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LIA2005/LXEB2112 LAND LAW I

3 RIGHTS & POWERS OF STATE AUTHORITY

RIGHTS & POWERS OF STATE AUTHORITY

1 INTRODUCTION

- ‘State land’: s 5
means all land in the State (including so much of the bed of any river, and of the foreshore
and bed of the sea, as is within the territories of the State or the limits of territorial waters)
other than—

- (a) alienated land;


- (b) reserved land;
- (c) mining land;
- (d) any land which, under the provisions of any law relating to forests (whether
passed before or after the commencement of this Act) is for the time being reserved
forest;

- s 40
40 Property in State land, minerals and rock material
There is and Shall be vested solely in the State Authority the entire property in--
(a) all State land within the territories of the State;
(b) all minerals and rock material within or upon any land in the State the rights to which
have not been specifically disposed of by the State Authority.
- s 41
41 Powers of disposal of State Authority, and rights in reversion, etc
Without prejudice to its powers and rights under any other written law for the time being
in force, the State Authority shall have--
(a) all the powers of disposal conferred by section 42 with respect to--
(i) property vested in it under section 40; (state land and minerals and rock material)
(ii) reserved land; and
(iii) mining land,
which powers shall be exercised in such manner and to such extent as is authorised by
the provisions of this Act, and not otherwise; and;
(b) all the rights in reversion and other similar rights conferred on it by section 46.
- ‘State Authority’: s 5 means the Ruler or Governor of the State, as the case may be ;

Government of the State of Negeri Sembilan & Anor v Yap Chong Lan & 12 Ors; Lesco
R were living in house built by the on a piece of land. Submitted applications for alientation
and Collector gave assurance that R can hold house and be provided with utilities. They
were informed that the land had been acquired by the State Government and were
subsequently reallocated lots in Ulu Temiang, There is no registration of title.

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- The state later alienate to lesco
- R argue alienation was bad in law because some of the land was reserved
land and no revocation was done.
Development Corporation Sdn Bhd v Yap Chong Lan & 12 Ors [1984] 2 MLJ 123 (FC)
Hamdan Johan & Ors v Felcra Bhd & Ors and Another Case [2012] 4 MLJ 785.
 Lebbey v Chong Wooi Leong D were unlawful occupiers of alienated land. They have been on land
even before it was alienated, when It was still owned by Selangor State Authority. In an action by P
for possession of land, D argue that although they entered land without consent or licence, they had
peaceful enjoyment and occupation without interference by SA.
o They argued that district officer allowed them to rebuild their houses on land after a fire and
a committee of residents applied for TOL based on politicians promises that they would be
give TOLs.
o Held: SA is the Ruler. For practical purposes, it means the ruler acting upon the
recommendation of the Exco of the State
 Even State government, minister, exco member, politician has nothing to do with
these proceedings under the code, which only recognizes only the state authority

2 POWERS OF DISPOSAL

2.1 Property in Land

- See s 40
40 Property in State land, minerals and rock material
There is and shall be vested solely in the State Authority the entire property in--
(a) all State land within the territories of the State;
(b) all minerals and rock material within or upon any land in the State the rights to which have not
been specifically disposed of by the State Authority.

2.2 Lands Which Could Be Disposed Of

- ‘disposal’: s 5 disposal of land by SA in exercise powers conferred in s42 or powers


conferred by previous land law
- See ss 41 & 42
- 41 – without prejudice to powers conferred under other written law SA shall have
powers of disposal conferred by s42 for
▪ Property in s40
▪ Reserved land
▪ Mining land
- S42(1) powers of disposal
▪ (a) to alienate state land according to 76
▪ (b) reserve state land and grant leases of reserved land – chapter 1 part 4
▪ ©permit occupation of state land, reserved land and mining land under
tol – chapter 2 part 4

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▪ (d) permit extraction or removal of rock material from any land other than
reserved forest – chapter 3 part 4
▪ (€) Permit use of airspace on or above state land or reserved land

2.3 Ways Of Disposal

- s 42(1) : subject to s 42(2)

s 42(1) SA has powers of disposal as well as rights in reversion with regard to state land
s41(1) 5 methods of disposal:
1. alienation
2. reservation
3. grant TOL
4. permit extraction and removal of rock material
5. permit use of air space on or above land
Subject to restrictions in s42(2).

2.4 Matters Over Which The SA Has No Power

- s 42(2)

s42(2) restrictions

(a) x dispose mining land (meaning in mining Enactment)

(b) x permit to extract or remove rock material from any land for the purpose of obtaining metal
or mineral

(c) x dispose any land for purpose of removal of forest produce

(d) x alienate any [ land held under the category agriculture or subject to any condition requiring
it to be used for agricultural purposes], to one person or body that will result in the said land being
less than 2/5 of a hectare.

Except under exceptional circumstances

2.5 To Whom The Power Of Disposal By SA May Be Exercised

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2.5.1 General

- s 43
- may be disposed to person(s) or bodies provided in s43
S43 – disposed to
 natural person other than minors
 companies with power to hold land – under memorandum of association
 Authorised to hold land under Diplomati and Consular Privileges Act
o sovereigns
o governments
o organisations
o other persons
 bodies empowered to hold land under any other written law

2.5.2 Non-citizens Or Foreign Company

- See Part 33 (A) Restrictions in respect of non-citizens and foreign companies


Chapter PART THIRTY-THREE (A) RESTRICTIONS IN RESPECT OF NON-CITIZENS AND FOREIGN
433A- 433H

433B non citizens and foreign companies may only acquired land by way of disposal after it has applied
in writing to the State Authority and has obtained prior approval of the State Authority regarding the
disposal.
433B(2) SA may impose terms and conditions and may also impose levy.
433B(1) Proviso no need such approval if land held under category of ‘industry’

a) Land subject to category ‘agriculture’ or ‘building’

b) Land subject to the category ‘industrial’

3 DISPOSALS BY THE STATE AUTHORITY

3.1 Reservation of Land & Lease of Reserved Land

3.1.1 Reservation of State Land

- ‘reserved land’: s 5 land reserved for public purpose accordance to 62 or previous


land law
- s 62(1) SA may by notification in Gazette reserve for any public purpose

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- s 62(4) reserved land shall not be 1. Disposed of by SA except to extent permitted
s63 and Chapter 2,3,4 of this part 2. Used for purpose other than for which it is
reserved except in pursuance of a disposition made by virtue of any of those
provisions

Hotel Sentral (JB) Sdn Bhd v. Pengarah Tanah Dan Galian Negeri Johor, Malaysia &
Ors [z
since the said land had not been gazetted, it could not, by law, be considered as a reserved
land within the meaning and ambit ascribed to it by ss. 5 and 62(1) of the NLC. The said land
would continue to be State land and by virtue of s. 40(a) of the NLC, it remained vested with the
State Authority.

3.1.2 Revocation of Reservation

- s 64 revocation of reservation

Government of Negeri Sembilan & Anor v Yap Chong Lan & Ors [1984] 2 MLJ 123 FC
64(2) are mandatory and not mere formality. However, under certsin
cicrumstances, non-compliance is not fatal.

Court held Alienation was still valid.


Two consideration influenced the courts:
1.SA could revoke at any time or even retrospectively the reservation
2. size of land in quesyion in relation to that of the actual area alienated
- affected area comparatively minimal

3.1.3 SA’s Power to Lease Reserved Land

- s 63(1) & (2), Form 4E


- s 64(4)

3.2 Temporary Occupation Licence (TOL)

3.2.1 Lands over Which TOL May Be Issued

- s 65(1) in accordance to s14 SA may permit TOL of – state land, mining land not
used for mining in time being, reserved land not used for purpose for which it was reserved in the
time being

3.2.2 The Issue of TOL

- See s 66 Issued of renew on behalf of SA by

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(a) state land – LA
(b) mining – LA with approval
(i) senior inspector of Mines
(ii) person or body entitled to benefit of minin =f lease
© reserved land – (i) LA with officer of officer having its control
(ii)

- S 67(4) Every TOL except s69 one, shall be in Form 4A and


• And in the case of renewal of this it shall be endorsed w a note of
such renewal and date of its intended expiry
- S 68A x capable of transfer

3.2.3 Purposes

- s 65(2)
- s 69
- Form 4A para 4

Mohamed v Kunji Mohidin [1967] 1 MLJ 96 (FC).

3.2.4 Duration of TOL

3.2.4.1 TOL

- s 67(1) term duration


- s 67(3) subject to condition TOL, land admin may renew for not more than 1 year
“may” no obligation
- Proviso to s 67(3) shall noy be 3 renewal unless prior written approval of authority

3.2.4.2 TOL for the purpose of public exhibition or entertainment

- Proviso to s 67(1) eg. funfair

3.2.4.3 Combined TOL & Permit

- s 69(1) a. purposes
- b. max oeriod 5 years

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3.2.4.4 Land Administrator under No Duty To Renew TOL

Pappo v Veeriah [1965] 1 MLJ 127.


Teh Bee v K Maruthamuthu [1977] 2 MLJ 7 (FC).

3.2.4.5 Backdated TOL

I. K. Ibrahim Idrus v Lee Yu Mei [1981] CLJ (Rep) 157.

3.2.5 The Rights Of And Restrictions On TOL Holder

3.2.5.1 Exclusive Possessory and Not Proprietary Right

Julaika Bivi v Mydin [1961] 1 MLJ 310.


Previous TOL holder gave permission. P now want to evict D, D argue he was given
permission to stay on land. P can sue for trespass. He has right to possession under TOL/
Once previous TL expire, permission automatically revoke. Need to have authorization
from current TOL holder/
Mohamed v Kunji Mohidin [1967] 1 MLJ 96 (FC).
There 2 TOL holder, cannot exclude each other
1 is given license to pluck coconuts, the other 1 is given license to rear poultry
A cut down trees (cause of action). The trees were not planted by R. Given damages for
loss of profit from coconut because TOL was granted for that. Cannot claim for the trees.

3.2.5.2 No Assignment of TOL

- s 68

Murugesan v Krishnasamy & Anor [1958] 1 MLJ 92.

Paruvathy v Krishnan [1983] 2 MLJ 121 (FC) Narayanan


v Kannamah [1993] 3 MLJ 730.
Tindok Besar Estate Sdn Bhd v Tinjar Co 1979] 2 MLJ 229.
Laguna De Bay Sdn Bhd v Majlis Perbandaran Subang Jaya [2014] 7 MLJ 545; [2015] 2
MLJ 509 CA; [2015] 1 CLJ 357 CA
There was an appeal, whether license agmt amounted to assignment or not.
Transfers/dealings not amount to assignment of TOL
yz

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3.2.5.3 Termination of TOL Upon Death/Dissolution

- s 68

Mohamed Said v Fatimah [1962] 1 MLJ 328.


Pappo v Veeriah [1965] 1 MLJ 127
Fatimah v Moideen Kutty [1969] 1 MLJ 72 (FC).
Narayanan v Kannamah [1993] 3 MLJ 730.

3.2.5.4 Sale of House Built on TOL Land

Hee Cheng v Krishnan [1955] 1 MLJ 103.


Ang Toon Chew v Sons (Malaysia) Sdn Bhd v Wakil-Wakil Diri Bagi Mohamed Taib
Yusoff, Si Mati [1998] 5 MLJ 481; [1997] 2 CLJ 687.
Cf Cheo Lean How v Fock Fong Looi [1985] 2 MLJ 440.

3.2.5.5 Tenancy of House Built on TOL Land

Govindaraju v Krishnan [1962] 1 MLJ 334. Letting of monthly tenancy of 2 rooms in


house built on state land
Ban Seng v Yap Pek Soo [1967] 2 MLJ 156.

3.2.5.6 Lease Agreement of Kilns on TOL Land

Tan Bok Seong @ Tan Leong Tian v Sin Bee Seng & Co. (Port Weld) Sdn Bhd & 4 Ors
[1995] 4 BLJ 362 lease agreement of kilns)equipment) on land under TOL

3.2.5.7 Application of Equitable Estoppel Against TOL Holder

Paruvathy v Krishnan [1983] 2 MLJ 121 (FC) land subject to TOL can never be part of
assets of deceased

3.2.5.8 Rights Over Authorized Structure/Crops on TOL Land Upon Termination

Public Prosecutor v Chin Keow [1947] 1 MLJ 55.

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Pappo v Veeriah [1965] 1 MLJ 127. House would be property of state. Matter of discretion
whether state would allow compensation or to demolish it

3.2.5.9 No Right to Compensation Against A Subsequent TOL Holder

Teh Bee v K Maruthamuthu [1977] 2 MLJ 7 (FC). TOL may be cancelled anytime before
expiry. If state cancels so, compensation person who occupied land on tol can never
acquire a right to be compensated by subsequent holder of TOL or by subsequent RP for
any expense he might incur over land during period in which he occupied under TOL

3.2.6 Cancellation of TOL

- Form 4A para 5

3.3 Permit For Extraction, Transportation And Removal Of Rock Material

3.3.1 General

- Definition of ‘rock material’ in s 5


- ss 70 & 71
- s 72(3): Form 4C

Wu Siew Ying (t/a Fuh Lin Bud-Grafting Centre) v Gunung Tunggal Quarry &
Construction Sdn Bhd & Ors [2008] 2 MLJ 69
Lim Kow & Kong Minerals Sdn Bhd v Pentadbir Tanah Daerah Gombak [1992] 2 CLJ
Rep 769

3.3.2 Duration

- s 72(1)

3.3.3 Nature of Rights

- s 73
- Also see Form 4C Permit To Remove Rock Material

Marble Terrazo Industries Sdn Bhd v Anggaran Enterprise Sdn Bhd [1991] 1 CLJ 109.
Puspita Corporation Sdn Bhd v Berjuntai Tin Dredging Bhd [1994] 3 MLJ 251 (SC).

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3.3.4 Effect On Conditions Affecting Land

- s 75

3.4 Permit to Use Air Space above State land and Reserved land

3.4.1 Purpose & Duration

- s 75A

3.4.2 When it may be granted

- s 75B

3.4.3 Prohibition on assignment

- s 75E

3.4.4 Deposit

- s 75F

3.4.5 Cancellation

- s 75G

3.5 Alienation

3.5.1 Introduction

‘alienate’: s 5

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means to dispose of State land in perpetuity or for a term of years, in consideration of the
payment of rent, and otherwise in accordance with the provisions of section 76 or, when used
in relation to the period before the commencement of this Act, to dispose of State land in
- perpetuity or for a term of years under a previous land law (not being a law relating to
mining);
- ‘alienated land’: s 5
alienated land
means any land (including any parcel of a subdivided building) in respect of which a registered
title for the time being subsists, whether final or qualified, whether in perpetuity or for a term of
years, and whether granted by the State Authority under this Act or in the exercise of powers
- conferred by any previous land law, but does not include mining land;

Philip Hoalim Jr v The State Commissioner, Penang [1976] 2 MLJ 231 (PC).
Evergreen Frontier (M) Sdn Bhd v The Director of Lands and Surveys, Sabah & Anor
[2005] 2 MLJ 644.

- s 76

Associated Pan Malaysia Cement Sdn Bhd v Westwood Development Sdn Bhd [2014] 7
MLJ 394

3.5.2 Titles Under Which Land May Be Alienated

- See s 77(1)
(1) The titles under which State land may be alienated under this Act are--
(a) Registry title and Land Office title (being forms of final title), and
(b) qualified title.

3.5.3 How Alienation Is Effected

- See s 78(1) & (2):

(1) Final title – Chapter 3 of Part 5 (ss 83-92)


(2) Qualified title – Chapter 2 of Part 11 (ss 180-182)

3.5.4 When Is Alienation Effective

- s 78(3)

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Dr Ti Teow Siew & Ors v Pendaftar Geran-Geran Tanah Negeri Selangor [1982] 1 MLJ
38.
T Mohan A/L Ellen & Ors v Pentadbir Tanah Daerah Petaling [2000] 2 MLJ 431
Suharta Development Sdn Bhd v Ho Lik Sdn Bhd [1994] 1 CLJ 407
North East Plantations Sdn Bhd v Pentadbir Tanah Daerah Dungun & Anor [2011] 4
CLJ 729
Piagamas Maju Sdn Bhd v Pengarah Tanah dan Galian Negeri Selangor [2013] 2 MLJ
97
Mimpin bt Kassim & Anor v Kerajaan Negeri Selangor Darul Ehsan & 7 Ors [2013]
AMEJ 0355
Sungei Wang Development Sdn Bhd v Pentadbir Tanah Ulu Langat & 2 Ors [2014]
AMEJ 0983
Pembinaan Batu Jaya Sdn Bhd v Pentadbir Tanah dan Galian Selangor & Anor [2016] 5
CLJ 250

3.5.5 Payment Of Land Revenue

- s 81(2)

Teh Bee v K Maruthamuthu [1977] 2 MLJ 7 (FC).

3.5.6 Conclusiveness of the Register Document Of Title

Teh Bee v K Maruthamuthu [1977] 2 MLJ 7 (FC).


Tan Chiw Thoo v Tee Kim Kuay [1997] 2 MLJ 221 (FC).

3.5.7 Effect of Alienation

Tan Chiw Thoo v Tee Kim Kuay [1997] 2 MLJ 221 (FC)
Glen Waverley Sdn Bhd v Pengarah Tanah dan Galian Negeri Selangor & Anor [2001] 4
MLJ 122, at p. 133

3.5.8 Whether Appealable Under Section 418

Sykt Perusahaan Seri Connolly Sdn Bhd v Pengarah Tanah dan Galian, Negeri Perak &
Anor [hhh.

17/10/2019

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3.6 Disposal of Underground Land
92A definition of underground land
3.6.1 Purpose

3.6.2 The Forms of Disposal

- alienation, the granting of the right to use, and lease


- over underground State land, alienated land, or reserved land

3.6.3 Alienation of underground land

1) underground land below State land: s 92C basically provides for the right to –
stratum – particular layer, C and D difference; D – independent use, can be divided
into stratums of land, diff layer diff purposes
2) underground land below alienated land with depth specified: s 92B(1)(a) & (4), s
92C
3) underground land below alienated land without depth specified: ss 92B(1)(a),
92D(1)(b)

- To whom alienation may be effected: ss 43, 92D(1)


- Type of title: s 92C(1)

3.6.4 Granting of right to use underground land below alienated land

- S 92D(1)(a)
- Premium: s 92D(5)(a)
- The rest of land remains State land: s 92D(7)

3.6.5 Lease of underground reserved land

1) A lease of underground land below reserved land: s 92F(1)(a)


2) A lease of underground land below the underground land over which a lease as in s
92F(1)(a) has been granted: s 92F(1)(b)
3) A lease of underground land which is vested in the State Authority [s 92E(3)] below
reserved land over which a lease with depth specified [s 92F(1)(b)] has been granted
 Chip Aun Realty Sdn Bhd 2015 2 AMR 568 – acquisition of underground portion below the
land would have been sufficient; acquired und land as necessary so the land above belongs
to them. Part V (A) s92D this is We are ready to apply to SA to apply for this right and grant
for the use of MRT. And that they could still keep land above.

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 Held: If A1 is desirous to have,.,.. alternatively they should have had applied for the right, it
is too late

3.6.6 Granting of a right to use underground land below the leased reserved land

- The lessee of reserved land may apply: s 92G


- The use of the underground land: s 92G(1)
- Further payment: s 92G(4)(a)
- May be over the whole or a portion of the underground land, ss 92G(4)(d), (5)

Summary
COVERED ALL DISPOSALS
1) RESERVATION
2) LEASE OVER RESERVE LAND
3) TOL
4) PERMIT TO EXTRACT ROCK
5) AIRSPACE
6) ALIENATION – only this has propriety rights

Only state auth has power to effect disposal


1. look at type of land s42
2. definition of land

4 REVERSION
Opposite of disposal – when land goes back to SA
S 46(1) (1) Without prejudice to the provisions of any other written law for the time being in
force, alienated land shall
revert to and vest in the State Authority in the following circumstances--
(a) upon the expiry of the term (if any) specified in the document of title thereto;
(b) upon the publication in the Gazette of a notice under section 130 (that is to say, a notice
published on the making of an order of forfeiture by the Land Administator on the grounds of
non- payment of rent or breach of condition);
(c) in the circumstances mentioned in sections 351 and 352 (which relate respectively to the
death
of a proprietor without successors, and the abandonment of title by proprietors); and
(d) upon the surrender thereof in accordance with the provisions of Part Twelve;
and any of alienated land affected by encroachment by the sea or any river shall revert to and
vest in the
- State Authority in accordance with section 49.

S46(3) deals w lease license and permits


(3) Leases of reserved land, and licences and permits issued under this Act, shall terminate at
the expiry of the term for which they were granted or issued, or on the occurrence before that
time of any event specified in that behalf in the lease, licence or permit, or in any rule made by
the State Authority under section 14; and licence or permit issued under this Act shall also
terminate on the death or dissolution, except as provided in

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section 416, before that time of the person or body for the time being entitled to the benefit
thereof.
- s 47(1)buildings found on land
(1) On the reversion of any alienated land to the State Authority, or the
determination of any lease of reserved land, or of any licence or permit issued by
the State Authority with respect to any land under this Act or any previous land law,
there shall, subject to subsection (3), vest in the State Authority all buildings on
the land (by whomsoever erected) other than any of temporary construction and
capable of removal., [(2) & (3) when will it be payable]

5 NO ADVERSE POSSESSION been in land so long thus acquire title or right; this
is not allowed

5.1 General

- ss 48, 425, 341

Govt of the State of Negeri Sembilan & Anor v Yap Chong Lan & Ors [1984] 2 MLJ 123
Sidek bin Haji Muhamad & Ors v Govt of the State of Perak & Ors [1982] 1 MLJ 313
Scheme like felcra, the family has been cultivating land for years, promised will give 3
acres of land after successful interview, State director of land? Reported by Utusan will
give 5 acres. Some successful some not. Appellants not successful , given notice to vacate.
As sought declaration they have adverse possession. FC Held: it is clear beyond doubt
that they cannot succeed because they are squatters. Squatters have no right either in law
or eqt. It does not lies in their mouths to assert..
- s46 NLC against them. S78 alienation in accordance of NLC. EQT right
or interest? Illegal occupation of state land is an offence s425. Court of EQT will
never assist squatters o resist an order of possession illegally ; it will never
intervene in aid of wrongdoers
- Effect of promise by State Director assuming he made the promises as
reported? Held: ‘he had no authority to bind the government to alienate State
land to the settlers. For this is a formal resolution of the
Yap Chong lan – SA is the ruler not even MB, officer…
Chong Wooi Leong & Ors v Lebbey Sdn Bhd [1998] 2 MLJ 644 (CA)
Shamsudin bin Che Mat & Ors v Datuk Bandar Kuala Lumpur [2000] 4 MLJ 177
Tetuan Tokoyaki Property Sdn Bhd v Sam Kok Sang @ Tham Sow Seng & Ors [2001] 1
MLJ 585
Nik Ibrahim bin Abdul Rahman & Anor v Pentadbir Tanah Jajahan Gua Musang & Ors
[2001] 5 MLJ 59
Muniandy a/l Subramaniam & Ors v Majlis Perbandaran Langkawi Bandaraya
Pelancongan & Anor [2003] 6 MLJ 177

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Datuk Bandar Majlis Bandaraya Shah Alam & Anor v Yusuf bin Awang & Ors [2007] 7
MLJ 327 (CA)
Liew Kar Tay & Ors v Superintendent of Lands & Surveys Limbang Division & Anor
[2014] 9 MLJ 401

- Sarawak Land Code, s 131

Jamir Hassan v Kang Min [1992] 2 MLJ 46


Yayasan Pelajaran Bahagian Pertama Sarawak v Lim Teck Hai & Ors [2008] MLJU 761

- Sabah Land Ordinance, s 6

Borneo Housing Mortgage Finance Bhd v Time Engineering Bhd [1996] 2 MLJ 12 Ng
Kon Yu v Sakim bin Saiking & Ors [2006] 3 MLJ 533

5.2 No Application of Equitable Estoppel Against Public Authority

Govt of the State of Negeri Sembilan & Anor v Yap Chong Lan & Ors [1984] 2 MLJ 123
Doctrine of equitable estoppel may not be raised. [sik:Estoppel:I make promise, you
acted on it, after you’ve done I did not give] In law they would not have .. so they argue
what about equitable interest? It would be creating sth ouside the NLC

Koperasi Kasuma (M) v Pengarah Tanah dan Galian Selangor & Ors [1982] 1 MLJ 313

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6 FORFEITURE

6.1 General

- Part Eight of the NLC deals w alienated land


130 onwards

6.2 Grounds Of Forfeiture grounds of forfeiture

- s 100 non-payment of sum demanded – refers to annual rent payable for alienation
s76 s93 debt due to SA (usually landowner will challenge forfeiture)
- s 127 breach of condition
F

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Malayan Banking Bhd v Pentadbir Tanah Daerah Kuala Langat Kerajaan Negeri
Selangor [2012] MLJU 253

6.3 Forfeiture For Non-Payment Of Land Revenue

6.3.1 Time of Payment of Rent

- s 94(1), (2) & (3)

6.3.2 Time When Rent In Arrear

- s 94(2)

6.3.3 Actions To Be Taken By The State Authority For Rent In Arrear

- s 97(1) & (2) s97(1) Form 6A serve on proprietor (2) note


- s 98(1) I) served to ppl w interest; eg. Charge, lessee, easement holder [registered
interest], 2)lien holder [ dealing] lien does not require registration (have to enter
caveat – how to prove he is lien holder), lien vs tenancy
- 3)how to protect interest if you are tenant, not registered, make endorsement on
RBT; only if you have made endorsement, only they will serve you ; 4) person
protected by caveats [caveat entered to freeze dealings, cannot register land]
caveator – may be one who has dispute with the landowner

Publish on newspaper – can work as a service as well; person cannot say did not know

THESE PPL ARE DIRECTLY AFFECTED BY WHAT WILL HAPPEN TO THE LAND,
MAY WANT TO PAY TO PROTECT THEIR INTEREST, including caveator

Pow Hing & Anor v Registrar of Titles, Malacca [1981] 1 MLJ 155.
Khoo Cheng & Ors v Pentadbir Tanah Muar [2008] 3 CLJ 534.

6.3.4 Who May Pay

- s 98(1)
- s 98(2): by charge
- s 98(3)(b): by lessee, sub-lessee or tenant
- s 98(3)(a): recoverable by civil action

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s98 YBK v Hulu Selangor
6.3.5 Effect Of Payment Of Rent

- s 99 notice no effect and note of service cancelled

6.3.6 Effect Of Non-Payment Of Rent

- s 93
- s 100

6.3.6.1 No Extension of Time Period Specified In Form 6A

Pemungut Hasil Tanah Kota Tinggi v UMBC [1981] 2 MLJ 264.


6.3.6.2 Constitutionality of s 100

East Union (Malaya) Sdn Bhd v Govt of the State of Johor & Govt of Malaysia [1981] 1
MLJ 151.

6.3.6.3 An Order Under s 100

Pow Hing & Anor v Registrar of Titles, Malacca [1981] 1 MLJ 155.
Khoo Cheng & Ors v Pentadbir Tanah Muar [2008] 3 CLJ 534.

6.4 Forfeiture For Breach Of Condition

6.4.1 Types Of Conditions

- s 103(1)
- Conditions requiring continuous performance
- Conditions subject to a fixed term
condition
does not include any restriction in interest, or any condition expressed or implied in any
agreement to which the State Authority is not a party;
condition requiring continuous performance
means any condition which requires the proprietor of any land to do, or refrain from doing, any
act during the whole of the period for which the land is alienated, or for so much of that period
as remains--
(a) after the date on which the condition takes effect, or
(b) after the expiry of any particular period specified in the condition, or
(c) after the occurrence of any particular date or event so specified;
condition subject to a fixed term
means any condition which requires the proprietor of any land to do any act

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before, or refrain from doing any act until, the expiry of any particular period, or
the occurrence of any particular date or event, specified in the condition.
- Page

6.4.2 When A Breach Of Condition Arises

s125(1) & (2) (1) A breach of a condition requiring continuous performance shall arise so soon, and
continue so long, as
the condition is not complied with.
(2) A breach of a condition subject to a fixed term shall arise--
(a) in the case of a condition requiring the doing of any act within any time (being the time
specified therein, or that time as extended under section 107) upon the expiry of that time
without the act having been done;
Page 110
(b) in the case of a condition requiring any act to be refrained from until any time, upon the doing of that
act before that time

s 126 Where any condition consists of two or more separate obligations or liabilities, a failure to fulfill any
of those obligations or liabilities shall constitute a breach of the condition.

6.4.3 Determining Whether A Breach Of Condition Arises

Collector of Land Revenue Johor Bahru v South Malaysia Industries Bhd [1978] 1 MLJ
130 whether breach committed, is a matter of construction and compare w what was
done. Storing of industrial chemical (urea) not legitimate purpose of the.. not light industry,
it is a continuing breach
Lam Eng Rubber Factory (M) Sdn Bhd v State Director, Kedah & Anor [1994] 1 CLJ 179

6.4.4 Effect Of Breach Of Condition

- s 127(1)(a) & (b)


s 129 129 Action to enforce forfeiture for breach of condition
(1) The Land Administrator shall take action under this section wherever any alienated land is liable under
section 127 to forfeiture for breach of condition and—
(2) In either of the circumstances aforesaid, the Land Administrator shall--
(a) cause a notice in Form 7B to be served on the proprietor of the land; and
(b) cause a copy of that notice, to which there shall be appended the additional notice set out in
the supplement to that Form, to be served on the like persons and bodies as those on whom
notices relating to rent are required to be served by sub section (1) of section 98.
(3) Upon the service of any notice under subsection (2), the Land Administrator shall (unless such a note
has
already been endorsed under section 128) endorse, or cause to be endorsed, on the register document of
title to the land in question a note to the effect that the land is subject to action for breach of condition.
(4) Upon the date, and at the time and place, specified in any such notice, the Land Administrator shall
hold
an enquiry in accordance with the provisions of this Act, and, on the conclusion thereof--

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(a) if it appears to him that the breach has been remedied, shall so declare by order, and shall
cancel or cause to be cancelled any note endorsed under this section or section 128;
(b) if it appears to him just that time (or where a notice under section 128 has already been served
in respect of the breach, further time) should be allowed for remedying the breach, shall make
an order specifying the action to be taken for that purpose, and the time within which it is to be
taken;
(c) in any other case, shall take temporary possession of the land as he may be directed by the
State Authority or in the absence of such direction, make an order declaring the land forfeit to
the State Authority.
(5) The making of an order under paragraph (b) of subsection (4) shall operate as a waiver by the State
Authority, conditional upon strict compliance with the requirements thereof, of the right of forfeiture
existing
by reason of the breach to which the order relates; and--
(a) if the order is complied with, any note endorsed under this section or section 128 shall be
cancelled accordingly;
(b) if the order is not complied with, the Land Administrator shall, on the expiry of the period
specified therein, take temporary possession of the land as he may be directed by the State
Authority or in the absence of such direction, make an order declaring the land forfeit to the
State Authority.
(6) Where temporary possession is taken by the Land Administrator under paragraph (c) of subsection (4)
or
paragraph (b) of subsection (5), the following provisions shall apply--
(a) the State Authority or any person or body appointed by it shall have power to remedy the
breach at its or the person's or body's own expense in any manner or form the State Authority
considers appropriate;
(b) upon completion of effecting the remedy or within such period as the State Authority considers
appropriate after effecting such remedy, possession shall be returned to the proprietor with the
requirement that the land be maintained in a satisfactory state in view of the remedy and that
the State Authority, person or body concerned be reimbursed for the whole or part of the
expenses incurred in carrying out such remedy either in one sum or in instalments; and (c)
(a) he is of opinion that the taking of action under section 128 would not be appropriate; or
(b) the proprietor of the land has failed to comply with any notice served on him under that section
- Exceptions:
s 127(1A) (1A)
(a) Upon any breach as is referred to in subsection (1) arising, the Land Administrator may, instead
of taking action under section 128 or 129, serve a notice in Form 7E upon the proprietor,
requiring him to show cause why a fine should not be imposed in respect of such breach.
(b) Upon failure by the proprietor to show cause to the satisfaction of the Land Administrator, the
Land Administrator may make an order for the payment of a fine of not less than five hundred
ringgit, and in the case of a continuing breach, a further fine of not less than one hundred
ringgit for each day during which the breach continues. Pay fine then settle wont goto 129
i) s 128
up to them where they wanna start,127 pay fine; 128 remedy breach, land
admin also has a right to straight start at 129

6.4.4.1 Exception 1: Imposition Of Fine

- s 127(1A)(a) & (b)

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- s 127(1B)
- s 127(1C)

6.4.4.2 Exception II: Securing Remedy Of Breach Of Condition

- s 128(1)
- s 127(4)
- s 128(2) & (3)

AmBank (M) Bhd v Pentadbir Tanah Daerah Gombak & Another case [2014] 8 CLJ 34
Hamidah binti Mohd Khalid & 2 Ors v Pentadbir Tanah Daerah Gombak [2016] AMEJ
1221

6.4.5 Circumstances Where The Land Would Cease To Be Liable To Forfeiture

- s 127(3)
- s 127(2)

6.4.6 Action To Enforce Forfeiture

- s 129(1): conditions
- s 129(2): service of a notice in Form 7B
- s 129(3): a note of service to be
- s 129(4: enquiry

- S100 The Land Administrator shall not during the period specified in any notice
under section 97 accept the tender by or on behalf of any person or body of a lesser
amount than the sum thereby demanded; and if by the end of that period the whole of that
sum has not been tendered to him, he shall thereupon by order-declare the land forfeit to
the State Authority, and the provisions of Part Eight shall have effect with respect thereto
accordingly.

- (6) Where temporary possession is taken by the Land Administrator under


paragraph (c) of subsection (4) or
paragraph (b) of subsection (5), the following provisions shall apply--
(a) the State Authority or any person or body appointed by it shall have power to remedy
the breach at its or the person's or body's own expense in any manner or form the State
Authority considers appropriate;

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(b) upon completion of effecting the remedy or within such period as the State Authority
considers appropriate after effecting such remedy, possession shall be returned to the
proprietor with the requirement that the land be maintained in a satisfactory state in view of
the remedy and that the State Authority, person or body concerned be reimbursed for the
whole or part of the expenses incurred in carrying out such remedy either in one sum or in
instalments; and (c)

6.5 When Does Forfeiture Take Effect

6.5.1 General

- s 130(1) & (2) (1) As soon as may be after the making of an order under section 100 or 129 with
respect to any land (that is to say, an order declaring the land forfeit to the State Authority for non-
payment of rent or the breach of any condition) the Land Administrator shall publish in the Gazette a
notification of forfeiture in Form 8A; and upon such publication, the forfeiture shall take effect as
mentioned in section 131.

(2) Copies of any notification published under subsection (1) shall be published in accordance with the
provisions of section 433, and the Land Administrator shall, as soon as may be after the notification is
published, register or cause to be registered a memorial thereof upon the register document of title to the
land in question.

NOT ENOUGH IF JUST PUBLISH IN GAZETTE NOT ENOUGH IN PUBLISHING ACCORDING TO


S433… BUT NEED TO REGISTER MEMORIAL

PURPOSE: TO INFORM

WHY MUST ACCORDING TO 433 - one of them : paste on house etc

Tell purchaser don’t deal with this you will be cheated

Any provision of this Act requiring a copy of a notice or notification affecting land to be published in
accordance with the provisions of this section shall be construed as requiring a copy of the notice or
notification to be--
(a) affixed in a conspicuous position--
(i) on the land and on the penghulu's office or balai in the area in which the land is situated;
and
(ii) in that area, on such court-houses and mosques (if any) and in such markets and other
public places (if any) as the State Director thinks fit; and
(b) where the State Authority considers that publication in a newspaper is desirable, published in
such newspapers circulating in the State as the State Director thinks fit

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24/10/2019 WEEK 7(2)

6.5.2 As Soon As May Be After The Making Of An Order Under s 100 or s 129
Must be made under 100 or 129, then notification 130

Was it a non compliance, order of forfeiture must be made separately, can make simple
note by ( ) Form 8A =/= order in s100 ;

Johor Coastal v Pentadbir – not open to LA to make declaration under s100 at amy time,
failure to do so fatal procedural non compliance

Pow Hing & Anor v Registrar of Titles, Malacca [1981] 1 MLJ 155.

6.6 Annulment Of Forfeiture order of forfeiture

- s 133(1) & (2) up to their discretion, cf 134 by appeal


133 Power of State Authority to annul forfeiture, or re-alienate to previous proprietor on new
terms,
etc
(1) Any person or body who was the proprietor of any alienated land immediately before its forfeiture
under this Act may at any time apply to the State Authority for the annulment of the forfeiture.
(2) The State Authority may in its absolute discretion refuse or allow any petition under this section, and, if
it allows the petition may do so conditionally upon payment by the petitioner--
(a) if the forfeiture was for non-payment of rent, of such penalty, not exceeding six times the sum
which he was required to pay by the notice of demand served on him under section 97, as the
State Authority may think fit to impose;
(b) if the forfeiture was for breach of any condition, of such amount as the State Authority may
determine in respect of the expenses occasioned by the forfeiture.
(3) The refusal of any petition under this section shall not be taken to prejudice the power of the State
Authority to re-alienate the land to the previous proprietor at any time; and, for the purposes of any such
realienation, the State Authority shall, at the time when it gives approval thereto, re-determine as it may
consider appropriate the various matters specified in subsection (2) of section 79

UMBC & Anor v Pemungut Hasil Tanah, Kota Tinggi [1984] 2 MLJ 87.

6.7 Effect Of Forfeiture

- s 131

Beh Lee Liang v Chew Sah Suak & Anor [1995] 4 MLJ 397.

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6.8 Restrictions On Re-Alienation of Forfeited Land

- s 132(1) & (2)


132 Land not to be re-alienated, etc, during period for appeal against forfeiture
(1) Where any land has reverted to the State Authority by reason of the taking effect of any forfeiture
under
this Act, the State Authority, subject to subsection (2), shall not re-alienate or otherwise dispose of it at
any
time before--
(a) the expiry of the period of three months during which (under section 418) an appeal lies to the
Court against the order of the Land Administrator under section 100 or 129, as the case may
be; or
(b) if such an appeal is lodged during that period, the determination of the appeal and of any
proceedings consequent thereon.
(2) The provisions of subsection (1)--
(a) shall be without prejudice to the power of the State Authority under subsection (2) of section
133 to annul the forfeiture at any time on a petition in that behalf by the person or body who
was the proprietor of the land immediately before the forfeiture took effect; and
(b) shall not prevent the State Authority from re-alienating the land to that person or body at any
time as mentioned in subsection (3) of section 133.
Page 114
(3) So long as the provisions of subsection (1) apply to any land, no issue document of title thereto which
may have been surrendered to, or otherwise obtained by, the Land Administrator shall be
destroyed.

6.9 Challenging The Validity Of Forfeiture

(4) The provisions of subsection (1) shall not affect the right of any person or body to bring an action of
damages against the State Authority, or (subject to the provisions of section 22) against any officer
appointed by the State Authority, in respect of any act or thing wrongfully done, or ordered to be done or
omitted to be done, in connection with any forfeiture under this Act.

s 134(1) time period, subject matters [ appeal against the order in 100 or 129]
(1) The validity of any forfeiture under this Act shall not be challenged in any court except by means of, or
in
proceedings consequent upon, an appeal under section 418 against the order of the Land Administrator
under section 100 or, as the case may be, 129; and, notwithstanding anything in any other written law, no
such appeal shall be commenced after the expiry of the period of three months allowed for the bringing
thereof by the said section 418.
That’s why LA need to make order separately either under 100 or 129 then..
- s 134(4)

can only challenged on either ground 2 grounfs


s134(2)
6.9.1 Three-month period: s 418(1) read. Appeal must be done within 3 months
[ limitation period generally for contract and tort 6 years, NLC specify]

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Khoo Cheng & Ors v Pentadbir Tanah Muar [2008] 3 CLJ 534.

6.9.2 Wrongdoing by Officer Appointed by SA: s 134(4)

Bagan Serai Housing Estate Sdn Bhd v Pentadbir Tanah Daerah, Daerah Seberang Perai
Tengah & Anor [2002] 2 CLJ 237.

6.9.3 Grounds Of Challenge Against The Forfeiture

- s134(2) if read UMBC you will know 134(2)


(2) No order of the Land Administrator under section 100 or 129 shall be set aside by any court except
upon the grounds of its [the order] having been made contrary to the provisions of this Act [exhausted], or
of there having been a failure on the part of the Land Administrator to comply with the requirements of
any such provision; and no such order shall be set aside by reason only of any irregularity in the form or
service of any notice [because mere irregularities unless it is significant]under Chapter 2 of Part Six or, as
the case may be, Chapter 5 of Part Seven unless, in the opinion of the court, the irregularity was of a
significant nature.

Implication:
1. exhausted
2. contrary to act
3. GR no order set aside just because mere irregularity , Exception : unless it is of a
significant nature in opinion of court
Eg. Irregularities in service of notice is it a ground? It depends. If mere irregularity no,
unless…

Eg. Show I did pay, so order should not be made under 100, contrary to the provision

Khoo Cheng & Ors v Pentadbir Tanah Muar [2008] 3 CLJ 534
Pow Hing & Anor v Registrar of Titles, Malacca [1981] 1 MLJ 155
UMBC & Anor v Pemungut Hasil Tanah, Kota Tinggi [1984] 2 MLJ 87

This is why LA must make order separately, because failure to do so is a fatal non-compliance

133 vs 134 – SA not bound to


133 no need reason for forfeiture

If fail in 134 still can appeal to SA in 133 to cancel forfeiture. [NLC provided sufficient remedies,
so equitable remedies cannot be given by court – UMBC ][other courts say this is sufficient
remedies for relief on forfeiture but not othets]

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Case 1

- no note of service
▪ Why important? There could be other parties of interest. Intending
purchasers…
- No note of service copies of form 6A on United Asian Bank
- No order under 100/129
▪ Collector declared forfeiture referring to form 8a no separate
- No memorial of form 8A in gazette [130 as soon as may be after order in 100 or
129]
These are significant nature.
Based on Pow Hing v Registrar of Titles
- S97(2) note of service of Form 6A to be endorsed on RDT
- S98 copy of Form 6A to listen bodies/ …– so that they can pay
- There shud be separate order under s100 distinct from form 8A. Form 8A only
notice of reversion that forfeiture had taken place not order
- Form 8A seven months later, not as soon as possible
- no proof shown published copies of Form 6A memorial as required under 134(2)
- s97(2), 100 , 130(1) clearly mandatory, forfeiture set aside

Piece of land GCL, decread, in Muar.


LPG RECEIVED form 6A served at diff address same road. 45G serve,land is 18

Issue form 8A after 10months, served at 5 areas but dont have particulars of land
Published 2003 03 27 publication of form 8A in gazetted refer land as tlo2326
LA made memorial of Form 6A, Form 8A, endorse date of service as Form 6A as on 18/6 instead of
25/2/2005

Khoo Cheng v Pentadbir Tanah Muar


- Form 6A served on stranger while s97(1) on RP
- Note of service 18/6/2003 – after a year(no use dyy after so long defeats
purpose)
▪ S97(2) after service as soon

- “failure was almost total”

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