FACTS

- Respondents were the owners of the land.

- Wished to develop it and applied for sub-division and also conversion of land
- Consent was obtained from Datuk Bandar for the construction of substantial commercial
building of the land
- They were informed by the Director of Land and Mines, Federal Territory that the Land
Executive Committee had decided that their application would only be approved if
1) Respondent willing to make payments for the premium and tax on the change of the
category of land use to building
2)they accepted 99 year lease in exchange for their title and Respondents failed to surrender
the title or pay the premium.
- Collector of Land Revenue, under section 128 of the National Land Code had served a notice
to them to remedy their failure to alter the condition of land use from agriculture to
commercial
- Respondent, by virtue of Originating Motion has applied for order for the cancellation of
such notice on the ground that it was invalid
- Respondents claimed that there was no expressed endorsement on the document of title
regarding to the category of land use and it was no necessary to apply for conversion.

Issue

- Whether there is a need to apply for imposition of category of use for land to be used for
building
- Whether notice can be served by the Appellant under section 128 of the Code

Held
- In High Court, where the case was heard, the application was allowed

- Appeal was made by the Appellant to the Federal Court

- In Federal Court, appeal was allowed on the ground that
1) the land in quest is under registry title and when NLC came into force, as per section53(3)
of NLC provides that it shall not be used neither for agricultural nor industrial purpose
2) for a land use for building, the ownders have to apply for the imposition of category of
building under section 124 of the NLC
3) if App fails to erect the building to apply for imposition of the category building to their
title and this would constitute breach of condition and reasons actions under section 128 of
NLC was taken

- order of the High Court directing the cancellation of notice served under section 128 f NLC is to be
restored and that Respondent is to pay costs of App