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SUHAILA ENDUT

ASSIGNMENT GROUP 8
ZULHILMI BIN ZAINUDDIN

MBE 141087
MBE 141075

GROUP 8
Skudai City Development purchases a piece of freehold land registered
under Registry Title in Kempas within the township of Johor Bahru.
Historically, the Johor State Authority alienates the land in 1901 to
one, Datuk Bendahara. Thereafter, the land passes from purchaser to
another until finally Skudai City Development now becomes the
registered owner. It appears that, the title does not indicate the usual
term as to the land use the land is subject to. The previous owners
had planted fruit trees and carried out other agriculture activities on
the land. The new owner now applies for planning permission to
develop it into a housing and commercial centre. The Dewan
Bandaraya Johor Bahru (DBJB) grants the application on condition
that the developer converts the freehold land from agriculture to
building. Thereafter, in compliance with the condition, the developer
applies to the Land Office for the conversion and also subdivision of
the land under section 124A of the National Land Code 1965. When
the State Authority (SA) approves the application, it imposes Premium
RM1 million based rate for commercial buildings; and the land’s
original freehold title is reduced to ninety-nine year lease. Skudai City
is extremely unhappy with this turn of event and seeks you opinion on
the legality of the conditions imposed by MBJB and Johor State
Authority. Advise the developer.

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The implied conditions are as follow: i. If the land was alienated before the commencement of the National Land Code. Under section 116 of the act which stipulate the implied conditions of building category. Skudai City Development had applied for planning permission to develop the land into a housing and commercial centre. Section 53’s implied conditions apply to all land alienated before the act 2 until a category of land use is imposed under section 54 by the State Authority3. All other land (town and village land held under Registry Title) shall not be used for agricultural or industrial purposes. section 53 shall be effective. The category of land use shall be endorsed on the document of title as determined by the State Authority1. or town or village land held under Land Office Title ii. __________________________________ 1 Section 52 Page 2 of 9 . then. building and industry. shall be used for agricultural purpose only. housing falls under sub-section (4)(a) 4 while commercial centre falls under sub-section (4)(b)5.Country land.SUHAILA ENDUT ASSIGNMENT GROUP 8 ZULHILMI BIN ZAINUDDIN MBE 141087 MBE 141075 Introduction Section 52 of the National Land Code recognized three categories of land use that are agriculture.

the portion of land wanted will be given back except for the remaining areas will be surrendered to SA. The application for approval of surrender and re-alienation is as per follow13: a) Re-alienation according to approved layout plan b) Land revenue (quit rent) must be paid c) Land is not under any attachment order by the court d) No registered interest in the land e) Consent from interested parties have been obtained __________________________________ 6 Section 135 to 139 Page 3 of 9 . Subdivision shall only be approved if certain conditions are satisfied9. Surrender and re-alienation is approved by State Authority11 and the approval is exercise at its discretion 12. The approval of subdivision is given by the Director of Lands and Mines (Registry Title)7 or Land Administrator for Land Office Title 8. road and etcetera if they intends to carry out land development project which required them to subdivide the said land. Any approval for subdivision is given by State Authority 6. First is surrender which has section 195 for total surrender of land and section 200 is for partial surrender of land. Under the surrender and re-alienation there are 2 parts which can be used. The form that will use is Form 12D which mention portion of land to be given back10. a proprietor or land owner are required to surrender a certain portion of land to local authorities such as TNB. Second part is under surrender and re-alienation which the provision is in the NLC Section 203 to 204H.SUHAILA ENDUT ASSIGNMENT GROUP 8 ZULHILMI BIN ZAINUDDIN 2 Section 53 3 Section 54 4 Section 116(4)(a) 5 Section 116(4)(b) MBE 141087 MBE 141075 In land development.

2. Discussions General The National Land Code used two concepts that are classification of land and category of land.SUHAILA ENDUT ASSIGNMENT GROUP 8 ZULHILMI BIN ZAINUDDIN 7 Section 135 (2) 8 Section 135 (2)(b) 9 Section 136 10 Section 204 11 Section 204B 12 Section 204E(1) 13 Section 204C MBE 141087 MBE 141075 Whereas the procedure of surrender and re-alienation application in the following14: a) b) c) d) e) Submit application as prescribed in Form 12D -enclosing fee Consent from interested parties Location plan /pre-computation plan Approved layout plan Issue document of title Issues: The following issues are identified based on the facts of the case: 1. Classification of land refers Page 4 of 9 . The category of land use is not stated in the title. However. the local authority assumes the land title is agriculture and the State Authority imposed a premium of RM 1 million based rate for commercial building. Whether SA can change the title condition upon submission of surrender and re-alienation by Skudai City Development.

Dewan Bahasa dan Pustaka. Kuala Lumpur. Since the condition was not expressed. under paragraph (b) of the same section. Further. page 71 Issues (1): The category of land use is not stated in the title. the local authority assumes the land title is agriculture and the State Authority imposed a premium of RM 1 million based rate for commercial building. Page 5 of 9 .. there is no mention of the land use in the title but Dewan Bandaraya Johor Bahru (DBJB) instructed Skudai City Development to convert the land use category from agriculture to building. However. S. (2007) Malaysian Torrens System: Second Edition. maximum utilisation of land and identification for future acquisition15. way before the commencement of National Land Code 1965 from 1 January 1966.SUHAILA ENDUT ASSIGNMENT GROUP 8 ZULHILMI BIN ZAINUDDIN MBE 141087 MBE 141075 to the location of land whereas category of land refers to the type of usage the land is subject to (refer to Section 52 under Introduction). the implied conditions under section 53(2) or 53(3) shall apply17. The Johor State Authority alienated the land in 1901. __________________________________ 14 15 Section 204D Buang. According to Salleh Buang. these legal concepts are to ensure certain objectives are attained that is order in development. Section 110 paragraph (a) of the act provides that land alienated before the commencement of the Act shall be subject to such express conditions and restrictions in interest endorsed on the document of title16.

since the land is a country land. __________________________________ 16 Section 110(a) 17 Section 110(b) This case is similar to Garden City Development Berhad v. Federal Territory 18. Pursuant to section 53(2). The category of land use for the proprietor’s land was not stated in the land title.SUHAILA ENDUT ASSIGNMENT GROUP 8 ZULHILMI BIN ZAINUDDIN MBE 141087 MBE 141075 As the land is registered under Registry Title. the case was also being referred to in Le Hazen Resources Sdn Bhd v. the implied condition is that the land shall be used for agricultural purposes only. Thus. the land category based on the implied condition is building. The proprietor argued that the land is town land as its location is in Kuala Lumpur and referred to the facts in Garden City. The Privy Council had allowed the appeal by the proprietor that under section 53(3). The proprietor had challenged the validity of notice requiring them to convert their land from agricultural land to commercial land and payment of premiums issued by the authorities. Although a bit different. Collector of Land Revenue. the provision allows the proprietor's land being lawfully used for building purposes. The argument was rejected by the High Court Page 6 of 9 . The land is affected by section 53(3) which stated that it should not be used for agricultural or industrial purpose. Land Administrator of Federal Territory Kuala Lumpur19. section 53(2) is not applicable.

However there is no provision for realienation approved by State Authority changed the title of the land. Conclusion Issues (1) Based on the facts above. the re-alienation by SA shall also be as freehold. Land Administrator of Federal Territory Kuala Lumpur [2011] MLJU 1255 Issues (2): Whether SA can change the title condition upon submission of surrender and re-alienation by Skudai City Development. __________________________________ 18 Garden City Development Berhad v. Collector Of Land Revenue. the land is town land held under Registry Title whereas this case relates to country land. When a freehold land is surrendered to the SA. Skudai City Development does not need to convert the land use category as instructed by DBJB and does not need to pay the RM 1 million premium to the State Authority.SUHAILA ENDUT ASSIGNMENT GROUP 8 ZULHILMI BIN ZAINUDDIN MBE 141087 MBE 141075 because in Garden City. The State Authority exercises the approval for surrender and realienation at its discretion12. and where the original title is for a period of years. Federal Territory [1982] 2 MLJ 98 19 Le Hazen Resources Sdn Bhd v. the period for which the land is to be re-alienated shall also be in perpetuity. Page 7 of 9 . according to Section 204E(3) 20: Provided that where the original title is a title in perpetuity.

It is unfortunate that neither in the court below nor in this court has reference been made to any of them. The same case could be referred is in the Pengarah Tanah & Galian. put his judgement briefly as follow: __________________________________ 20 Section 204E(3) 21 Pengarah Tanah & Galian. Pengarah Tanah & Galian 22. the discretionary power to impose such conditions ‘as they think fit’ is not an uncontrolled discretion to impose whatever conditions they like”.J. Bhd 21. Wilayah Persekutuan v. C. Page 8 of 9 . the present case falls to be decided on well established principles and they are to be found in the cases decided under the (U.K. Wilayah Persekutuan v. On principle and authority.SUHAILA ENDUT ASSIGNMENT GROUP 8 ZULHILMI BIN ZAINUDDIN MBE 141087 MBE 141075 the period for which the land is to be re-alienated shall not be less than the remainder of the period of the lease for which the land was held under the original title.) Town and Country Planning Acts. Sri Lempah Enterprise Sdn. Suffian LP said that: ‘conditions to be valid must fairly and reasonably relate to the permitted development. Pengarah Tanah & Galian [1979] 1 MLJ 271 “In my opinion. Sri Lempah Enterprise Sdn.’ In Ipoh Garden Berhad v. The Acts empower planning authorities to refuse permission or to grant permission unconditionally or to impose such conditions ‘as they think fit’. Perak Raja Azlan Shah Ag. Bhd [1979] 1 MLJ 135 22 Ipoh Garden Berhad v.

Page 9 of 9 . however it doesn’t have any power to impose change of title from freehold to leasehold.SUHAILA ENDUT ASSIGNMENT GROUP 8 ZULHILMI BIN ZAINUDDIN MBE 141087 MBE 141075 Conclusion Issues (3) Although the power of approval is under SA jurisdiction.