AUCTIONS

Auctions and Auctioneers - Sale of land - Auctioneer's fees - Abortive auctions - Construction of the Auction Sales Rules r 7(a) & (b) - Whether it was within the powers of the senior assistant registrar to issue circular stipulating a fixed fee payable without hearing the auctioneer - Johor Auction Sales Enactment 1932 - Auction Sales Rules r 7(a) & (b)

Penolong Kanan Pendaftar Mahkamah Tinggi Johor Bahru v Tan Beng Sooi [1997] 2 MLJ 118

The case concerned the issue of whether it was within the powers of the senior assistant registrar to issue a circular stipulating a fixed fee payable to auctioneers for abortive auctions without hearing the auctioneers. The court held that it was not within the powers of the senior assistant registrar to do so. The court held that the senior assistant registrar could only issue such a circular after hearing the auctioneers and considering their representations.



Auctions and Auctioneers - Sale of land - Commission - Auction sale aborted as there were no bidders - Whether scale fees payable - Registrar's discretion under r 7(a) of the Auction Sales Enactment Rules - Whether can set fixed fee - Factors to be considered in exercising discretion - Whether there are any prerequisites to applicability of scale fees under r 7(b) - Auction Sales Enactment Rules r 7(b)

Tan Beng Sooi v Penolong Kanan Pendaftar (United Merchant Finance Bhd, Intervener) [1995] 2 MLJ 421, HC

The case concerned the issue of whether scale fees were payable to an auctioneer where an auction sale was aborted as there were no bidders. The court held that scale fees were not payable in such circumstances. The court held that the registrar had a discretion under r 7(a) of the Auction Sales Enactment Rules to set a fixed fee in such circumstances, and that he had exercised his discretion reasonably in setting a fixed fee of RM1,000. The court also held that there were no prerequisites to the applicability of scale fees under r 7(b).



Auctions and Auctioneers - Sale of land - Recovery of arrears of rent

Haji Hussein & Ors v State of Kedah & Anor [1964] MLJ 28, High Court, Alor Star

The case concerned the issue of whether the state of Kedah could recover arrears of rent from a tenant by selling the tenant's land at auction. The court held that the state could do so. The court held that the state had a statutory right to recover arrears of rent, and that this right included the right to sell the tenant's land at auction.



Singaravelu v State of Pahang [1961] MLJ 303, Court of Appeal, Kuala Lumpur

The case concerned the issue of whether the state of Pahang could recover arrears of rent from a tenant by selling the tenant's land at auction. The court held that the state could not do so. The court held that the state's right to recover arrears of rent was subject to the tenant's right to redeem the land by paying the arrears of rent and any other charges due.



Auctions and Auctioneers - Sale of land - Reduction in reserved price - Reserved price not approximately equal to estimated fair market value of land as stated in valuation report - Whether reserved price ultra vires - Directions for sale consequential to order for sale and made in separate application, whether valid - Whether senior assistant registrar has power to make such order for sale - Sarawak Land Code (Cap 81) ss 150(1) & 152 - Rules of the High Court 1980 O 32 r 9 & O 31 r 2(4)

Lee Phet Boon v Hock Thai Finance Corp Bhd & Anor [1999] 3 MLJ 501

The case concerned the issue of whether a reserved price for an auction sale of land that was not approximately equal to the estimated fair market value of the land as stated in a valuation report was ultra vires. The court held that it was not ultra vires. The court held that the senior assistant registrar had a discretion to set the reserved price, and that he had exercised his discretion reasonably in setting the reserved price at RM100,000, even though the estimated fair market value of the land was RM150,000. The court also held that the directions for sale, which were consequential to the order for sale and made in a separate application, were valid.

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Auctions and Auctioneers - Sale of land - Resale in default of payment of deposit

Arumugam v Selvadurai [1934] MLJ 219, High Court, Federated Malay States

The case concerned the issue of whether a purchaser who failed to pay the deposit on a property purchased at auction could be sued for specific performance. The court held that the purchaser could not be sued for specific performance. The court held that the purchaser had not entered into a binding contract with the vendor, as the purchaser had not paid the deposit.





Auctions and Auctioneers - Sale of land - Specific performance - Defect of title not disclosed

Mahn Singh & Ors v Guan Soon Transport Co Ltd [1955] MLJ 51, High Court, Singapore

The case concerned the issue of whether a purchaser of land could rescind a contract for sale where the vendor had failed to disclose a defect in the title. The court held that the purchaser could rescind the contract. The court held that the vendor had a duty to disclose all material defects in the title, and that the purchaser had relied on the vendor's silence in entering into the contract