Remedies for Registered Chargee (Distribution of Purchase Money ((1) pay…
Remedies for Registered Chargee
S 260-S265 NLC: Procedure for applying order for sale at Land Office.
Distribution of Purchase Money
(1) pay all outstanding rent to the State Authority
(5) settlements of all subsequent chargee
(2) Cost relating to carrying out the order for sale
(4) In the case of charge to secure payment of annuity/ periodic sum: in accordance with any provision for the satisfaction of payments subsequently falling due
(3) payment to the chargee the total amount due under the charge
S 256 NLC: Procedure for applying order for sale At Court
Matters to be dealt in an order for sale made by the Court.
S259 NLC Procedure at Sale
S 258 NLC Procedure Prior Sale
S 256 NLC (1) sale by public auction;
(2) sale within one month after the order is made;
(3) specify the total amount due to the charge at the date of the order;
(4) Registrar should fix reserve price = market value.
Requirements are mandatory. Failure?
Oriental Bank Bhd v Syarikat Zahidi Sdn. BHd
Registry Title: High Court;
Land Office Title: Land Administrator.
Before the order is made:
(1) Whether there is default;
(2) must be satisfied there is no cause to the contrary.
Compliance to Procedures under Rules of Court : Citibank NA v Ibrahim Bin Othman
The Function of Registrar: Administrative in Nature. No power to investigate any allegation of fraud.
S255, Form 16 E.
Form 16E. (a) principal sum is payable on demand; (b) one-month notice (this period cannot be reduced by the chargee) ; (c) failure of (b), then chargee will apply for the order for sale without issuing Form 16D.
Confusion : What if wrong form s are used?
Jacob v Oversea Banking Corp, Ipoh  2 MLJ 161
Order for sale by way of public auction; 2. taking possession of charged property.
S 254 NLC , serve Form 16D. the default must be continuosly for one month.
Form 16D (a) specifying the breach; b) remedial period of one month or any other period in the charge; (c) failure of (b), chargee will take order for sale proceedings.
WHY: to provide chargor with time to remedy the breach.