An MOT is used to sell land, and transfer registered. The plaintiff claimed there is forgery, asserting she never signed the MOT and was not in Malaysia when it was executed.
HC: The plaintiff failed to prove forgery beyond a reasonable doubt, as required in fraud cases. The defendant, as a bona fide purchaser for value without notice, was protected under Section 340(3) NLC. Immediate indefeasibility of title applied, securing the defendant's ownership despite the forgery.
CA: Forgery was proven on a balance of probabilities (civil standard). Section 340 of the NLC provides for deferred indefeasibility, meaning an immediate purchaser with a tainted title can lose it, while subsequent bona fide purchasers are protected. The plaintiff was reinstated as the rightful owner.
FC: Reversed the Court of Appeal. Held that immediate indefeasibility applies to all bona fide purchasers, even those acquiring titles under forged documents. This means a registered proprietor retains indefeasibility, regardless of forgery.
*Upheld: RP’s title cannot be extinguished, even in cases involving adverse possession or claims of forgery, as long as the purchaser is bona fide