft facility. CT Bank had been aware that the second legal charge was not registered in their favour when they issued the Form 16D. Kamal did not settle the said term loan and overdraft facility. On 1/4/2000, CT Bank made an application to the High Court for an order for sale of the property under section 256 of the National Land Code in respect of both the balance outstanding under the term loan and the balance due under the overdraft facility. The application was served on Kamal who now intends to oppose the application. Advise Kamal. Support your answer with reference to decided cases. (15 marks)
  5. 5. 5 QUESTION 4 (a) Cheng had obtained judgement against Ah Sun and Tung for the sum of money owed by both of them to him. Cheng learns that Tung owns a few pieces of land. Cheng would like to seek your opinion as to whether he can use the judgement order to force Tung to sell properties to settle off the debt owed to Cheng. Advise Cheng. (6 marks) (b) Differentiate between Prohibitory Order, injunction and lis pendens. (9 marks) QUESTION 5 The definition of ‘Malay’ under the Malay Reservation Enactments in Malaysia varies from one state to another. As a result, one may find difficulty in understanding who is a Malay. For example, the definition of ‘Malay’ in Kelantan seems to be restrictive in nature and to a certain extent, curtails the right of the Malays in dealing with their property. Discuss the above viewpoint and support your answer with reference to decided cases. (15 marks)
  6. 6. 6 QUESTION 6 The law on Malay Reserve Land has been amended in order to give more room for the Malays to deal with their Malay Reserve lands. In the light of the above statement, discuss and compare the latest changes in the law with the earlier provisions of the Malay Reserve Enactments thus indicating whether future changes are necessary. (15 marks)