Right Base Trading Sdn Bhd v Premium Park Development Sdn Bhd

Appellant(s): Premium Park Development Sdn Bhd

Respondent(s): Rightbase Trading Sdn. Bhd

• YA Datuk S. Nantha Balan A/L E.S. Moorthy
• YA Datuk Azimah binti Omar
• YA Dato' Ahmad Kamal Bin Md. Shahid

• The proprietor owned two plots of land, including an access road and an unidentifiable 3-acre portion, which were leased to the tenant under a tenancy agreement.
• The tenancy agreement stipulated automatic termination upon the commencement of compulsory government acquisition of the lands.
• Despite the termination of the tenancy due to gazettement of acquisition intent, the tenant continued to occupy the lands, leading to a Consent Order allowing continued access until formal acquisition.

• Whether the proprietor was entitled to claim for overdue rental under the tenancy agreement, given its termination and the principle of estoppel.
• The precise timing of the divestment of proprietary rights from the proprietor to the State Authority during compulsory acquisition (issuance of Form K vs. endorsement on title).
• Whether the Consent Order, which permitted the tenant's access until formal acquisition, precluded the proprietor's claim for trespass over the Rented Lots.

• The Court dismissed the proprietor's appeal, affirming that the tenancy agreement was validly terminated by the commencement of compulsory acquisition and mutual agreement, thus precluding any claim for overdue rent.
• The Court allowed the tenant's appeal, holding that proprietary rights are divested from the previous owner and vested in the State Authority only upon the endorsement of Form K onto the register document of title, not merely its issuance.
• Notwithstanding the proprietor's continued proprietary interest, the subsisting Consent Order legally justified the tenant's continued access to the Rented Lots, thereby precluding the proprietor's claims for trespass over both the Access Road and the Unidentifiable Land.