First Ordinance. In thiscase the charge was not

First
Ground

i) Defeasible, the charge is void on the ground of
fraud

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In Public Finance Bhd v Narayanaswamy1,
the charger subdivided his land and sold it off to sub-purchasers. He charged
the same land for a bridging finance in favour of the charge, who knew that the
land had been fragmented, sold and some of the sub-purchasers had even gone
onto possession of their respective portion. The Chargor defaulted in making
repayment of the bridging loan and the charge applied for order for sale from
the court. In application for and order for sale the sub-purchasers contented
when the charge was registered, the charger disregard the unregistered interest
of the third party. The court had refused to grand order for sale.

ii) Defeasible, the charge is void on the ground of
contravention of statutes

In the case of Phuman Singh v Khoo Kwang Choon2,  dection 3 and section 43
requires charge to be registered which is in favour of a money lender under the
meaning of the Ordinance. In thiscase the charge was not registered as
required. When the charge (money lender) applied for an order for sale its
validity was challenged. The Court decided that the fact that it was not
registered was a cause to contrary within the meaning of section 256(3)4.in
UMBC v Syarikat

Second
Ground

Under the second ground where failure to condition
precedent for application. It refers to procedural defect in application. For
instance, Form 16D or Form 16E was not served, notice claiming for a sum not
payable due to wrongful demand for payment, invalid statutory notice and et
cetera.

In the case of Cooperative Central Bank Ltd v Meng
Kuan Properties Bhd5,
where it was held that the Plaintiff bank was not entitled to charge default
interest since they had not give any notice pursuant to Clause 5 of the charge
annexure which requires a notice that default interest was to be imposed,
before it could actually be imposed.

First
Ground

i) Defeasible, the charge is void on the ground of
fraud

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For You For Only $13.90/page!


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In Public Finance Bhd v Narayanaswamy1,
the charger subdivided his land and sold it off to sub-purchasers. He charged
the same land for a bridging finance in favour of the charge, who knew that the
land had been fragmented, sold and some of the sub-purchasers had even gone
onto possession of their respective portion. The Chargor defaulted in making
repayment of the bridging loan and the charge applied for order for sale from
the court. In application for and order for sale the sub-purchasers contented
when the charge was registered, the charger disregard the unregistered interest
of the third party. The court had refused to grand order for sale.

ii) Defeasible, the charge is void on the ground of
contravention of statutes

In the case of Phuman Singh v Khoo Kwang Choon2,  dection 3 and section 43
requires charge to be registered which is in favour of a money lender under the
meaning of the Ordinance. In thiscase the charge was not registered as
required. When the charge (money lender) applied for an order for sale its
validity was challenged. The Court decided that the fact that it was not
registered was a cause to contrary within the meaning of section 256(3)4.in
UMBC v Syarikat

Second
Ground

Under the second ground where failure to condition
precedent for application. It refers to procedural defect in application. For
instance, Form 16D or Form 16E was not served, notice claiming for a sum not
payable due to wrongful demand for payment, invalid statutory notice and et
cetera.

In the case of Cooperative Central Bank Ltd v Meng
Kuan Properties Bhd5,
where it was held that the Plaintiff bank was not entitled to charge default
interest since they had not give any notice pursuant to Clause 5 of the charge
annexure which requires a notice that default interest was to be imposed,
before it could actually be imposed.

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