hee cheng v krishnan
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7/27/2019 Hee Cheng v Krishnan
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Hee cheng v krishnanBy
Nur Farhana binti Abdul Karim LEB120075
Nur Izzati binti Mohd Shaiful Bahri LEB120076Nur Syahirah binti Mohamad Tahir LEB120077
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Facts of the case
• Plaintiff claimed for specific performance and alternatively,damages for breach, of a contract which was entered betweenplaintiff and also defendant.
• The defendant was the holder at that material time, of the housethat was built upon a piece of land in respect of which aTemporary Licence was issued.
• In the contract, it was an attempt to sell and purchase of thedefendant’s right under the TOL.
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• Plaintiff contended that there was a conclude bargain by whichthe defendants was to sell the rights and the Plaintiff was thePurchaser in the amount of $2000. Hence, the Plaintiff had paid$200 to purchase the defendant's rights
• On the other hand, the defendant contended that he wasprepared to sell the said right of $2500 but the Plaintiff was notprepared to meet him and therefore left the matters in the air
and there was no further communication by the plaintiff toaccept the offer.
• Defendant then, entered into a contract to sell of a same subjectto another person.
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ISSUE
•Whether the contract entered bythe parties for selling and purchase
of a house built on the ground ofTOL is valid.
- VOID-
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Temporary Occupation License
“a permission granted by the State Authority to anyperson or body for the purpose of a specified activityon the land, without which, the person or body
would be deemed an unlawful occupier” (Prof. Nik Abdul Rashid, 1978)
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1. s. 68- A TOL CANNOT be transferredor assigned
Paruvathy v. Krishnan (1955)
• Any assignment, arrangement to transfer or assign the whole or any part
of the TOL land will be of no effect and such assignment/arrangementwill be illegal.
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Govindaraju v. Krishnan (1962) 1 MLJ 334
TOL holder is allowed to rent his house built on his TOL land
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2. Illegal contract under S. 24(b) Contracts Act - It is ofsuch a nature that if permitted, it would defeat any law
Rule 41 of Regulation 40 of the Land Rules 1930
- “ No license for the TOL of state land shall be
transferable”
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- The contract is an attempt to sell and purchase the defendant's rightsunder temporary occupation license.
- Therefore, if the contract is allowed, it would defeat the provisions ofrelevant laws.
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Opinion AGREE
• The land in question is a STATE LAND.
• So, any dealings must be done according to the provisions
of the Land Code and subsidiary legislation enacted under
it.
• Rule 41 of Land Rules 1930 clearly states that “no license
for the temporary occupation of State land shall be
transferrable.”
• If the court allows the contract made, the provision would
be defeated.
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• Section 68 NLC – “….a TOL shall NOT be capable of
assignment…”
• TOL confers a personal right on the holder but any
transaction amounting to a transfer of any rights
under the license is null and void.
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