REMEDIES OF CHARGES (CHARGOR IN DEFAULT)

Taking possession (s270-277)

The chargees power to take possession of the
charged land/lease shall not exercisable(s.270 (1))
(a) LOT/ corresponding form of Q.T.
Case:
Malaysia Credit Finance Bhd v. Yap Hock
Choon & Anor [1989] 2MLJ 363

(aa)
Charge of undivided share

(b)
Town/ village land
Except such land is not
occupied by the chargor

s. 270 (2)(3)
Only the first chargee has such right if there are more than one
charge. Unless the Minister of Land order on the National Land
Council recommendation which provides for the exercise of such
power by 2nd and subsequent chargee.

2 ways of taking possession s.271

(1)(a) Constructive land subject to lease and tenancy

(1)(b) Actual vacant land.

Land not subject to lease/ tenancy

Receive merits and profits due

Physical occupation

Procedures - 272(1)(a)
- Form 16J
- s. 272(2)
- C.R.S. 274(2)

Procedure: - s.272(1)(b)
- Form 16K
- s. 272(3)
- C.R.S. 274(1)(2)

s. 273(1)(3) + s.275

s. 273(1)(2) + s.275

s. 276(1)
(a) withdrawn by
the chargee

s.276
after Form 16J served under s.272(2) or s.275(7) binding
on the lessee/tenant & subsequent transferee of the lease/
tenancy until:

(b) cancelled by the chargor

Serve form 16L to
lessee/tenant

s. 277(a)(b)(c)(d)
The effect of taking possession
Case: Woon Fooh Hoh v. Muthiah Chetty [1934] MLJ 121

(c) cancelled by the purchaser on

sale under Chapter 3
Serve Form 16M to
lessee/tenant