MALAYSIA LAND LAW- REGISTRAR CAVEAT

1. ILYANA ISKANDAR
REGISTRAR’S CAVEAT
 specific type of caveat where power to enter caveat lies with Registrar.
1) NATURE AND SCOPE
a. to protect and inhibit (Menghalang) dealings with land.
b. does not create or enhance any existing claim to title or interest or give rise to any claim
to title or interest
c. Whether Registrar has discretion to enter caveat or refuse entry of Caveat?
i. AR. PL. Palaniappa Chettiar v PL. AR. Letchumanan Chettiar & Anor - discretion is
with Registrar as to whether to enter a caveat. (must be exercised judiciously
and reasonably without any element of mala fide (bad faith)).
2) REGISTRARS POWERS
a. RC entered in circumstances specified in S.320(1) NLC whenever it appears necessary
or desirable to Registrar.
b. Registrar performs quasi-judicial function
c. Lim Ah Hun v Pendaftar Hakmilik Tanah, Pulau Pinang & Anor - Court can remove RC if
entry is misleading and no longer necessary or desirable.
d. Can Court order Registrar to enter caveat pursuant to s.417(1) NLC?
i. S. 417 (1) NLC - court may make an order directing Registrar or LA to do all
such things .
ii. Palaniappa Chetty v Letchumanan Chetty - have no jurisdiction to order entry of
RC since Registrar was not made a party to proceedings
iii. Seet Soh Ngoh v Venkateswara Bhd - power to order Registrar to enter RC since
Registrar was before court.
iv. prudent to include Registrar as a party to action, however no provisions in NLC
preventing or restricting courts powers if it deems just to order Registrar.
v. HC –Ct has powers pursuant to s.417(1) NLC to order Registrar to enter RC
pursuant to s.320 NLC for prevention of fraud, or improper dealings, whether or
not Registrar is a party to proceedings
vi. Tan Soo Bing v Tan Kooi Fook (decision in the above cases were overruled) - If
registrar refuses his application, his remedy is to appeal to court against such
refusal. He cannot go straight to court.
vii. Under S.418 NLC - court may reverse decision of Registrar and direct him to
enter RC.
viii. aggrieved party cannot disregard appeal provisions under S.418 and go to High
Court for an order that Registrar enters a RC.
ix. court can only direct Registrar to enter RC if court do not agree with decision of
Registrar when exercising the appellate jurisdiction under S.418 NLC.”
3) S.319(1)(b) - Effect of Registrars Caveat is to prevent:
a. Any Dealings on disputed land
b. Claim for tenancy exempt from registration on disputed land
c. Entry of a Lien-Holders caveat on disputed land.

2. ILYANA ISKANDAR
i. retrospective effect - effect of preventing registration of any dealing, which was
presented for registration and yet to be registered when RC was entered.
ii. not have any effect on a prior registered dealing.
iii. Temenggong Securities Ltd. v Registrar of Titles –
iv. MUI Finance Bhd. v Pendaftar Hakmilik Shah Alam & Anor –
4) S.320(1) - CIRCUMSTANCES WHERE REGISTRARS CAVEAT CAN BE ENTERED
a. can be entered in respect of any land wherever it appears to Registrar to be
necessary or desirable.
i. for the prevention of fraud or improper dealing;
ii. for protecting interests of the followings:
iii. (i) federation or State Authority
iv. (ii) any person under:
- disability of minority; or
- mental disorder or unsound mind; or
- absent from the Federation
v. (ba ) to restraint the land from being dealt with in order to ensure that
the land is available to satisfy the whole or any part of debt due to the
Federation or the State Authority, irrespective if judgment has been
obtained or nor
vi. due to an error on the register document of title to land or any related
instrument
b. S 320 (1)(a) NLC - Prevention of Fraud or Improper Dealing
i. Registrar does not have to take part in any examination of severity of
fraud or improper dealing
ii. evidence that raises suspicion of such dealing, should be adequate for
Registrar to decide to enter RC.
iii. must make adequate inquiries but not required to make a decision that
alleged act of fraud has actually been committed.
iv. CAVEATING ONE’S OWN LAND
1. Landowner is prohibited from caveating own land, unless can
show existence of an interest to that arising beyond legal
proprietorship.
2. This is difficult to prove
3. However, in instances where IDT to land is lost or stolen owner
since cannot enter a Private Caveat can apply to Registrar to
enter a RC for prevention of fraud or improper dealings

3. ILYANA ISKANDAR
a. Eu Finance Berhad v Siland S.B.& (M&J) Frozen Food S.B. –
As a registered proprietor may not apply for a private
caveat on his own land
b. Boonsom Boonyanit v Adorna Properties - Mdm Boonsom
sought entry of a Registrar’s Caveat where she complained
that her title had been used with a forged transfer to
obtain the registration of Adorna Prop.
c. Ss-320(1)(b)(i) NLC provides that interest of Federation or SA can be protected
using RC
i. Registrar usually enter a caveat even before an interest in land in favour
of Federation or State Authority arises.
1. Temenggong Securities Ltd. v Registrar of Titles - registrar entered
a Caveat to protect interest of IRD in respect of a claim for unpaid
income tax. Privy Council - interests, which can be protected are
those ‘in land that are recognised by NLC as being either
registerable or otherwise entitled to protection. interest must be
proprietary as such an unsecured creditor of proprietor of land
has no such interest in the land. Caveat must be removed because
interest did not represent an interest in land.
ii. Government dissatisfied with decision in Temenggong Securities inserted
sub-sec (ba)
1. In circumstances where debt is unsecured or judgment has yet to
be obtained against registered proprietor, Govt reserves right to
apply to enter a RC to prevent dealing with caveated land prior to
settlement of Government’s claim.
2. Effect of RC entered by govt
a. Though Registrar is permitted to enter caveat on behalf of
Govt, caveat will not have effect of overriding interests of
existing interest holders.
b. Thus prior registered chargee’s rights will never be
affected by subsequent entry RC on behalf of Govt.
c. MUI Finance Bhd. v Pendaftar Hakmilik Shah Alam & Anor
–
3. S.320(1)(b) NLC - Who can apply for RC
a. Federation or State Authority
b. any person under the

4. ILYANA ISKANDAR
i. disability of minority
1. Age of Majority Act 1971 (Act 21) provides
in S.2 that age of majority is 18 years old.
ii. mental disorder or unsound mind
1. Mental Disorders Ordinance 1952.
iii. absent from the Federation.
5) S.321 NLC - Entry of RC
a. Form 19F, endorsed & sealed by Registrar
6) S.321(3) NLC - Duration
a. No fixed duration or specific life span for RC
b. continue in force until cancelled by Registrar.
c. RC does not lapse with the effluxion (luput) of time.
7) s.321(2) NLC - Once RC entered - serve notice on registered proprietor in Form 19A
8) REMOVAL OF REGISTRARS CAVEAT
a. RC continue in force until cancelled by Registrar
i. S.321(3)(a) - of his own motion
1. can remove caveat when he is of view that there is no need for
caveat to remain as it has served its’ purpose.
ii. S.321(3)(b)- application by proprietor of caveated land
1. Registered proprietor (Caveatee) of land, upon receiving Notice of
Entry of Caveat Form 19A can apply to Registrar to remove
caveat.
a. Registrar can remove or reject application for removal.
b. Registrar removes RC, matter will be resolved
c. Registrar refuses to remove RC, Caveatee can appeal to
Court against decision of Registrar not to remove RC.
d. registered proprietor is required to appeal to High Court
within 3 months from time of communication of decision
of Registrar rejecting the application to remove Registrars
Caveat
iii. S.321(3)(c) - pursuant to Court Order.
1. Caveatee, can appeal against decision of Registrar not to remove
caveat pursuant to S.418.
2. Any other person who is not registered proprietor but aggrieved
by decision of Registrar must appeal to H Ct within 3 months from
date on which decision was communicated to him.
a. Removal of Registrars’ Caveat by Aggrieved Chargees

5. ILYANA ISKANDAR
i. Aggrieved chargee cannot apply to Registrar to
remove caveat
ii. S.321(3)(C) NLC–provides for registered proprietor
whose application to remove caveat to registrar is
rejected.
b. Remedy to aggrieved charge
i. Development & Commercial Bank v LA WP - SC -
considered issue whether chargee who is not
aware of entry of Registrars Caveat or who has not
objected to entry of caveat in first instance has a
right to appeal pursuant to S.418 NLC.
1. firstly there is no express provision in s 321
NLC to enable a chargee on its own right to
apply to Registrar or Land Administrator to
cancel or remove the registrars caveat,
thereby making it quite impossible for the
chargee to obtain a decision of the
registrars caveat, for the purpose of an
appeal under s. 418
2. Secondly, under s 321(3) read with s.418, a
in the absence of the right to apply for
cancellation and as well as the absence of
express appeal provision chargee can only
appeal against the decision of the registrar
to enter the caveat but not against a
decision refusing to cancel the caveat.
ii. In absence of right to apply for cancellation and as
well as the absence of express appeal provision by
a chargee relating to refusal of Registrar to remove
caveat entered under s 320(1)(ba) declaratory
relief should be available to chargee.
1. power to grant a declaratory judgment
must be exercised with great care and
judiciously and in appropriate cases
2. Pendaftar Hakmilik Negeri Kedah v
Overseas Chineese Banking Corp. Ltd - sale
of charged land by chargee was disrupted
by existence of RC entered by Registrar to

6. ILYANA ISKANDAR
protect interest of unsecured debt of the
federation. Gunn Chit Tuan SCJ - …
Registrar had failed to take into
consideration several material factors in
entering RC on application of IRD. Reg has
not acted judiciously or reasonably within
ambit of NLC. He has exceeded his powers
and acted ultra vires and his act is invalid.
court - before exercising his discretionary
power under subsection (ba) Registrar must
first check market value of disputed land &
amount of debt due to government. If debt
due on any prior charge or charges exceeds
market value of land, RC cannot be entered
against land as it can be reasonably inferred
that debt due to Federation can never be
satisfied from sale of land.
3. Public Bank Berhad v Pengarah Tanah &
Galian & Anor - Ct - rights of a prior
registered interest-holder would enable him
to defeat rights of Federation or State
Authority. Ct - willing to allow entry of RC
on behalf by unsecured Federal or state
government. Interest of Federation can be
upheld only if there are no prior registered
interest of a third party which would have
been adversely affected by existence of
caveat.
9) Summary Procedure of Removal of RC by Registered Proprietor.
a. Communication of entry of caveat by Registrar to proprietor
b. Proprietor appeal to registrar against entry of caveat
i. Registrar refuse to remove caveat
ii. Appeal to court –s.418 within 3 months from decision of Registrar to
remove RC.
10) Procedure of Removal of RC Registered Interest Holder
a. Communication of entry of RC by registrar.
b. Within 3 months from decision of Registrar to enter RC must apply to court to
remove RC.

7. ILYANA ISKANDAR
c. Registered Interest Holder
i. D&C Bank v Govt. of M’sia– time to seek to remove RC by any person
having registered interest on land begins from time of communication of
entry of RC. registered interest holder has no right to apply for removal of
RC to the registrar.He must act expeditiously under s.418.
ii. Public Back Bhd. v Pengarah Tanah & Galian JB - right of appeal for others
with registered interest is pursuant to s.418.
11) S.321(4) NLC - Cancellation of Registrars Caveat
a. Registrar shall give effect to any order of court by making a note under his
hands and seal the date of cancellation of Caveat entered – s.417
b. If Registrar acts on his own motion to remove Caveat, he shall notify registered
proprietor of affected land.