LIENS - LAND LAW II

Which statement is CORRECT on lien under the NLC?

• Lien is a security dealing relating to registrable interest in land or lease between the registered proprietor and the lender in favour of the lender to secure a loan

• A lien is a right in one man to retain that which is in his possession belonging to another man until certain demands of the person giving the possession are satisfied.

• A right of a lender to retain the issue document of title, copy of IDT or duplicate lease to secure repayment of a loan .

What was the analogy provided by Earnshaw J C in the case of Palaniappa Chetty v Dupire Brothers [1919] FMSLR 374 in describing a lien?

• 'Security is the genus, lien is a species'

• 'Security is a species, lien is a genus'

• 'Security is a whole, lien is part of it'

• None of the above

There are three requirements for lien which are:

• Proprietor, Deposit IDT, Registration

• Proprietor, Registration, Lien-holder Caveat

• Deposit title, Intention to Create Lien, Lodge Lien-holder Caveat

To create a lien, a lien-holder must fill in form

• Form 16D

• Form 19D

• Form 16A

A lien may be created by?

• Proprietor of alienated land

• Co-proprietor of undivided share

• Registered lease holder

• All of the above

Which is the principle in the case of Perwira Habib Bank Malaysia Bhd v Loo & Sons Realty Sdn Bhd [1996] 3 MLJ 409?

• Only a registered proprietor had the power or right to deposit the title deed for the purpose of creating a lien holder’s caveat

• The intention to create lien can be gathered from the fact that IDT was deposited with the lender only for securing loan.

• Failure to register a lien holder’s caveat gives rise for to equitable rights between the parties.

Choose the CORRECT statement.

I. Lien is a non-registrable security dealing under National Land Code 1965

II. Lien is a dealing that give rise to a registrable interest in the land or lease or undivided share in the land

III. There are three pre-requisite elements which must be fulfilled in order to claim a valid and enforceable lien

IV. Lien can be created as prescribed by section 241(1) of the NLC 1965.

• I, II, III

• I, II

• I, III

• III, IV

Effect of unregistered charge while the IDT was in custody of the lender constitutes that the lender had acquired a lien in equity. This was held as in the case of…...

• Paramoo v Zeno Ltd [1968] 2 MLJ 230

• Perwira Habib Bank Malaysia Bhd v Tin Siang Sdn Bhd & Ors [1992] 4 CLJ 1875

• Standard Chartered Bank v Yap Sing Yoke & Ors [1989] 2 MLJ 49

Which of the following is the statutory remedy for a lienholder?

• Obtain judgement order prior to obtaining an order for sale of the land

• Damages

• Specific performance

• Injunction

Alia deposited the IDT to Rania for the purpose of safe-keeping. Is the lien valid?

• Yes

• No