1. Sharifah Zubaidah Syed Abdul Kader
LAW 3111 – Section 3 (09/10)

2. Let’s Look at the NLC
 S.319: Nature and effect of RC
 S.320: Circumstances for entry of RC
 S.321: Procedure for entry of RC

3. Why Registrar’s Caveat?

4. Who Can Apply for Registrar’s
Caveat?

5. When you fear fraud.improper
dealings on your land,
apply for a RC

6. A registered proprietor may
apply for a RC on his own land
 As a registered proprietor may not apply for a
private caveat on his own land (Eu Finance v
Siland), if, for example his IDT was stolen and
he fears that it will be misused, he may apply
under s.320(1)(a) NLC for the entry of a RC.
 (See s.323(1) NLC – ‘claiming title to’)

7. Boonsom Boonyanit v Adorna Prop.
[1990]
 In this case, 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.

8. Lim Ah Hun v Pendaftar
Hakmilik Tanah P. Pinang &
Anor. [1990]
 The Registrar, in this case had entered a RC
on the land based on a letter sent by the 2nd
Df. and a police report alleging a fraudulent
transfer of the land.

9. How is a Registrar’s Caveat
Created?
 S.321:
 Registrar will fill in Form 19F and endorse the
entry in the RDT “Registrar’s Caveat
Entered”.
 Then Registrar will notify the proprietor of
land in Form 19A.

10. Nature and Effect of
Registrar’s Caveat
 It prohibits the registration, endorsement or
entry on the RDT of any instrument of
dealing on the land even though the
instrument was presented prior to the time
the Registrar’s Caveat takes effect.
 Thus, it can apply retrospectively as opposed
to a private caveat that only applies to future
dealings.
 See s.319(2).

11. Registrar’s Power to Enter a
RC
 S.319(a) NLC.
 How must this power be exercised?
 The Registrar must be satisfied that the
info.or material supplied to him in support of
the request for the entry must be credible on
the face of it.
 He must act reasonably acc: to the
circumstances of the case.

12. Issue: Whether the court can
order the Registrar to enter a
RC?
 Seet Soh Ngoh v Ventkateswara Bhd. [1976]
 High Court:
 Yes, under s.417(1) NLC, the court may order
the Registrar to enter a RC to prevent
fraud/improper dealing.
 In this case, the Registrar was present during
the proceedings.

13. Palaniappa Chettiar v Letchumanan
Chettiar [1982]
 The court can order the Registrar to enter a
RC even if the Registrar is not a party to the
proceedings.

14. Wong Kim Fatt, JC interpreted the
word ‘may’ in s.319:
 “It is clear…the Registrar may act on his own
motion or upon information/request made to
him. The word ‘may’ indicates a discretion on
the part of the Registrar. …Thus in the case of
the entry of a Registrar’s Caveat, the
Registrar is said to perform a quasi-judicial
function in the exercise of that
discretion..but the discretion must always be
exercised judiciously and not arbitrarily…”

15. Cont.:
 “..by contrast, in the case of an application for
the entry of a private or lien-holder’s caveat,
his function is purely ministerial or
administrative.”

16. Tan Soo Bing & Ors.v Tan Kooi
Fook [1996]
 Federal Court held:
 A person who desires to have a Registrar’s
Caveat entered in respect of any land must
first apply to the Registrar. If the Registrar
refuses the application, his remedy is to
appeal to the court under s.418 of the Code
against such refusal.

17. Effect of Registrar’s caveat?
 S. 319(1)(b): prohibits the registration/entry
of:
 -any instrument of dealing;
 - any tenancy exempt from registration;
 - any lien-holder’s caveat.
 Note: A RC does not prohibit the entry of a
private caveat or a trust caveat.
 Reason: Neither of these caveats create an
interest in land.

18. Protecting the Interests of
the Federation

19.  A Registrar’s Caveat can be used by the
Inland Revenue Department to prevent any
dealings on land belonging to a person or
body who owes tax to the government.
 Thus, a RC can be entered under s.320(1)(ba)
to protect any secured or unsecured debt due
to the Federation or State Authority.

20. See cases discussing this at
pp. 364-367 of your text.
 MBF Finance Bhd. V Pendaftar Hakmilik N.
Perak & Anor. [1990]
 D& C Bank Bhd. V Land Administrator, WP &
Anor. [1991]
 Pendaftar Hakmilik Nageri Kedah v OCBC
[1991]
 MUI Finance Bhd. V Pendaftar Hakmilik Shah
Alam & Anor. [1993]

21. Who has Priority? Prior
Registered Chargee or Government
under a RC?
 Let’s say a land owner has borrowed money
from a bank and creates a charge on his land.
Then, a few years later, it is found he owes
tax to the government and the government
enters a RC on his land.
 Is the chargee bank’s right adversely affected
by the RC on the land?

22. D&C Bank Bhd. V Land
Administrator, WP & Anor. [1991]
 Supreme Ct. held:
 The indefeasible interest of the chargee takes
priority over the subsequent Registrar’s
Caveat.
 Nevertheless, there is nothing unlawful in the
entry of a RC merely because there is an
existing charge.

23. Pendaftar Hakmilik N. Kedah v
OCBC Ltd.[1991]
 Supreme Ct. held:
 Before exercising his discretion under s. 320(1)
(ba) to enter a RC, the Registrar must first find
out the market value of the land, the debt due
under the prior charge and the debt due to the
government.
 If the debt due under the charge is more than the
market value of the land, the Registrar should
not enter the RC as the debt due to the
government cannot be satisfied from the land.

24. MUI Finance Bhd. v Pendaftar
Hakmilik, Shah Alam & Anor.
[1993]
 Issue:
 Whether the court can under s.320(1)(ba)
NLC grant the DGIR orders for sale and
dispositions of a taxpayer’s property to settle
outstanding liabilities of a taxpayer ?

25. Held: (Mahadev Shankar,J.)
 Neither s.320(1)(ba) of the NLC nor the
Income Tax Act empower the court to order
that the land be sold to satisfy the debt to the
government.
 The court also cannot order that the land
cannot be charged to another party until the
tax is settled.

26. Duration of Registrar’s Caveat
 S.321(3):
 A RC shall continue to be in force until it is
cancelled by the Registrar.

27. Removal of Registrar’s Caveat
 A RC can be removed by 3 ways:
 1) By the Registrar of his own motion.
(s.321(3)(a))
 2) On an application by the proprietor of the
caveated land. (s.321(3)(b))
 3) Pursuant to a Court Order granted to the
proprietor against the refusal of the
Registrar to remove the caveat under s.418
NLC.. (s.321(3)(c))

28. Can a Chargee Apply to Remove
a Registrar’s Caveat?
 MUI Finance Bhd. V Pendaftar Hakmilik Shah
Alam & Anor. [1993]
 Held:
 Under s.321(3) NLC, a chargee does not have
any right to apply for cancellation of a RC as
this can only be done by a registered
proprietor.

29. FINISH.
 Questions?