Malaysia CoA | New owner cannot claim entitlement to double rental on the basis of a tenancy agreement with previous owner

Malaysia Court of Appeal: A Full Bench of Hamid Sultan Bin Abu Backer, Hanipah Binti Farikullah, Kamaludin Bin Md Said, JCA overturned a decision of a High Court which ordered a tenant to vacant possession and pay double rental to the new owner of a land due to the non-existence of any legal tenancy agreement between the two.  

The appellant/defendant had been a tenant of the land the respondent/plaintiff bought at an auction on 12-09-2019 and hence, the validity of the tenancy agreement was called into question. The defendant contested that the tenancy agreement was until 14-10-2019 but there was no legal proof to support that claim. Essentially, there was no legal backing behind the defendant’s claims while the argument of the plaintiff was bolstered by Section 28(4) of the Civil Law Act, 1956 which allows for entitlement to double rental in case there is no valid tenancy agreement.

The Court of Appeals, however, found no basis for allowing the double rental. On one hand, the respondent does not want to recognise the appellant as a tenant and on the other, he wants double rental based on a tenancy agreement with the previous owner. Stating the same, the Court set aside the judgment of the High Court and said that the appellant should give up possession on the agreed date along with full but not double rental. The Court issues no order as to costs. [Abad Arena Juara Sdn Bhd v. Rajesh A/L Jaikishan, Appeal Civil No. N-04(NCVC)(W)-659-12 of 2018, decided on 26-07-2019]

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