Hj Abd Rahman v Hassan

Facts:

In 1895 P (Hassan)
borrowed money ($1180)
from D (Mohd Eusop) and
transfer his land to D. (D
died-legal representative,
Hj Abd Rahman)
A written agreement was
entered whereby P agreed
to repay the sum within 6
months
Upon full settlement D
agreed to retransfer the
land to P

 if

not the transaction becomes jual putus

P only repay the loan 18 years after the expiry
of the agreed duration.
D refused to retransfer the land.
P commenced action to recover the land

Issue
Whether

the collateral agreement is a

contract or it was part of a security
transaction?

Decision
Lower

Court: applied principles of equity

once a mortgage always a mortgage.
Borrower/ P has right to redeem the land

Privy

Council: Having regard to Sec 4 of

the Regulation of Titles Regulation,
1891, the agreement conferred upon
the debtor no real right in the land but
merely a contractual right. (Lord
Dunedin)

Cont
It

was NOT a security transaction or

mortgage as the only form of
mortgage in Malaysia is charge or
lien. Since it was a contract, the
claim was statute barred.