SUN WEI XIANG (A158811)

1. Read Section 42 of the National Land Code 1965 carefully and decide whether the
State Authority has power to do the following:-

a) To alienate State land in perpetuity.

b) To alienate foreshore in perpetuity.

c) To reserve state land for public purpose.

d) To grant lease for 33 years of reserved land.

e) To permit occupation to state land under T.O.L. for the purpose of quarrying.

f) To permit occupation to mining land under T.O.L. for breeding prawns.

g) To permit extraction of rock material from land already alienated to Nada.

h) To permit extraction of rock material from alienated land for the purpose of
obtaining metal.

Answer:

a) Section 42(1)(a) states that subject to subsection (2), the State Authority is
empowered to alienate State land in accordance with section 76. Section 76(aa) deals with the
alienation of State land in perpetuity on three conditions: (i) where the Federal Government
requires the State Authority to cause a grant in perpetuity to be made to the Federal
Government or to a public authority or where the Federal Government and the Government
of the state agree to make a grant in perpetuity to the Federal Government; (ii) the State
Authority is satisfied that the land is to be used for a public purpose; or (iii) the State
Authority is satisfied that there are special circumstances which render it appropriate to do so.
So, yes, the State Authority can alienate State land in perpetuity under section 42(1)(a) read
with section 76(aa).

b) The State Authority has the power to alienate foreshore under section 42(1)(a) read
with section 76(aa). However, section 76 also explains that when alienating foreshore under
paragraph (aa), the State Authority can only grant a period of alienation not exceeding 99
years. So, no, the State Authority cannot alienate foreshore in perpetuity, except for a period
of maximum 99 years.
c) Section 42(1)(b) also empowers the State Authority to reserve State land, and grant
leases of reserved land, in accordance with the provisions of Chapter 1 of Part Four which
consist of sections 62, 63 and 64. Section 62(1) explicitly provides that the State Authority
may by notification in the Gazette reserve any State land for any public purpose. So, yes, the
State Authority can reserve state land for public purpose.

d) Although the State Authority is permitted to grant lease of reserved land under section
63, subsection (1) limits the period of lease to a maximum of 21 years. So, no, the State
Authority cannot grant a lease for 33 years of reserved land.

e) The State Authority has the power under section 42(1)(c) to permit the occupation of,
among others, State land under T.O.L. under the provisions of Chapter 3 of Part Four. Also,
section 42(1)(d) allows the State Authority to permit the extraction and removal of rock
material from any land, other than reserved forest, in accordance with the provisions of
Chapter 3 of Part Four. Before that, section 65 (of Chapter 2 Part Four) confers power to the
State Authority to give T.O.L. to, among others, State land. In turn, section 69 (of Chapter 2
Part Four) also provides for the issuance of a T.O.L. combined with a Chapter 3 permit for
the extraction and removal of any rock material. Section 70 (of Chapter 3 Part Four) further
confirms the power of the State Authority to permit the extraction, removal and transportation
of any rock material, otherwise than for the purpose of obtaining metal or mineral, from,
among others, State land. However, section 42(2)(b) bans the extraction or removal of rock
material from any land for the purpose of obtaining metal or mineral, which is fortified with
section 70. So, yes, the State Authority can permit occupation to state land under T.O.L. for
the purpose of quarrying.

f) Section 65(2) allows the State Authority to issue T.O.L. for any purpose other than
one prohibited section 42(2): (a) to dispose of any land for the purposes of mining (within the
meaning of any written law for the time being in operation relating to mining); (b) to permit
the extraction or removal of rock material from any land for the purpose of obtaining metal or
mineral; (c) to dispose of any land for the purpose of the removal of forest produce; or (d) to
alienate any land so as to have the effect of less than two-fifths of a hectare of land subject to
the category “agriculture” or to any condition requiring its use for any agricultural purpose
being held by more than one person or body, provided that the State Authority may, under
exceptional circumstances, alienate such land to more than one person or body
notwithstanding that it is less than two-fifths of a hectare. So, yes, the State Authority can
permit occupation to mining land under T.O.L. for breeding prawns.

g) Section 42(1)(a) allows the State Authority to alienate land under section 76 to Nada.
Under section 70 (of Chapter 3 Part Four), the State Authority has the authority to permit the
extraction, removal and transportation of any rock material from, among others, (b) alienated
land. So, yes, the State Authority can permit extraction of rock material from land already
alienated to Nada.

h) Section 42(2)(b) explicitly prohibits the State Authority to permit the extraction or
removal of rock material from any land for the purpose of obtaining metal or mineral. Under
section 70 (of Chapter 3 Part Four), there can only be a permit to extract, remove and
transport any rock material, but not a permit for the purpose of obtaining metal or mineral.
So, reading section 42(2)(b) with section 70, the State Authority cannot permit extraction of
rock material from alienated land for the purpose of obtaining metal.