hee cheng v krishnan

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



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.



• 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.



ISSUE

•Whether the contract entered bythe parties for selling and purchase

of a house built on the ground ofTOL is valid.

- VOID-



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)



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.



Govindaraju v. Krishnan (1962) 1 MLJ 334

TOL holder is allowed to rent his house built on his TOL land



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”



- 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.



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.



• 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.

hee cheng v krishnan

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