Chapter 7.3 - Restraint of Dealings - LHC

Question 1

LHC

Overview

Answer 1

1) Requirements to enter
2) Burden of proof
3) Procedures
4) Effect of LHC
5) Lifespan of LHC
6) Third party lien
7) Competing equities

Question 2

LHC

Requirements to enter

Answer 2

• deposition of DT or duplicate lease;

- purpose of deposition.

Question 3

LHC

Burden of proof

Answer 3

1) Eng Mee Yong & Ors v Letchumanan:

• burden is on the lien-holder to prove that he has the right to apply for LHC;
• this can be done by showing that IDT or duplicate lease is deposited for the purpose of obtaining loan.

2) Nallamal & Anor v Karuppan & Anor:
- LHC may be set aside if it is found that the IDT is not deposited as a security for loan.

Question 4

LHC

Procedures for entry

Answer 4

S.330

Question 5

LHC

Effect of LHC

Answer 5

S.330(5)

Question 6

LHC

Lifespan

Answer 6

• unless & until it is removed under circumstances in S.322.

Question 7

LHC

Third-party lien

Answer 7

Heap Huat Rubber Co Sdn Bhd v United Overseas Bank Ltd:

• LHC may be lodged though loan is granted in favour of third party.

Question 8

LHC

Competing equities

Answer 8

Chiew Sze Sun v Muthiah Chettiar:

• LHC entered first will prohibit the subsequent entry of private caveat in respect of the same land.