Chapter 8 - Restraints of dealings: Prohibitory Order

Question 1

PROHIBITORY ORDER

Overview

Answer 1

1) Nature of PO
2) Application of PO
3) Lifespan of PO
4) Extension of PO
5) How PO is effected
6) Ineffective PO
7) Effect of PO

Question 2

PROHIBITORY ORDER

Nature of PO

Answer 2

S.334:

• a form of restraint of dealings;
• available to JC;
• prohibits the JD from effecting any dealing on the land.

Question 3

PROHIBITORY ORDER

application of PO

Answer 3

O.47, r.6(b)(c)(d):

• Mode: ex parte application
• Affidavit in support;
• Service: to JD & JC

Question 4

PROHIBITORY ORDER

lifespan of PO

Answer 4

O.47, r.6(f):

• 6 months

Question 5

PROHIBITORY ORDER

extension of PO

Answer 5

1) O.47, r.6(g)
2) Test: special circumstances - Airmartech Corporation (M) Sdn Bhd v Equaltra (M) Sdn Bhd:

• Applicant can only extend upon expiry; no file afresh is allowed.
• WHEN: application to extend must be made BEFORE expiry of PO.
• WHAT: special circumstances must be shown prior to applying for EoT.
• HOW: a copy of extension order must be presented for registration for the extension to take effect.

Question 6

PROHIBITORY ORDER

How PO is effected

Answer 6

O.47, r.6(e) + S.335:

• registration

Question 7

PROHIBITORY ORDER

Ineffective PO

Answer 7

O.47, r.7(a):

• there are 14 days to register the PO before PO expires;
• there shall be no sale until the expiration of this period;
• sale effected can be set aside for being irregular.

Question 8

PROHIBITORY ORDER

Ineffective PO - 14-day rule

Answer 8

Standard Chartered Bank v Yap Sing Yoke:

• this 14-days rule must be strictly complied with;
• failure will render the sale liable to be set aside.

Question 9

PROHIBITORY ORDER

Effect of PO - overview

Answer 9

1) PO entered on the land
2) PO entered on particular interest
3) Instrument entered prior to PO
4) PO entered after creation of charge

Question 10

EFFECT OF PO

PO entered on the land

Answer 10

S.336(1):

• PO prohibits registration of any dealings.

Question 11

EFFECT OF PO

PO entered on a particular interest

Answer 11

S.336(2):

• PO prohibits registration of any dealings directly effected to the interest, except certificate of sale.

Question 12

EFFECT OF PO

Instrument entered prior to PO

Answer 12

S.336(3):

• PO shall not prohibit the registration of such instrument;
• provided that the instrument was presented prior to PO takes effect.

Question 13

EFFECT OF PO

PO entered after creation of charge

Answer 13

S.339(2):

• PO entered will cease to have effect.