What is Prohibitory Order?
s334 National Land Code defines Prohibitory Order as:
-an order by a court
-made to prohibit a judgement-debtor from dealing in his land
-so as to enable the judgement creditor to apply for an Order for Sale in execution of judgement debt
Entry of Prohibitory Order
-PO is entered by a successful judgement creditor against a judgement debtor’s land
-must have obtained judgement
-a judgement debtor cannot enter a private caveat as he does not claim within the category of person under s323(1) National Land Code – Yap Sing Yoke case
–3335(2) National Land Code: PO will be effective at the time at which the entry was made
(effective when the Registrar endorses on the RDT the words @PO’ together with a statement specifying whether the order relates to the land itself or merely a particular interest therin)
Effect of Prohibitory Order
–s335 National Land Code: PO only takes effect upon entry on the RDT by the Registrar
-the effect is similar to that of a private caveat
–s336 National Land Code: effect of the PO is to prohibit any subsequent dealings in the land but not any certificate of sale
–Paramoo v Zeno: PO cannot affect the priority of an existing registered chargee or the holder of a statutory lien
–Yap Sing Yoke: this also applies where one has a prior equitable interest. Prior equitable interest cannot be defeated by the judgement creditor
s336(3) National Land Code:
PO shall not prohibit:
*registration
*Endorsement
*entry of any instrument
*claim
*Lien-holders’ caveat
which prior to the time from which the order takes effect
Registrar Caveat – FOREVER
Private Caveat – 6 YEARS
Probibitory Order – 6 MONTHS
Rules on registration of a prohibitory order (Order 47 R6)
–o47r6(1): judgement creditor must obtain a PO which has the effect of prohibiting the judgement debtor from transferring, charging or leasing such property or interest, lien
–o47r6(2): a copy must be served on JD, one more copy shall be issued to the JC for the purpose of registration at the Registry of Titles or Land Office
–o47r6(3): PO only takes effect when it is registered
–o47r6(4): PO lapse at the expiry of 6 months from the date it was made
–o47r6(5): allow for the PO to be extended for a further period of 6 months. Such application must be presented to the Registry of Title or Land Office before the expiration of the PO
–Ban Hin Lee: the court must be satisfied that there exist good reason(s) before exercising its discretion to extend a PO
–o47r6(6): prohibit the entry of another PO affecting the same property or interest in the same suit or proceeding in execution of the same order or judgement
