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● While in UMBC Bhd v PHT Kota Tinggi, equitable relief against forfeiture
would be excluded by s 6. Further the relevant provisions of the NLC evince an
intention that equitable relief against forfeiture should not be available to
proprietors of alienated land.
Irrevocable license
● Devi v Francis, its was held that, in a proper case where the facts so justify it,
the equitable principles of an irrevocable license which is coupled with a grant
applies.
Bare trust
● In Chin Choy, it was held by Privy Council that the applicability of bare trust is
part of English law and accordingly in Malaysia is prohibited by s6 of CLA 1956.
(English law = English Common law)
● However, the application of bare trust doctrine has been adopted by Malaysia’s
court but have been modified according to the local circumstances. This can be
seen in in Borneo Housing Mortgage Finance Bhd, where the court said in order
for the bare trust to be existed,
1. Parties must sign the SPA
2. Sign MOT
3. a full payment on the purchase price must exist.
Equitable interest:
● S206(1) and s206(3) provides, dealing has not been registered shall not affect
the contractual operation of the transaction. Where the interest is not
registered, the person may have an equitable interest. This can be seen in:
- Equitable charges
Mahadevan v Manila & Sons, allow equitable charge even though charge not been
registered yet.
- Equitable leases (Tenancy for more than 3 years will be an equitable lease.)
Margaret Chua v How Swee Kiew, not registered but contract is enforceable,
remedy from contract, but specific performance cannot be granted
as another party had acquired in part of the land.
- Equitable easement
Templeton, it was held that s206(3) provided for the liberal application of equity
whenever there is a basis for it and found that there was an equitable
easement.
- Equitable lien
Where no lien holder’s caveat has been entered, lender may not have a lien under
NLC but may have a lien in equity.
Constructive notice