Land gone
despite forgery
26/06/2005 Sunday Times V. Anbalagan
KUALA LUMPUR: Three ordered to pay RM7.3m to couple A couple lost their
ancestral land despite the High Court’s finding that their signatures on bank
documents had been forged.
The court, however, ordered a land broker, a lawyer and his law firm to pay
Ismail Mohmad and Saadiah Abdullah RM7.3 million, the balance of the price
of the transacted land.
Datuk Arifin Zakaria, who sat as High Court judge, said he had no choice but
to rule that Bank Kerjasama Rakyat Malaysia Berhad had registered interest
over three pieces of properties in Seberang Prai Selatan in Penang.
Saying the case before him was "very difficult", Arifin added that he was
bound by a Federal Court ruling in 2000 in making his ruling.
Arifin suggested to counsel Gerald Gomez, who represented Ismail Mohmad and
Saadiah, that the case be taken to the Court of Appeal.
Arifin, who was elevated from the Court of Appeal to the Federal Court last
week, said he accepted the evidence of handwriting expert Lim Yok Chaw who
found differences in the documents allegedly signed by Ismail Mohmad and Saadiah.
RELIEF: Family members (from left) Nurul Hayati, Kalthom, Rosli and Abu Bakar
outside the court.
On Dec 23,1999, the couple alleged misrepresentation, negligence, fraud and
breach of trust over a sale and purchase agreement for their properties.
They had named land broker Ismail Husin, lawyer Abdul Aziz Ahmad and his law
firm Messrs Sajali & Aziz, the bank and Vest Hong Enterprises Sdn Bhd as defendants.
They claimed Ismail Husin had charged the three pieces of land, using the
original title deeds, to secure a loan for Vest Hong in which he holds an
equity.
The couple said Ismail Husin had earlier approached them to buy their properties
for RM7.5 million.
They entered into an agreement on July 30, 1999 but only RM200,000 was paid
to them although Ismail Husin assured the couple the full payment would be
settled in two months.
The couple said the bank approved a RM16 million loan to Vest Hong for the
purchase of machinery and as working capital.
They alleged that Ismail Husin and Abdul Aziz released the title deeds to
the bank as security for the loan.
Arifin, in his judgment ruled that Ismail Husin, Abdul Aziz and the legal
firm were liable for their actions.
He said the bank too had knowledge of the fraud.
The judge said Vest Hong was subsequently wound up and that its directors
had absconded to China.
Arifin, however, allowed the couple’s application to order Ismail, Abdul Aziz
and his legal firm to pay them the balance purchase price of RM7.3 million,
inclusive of eight per cent interest per year, for their property.
By consent order, the couple were absolved from paying RM23 million purportedly
owed to the bank.
Arifin also ordered Ismail, Abdul Aziz and the legal firm to pay general and
exemplary damages and costs.
Ismail Mohmad, 75, a former harbour pilot with the Penang Port Commission,
died on Aug 18 last year and his son Abu Bakar substituted him as the first
plaintiff.
Saadiah, 67, was absent from court because she was not well.
Abu Bakar, a marine supervisor with an oil refinery in Port Dickson, said
he was glad the court had ruled that his parents were not responsible for
the (RM16 million) loan.
"The property has slipped from us but we are happy that those responsible
had been ordered to pay the outstanding sales amount plus interest," he said.
However, he was sceptical whether the family would ever recover the money
following the land sale.
"If we do not get the money, we want the land back. We will make a decision
soon," he said.
Abu Bakar said a complaint had been lodged with the Bar Council against the
lawyer and his firm.
Also present at the hearing today were Abu Bakar’s brother Rosli and sisters,
Kalthom and Nurul Hayati.
Gomez said the couple would only obtain a paper judgment if the defendants
did not pay up. |
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