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Boonsom Boonyanit and Immediate Indefeasibility: Federal Court reverses its position

The Federal Court in Tan Ying Hong v. Tan Sian San and 2 others [2010] 2 CLJ 269, has overruled its earlier decision in Adorna Properties Sdn Bhd v. Boonsom Boonyanit [2001] 1 MLJ 241, which held that section 340 of the National Land Code (the Code), conferred immediate indefeasibility and not deferred indefeasibility, to a bona fide purchaser, in a case where the transfer of title is vitiated by a defect or illegality.