LAND LAW 1LAND LAW 1

FORFEITUREFORFEITURE

Breach of conditionsBreach of conditions

Non-payment of rent due to SA

Breach of implied/express condition

Non-payment of rent due to Non-payment of rent due to SASA

S. 97 collector shall served on S. 97 collector shall served on the proprietor a notice of the proprietor a notice of demand in Fm 6A and the demand in Fm 6A and the service shall be endorsed by or service shall be endorsed by or at the instance of the Collector at the instance of the Collector on the RDT of the said landon the RDT of the said land

S. 98: Sum due to SA can be S. 98: Sum due to SA can be made by any person e.g. made by any person e.g. chargees, lessees who have chargees, lessees who have interest vested in the aid land, or interest vested in the aid land, or a lien holder, or a tenant or a a lien holder, or a tenant or a caveatee, where a supplement caveatee, where a supplement of Fm 6A is served on them by of Fm 6A is served on them by the Collector.the Collector.

S. 99: if the amount due is paid S. 99: if the amount due is paid in full within the stipulated time, in full within the stipulated time, the notice shall be ineffective the notice shall be ineffective and the Land Administrator shall and the Land Administrator shall cancel the note endorsed on the cancel the note endorsed on the RDTRDT

S. 100: if the amount due is not S. 100: if the amount due is not paid in full within the stipulated paid in full within the stipulated time, the Land Administrator time, the Land Administrator shall declare the land forfeit to shall declare the land forfeit to the SAthe SA

Breach of implied/express Breach of implied/express conditioncondition

2 categories of conditions:2 categories of conditions:

1.1. Cond. requiring continuous Cond. requiring continuous performanceperformance

2.2. Cond. subj to a fixed termCond. subj to a fixed term

(s. 103)(s. 103)

Cond. requiring continuous Cond. requiring continuous performanceperformance

Requires the proprietor to do or Requires the proprietor to do or refrain from doing any act during refrain from doing any act during the whole period whilst the land the whole period whilst the land is being alienated or as stated is being alienated or as stated further in s. 103further in s. 103

Cond. subj to a fixed termCond. subj to a fixed term Requires the proprietor to do or Requires the proprietor to do or

refrain from doing any act until the refrain from doing any act until the expiry of any particular period expiry of any particular period without the act being done or doing without the act being done or doing of the act before time (s.125)of the act before time (s.125)

E.g. the implied cond for agricultural E.g. the implied cond for agricultural land is that cultivation is to land is that cultivation is to commence within 12 mth from the commence within 12 mth from the relevant date. Failure to comply relevant date. Failure to comply would give rise to breach of cond. of would give rise to breach of cond. of something to be done within a something to be done within a particular period.particular period.

How LA is to deal with breach How LA is to deal with breach of condition?of condition?

1)1) To impose fine (s. 127) To impose fine (s. 127) -by serving Fm 7E asking -by serving Fm 7E asking proprietor to show cause. proprietor to show cause. -If proprietor fail to show cause -If proprietor fail to show cause LA may impose fine <rm500 LA may impose fine <rm500 for case of continuing breach for case of continuing breach and further fine of <rm100 for and further fine of <rm100 for each day during which the each day during which the breach continuesbreach continues

- fine paid, no action taken - fine paid, no action taken under s. 128 or 129 (s. 129 under s. 128 or 129 (s. 129 (1B))(1B))

- fine not pay, LA served Fm 7F - fine not pay, LA served Fm 7F o inform proprietor that action o inform proprietor that action under s. 128 or 129 will be taken under s. 128 or 129 will be taken upon expiry of 6 mths from the upon expiry of 6 mths from the date of service of the notice.date of service of the notice.(s.127(1C))(s.127(1C))

- land would not be forfeited if:- land would not be forfeited if: i) breach remedied;i) breach remedied; ii)in the case of a fixed term ii)in the case of a fixed term

cond.,no action yet to be taken cond.,no action yet to be taken under s. 128 or 129 before under s. 128 or 129 before expiry of 12 mths period from expiry of 12 mths period from the date the breach arose.the date the breach arose.

- Breach under s. 127 can be Breach under s. 127 can be remedied as:remedied as:

a) a case of +ve cond the doing a) a case of +ve cond the doing of every act or thingof every act or thing

b) in case of –ve cond the doing b) in case of –ve cond the doing of act or things necessary to put of act or things necessary to put land into its original state before land into its original state before the beach is committed.the beach is committed.

2)2) LA requirement to remedy LA requirement to remedy breach (s.128)breach (s.128)

- serve notice in Fm 7A, - serve notice in Fm 7A, requiring proprietor to remedy requiring proprietor to remedy breach within specified time.breach within specified time.- service of notice must be - service of notice must be endorsed on RDTendorsed on RDT- this section act as waiver by - this section act as waiver by the SA f its right to forfeit the the SA f its right to forfeit the land subject to strict land subject to strict compliance of the requirement.compliance of the requirement.

- if notice has been complied, - if notice has been complied, endorsement will be cancelled; if endorsement will be cancelled; if notice not comply LA shall take notice not comply LA shall take action under s. 129action under s. 129

3)3) To enforce forfeiture (s. 129) To enforce forfeiture (s. 129) upon non compliance of s. 127 upon non compliance of s. 127 & 128& 128

- LA serve notice in Fm 7B and - LA serve notice in Fm 7B and to serve supplement to those to serve supplement to those who have interest as in s. 98who have interest as in s. 98-service of notice shall be -service of notice shall be endorsed on RDTendorsed on RDT- an enquiry will be held on the - an enquiry will be held on the day, time & place specified in day, time & place specified in the notice.the notice.

- upon hearing the enquiry the - upon hearing the enquiry the LA may give any of the order LA may give any of the order under s. 129 (4)under s. 129 (4)a) if breach remedy, cancel a) if breach remedy, cancel endorsementendorsementb) require remedy to be done b) require remedy to be done within the time specifiedwithin the time specifiedc) take temporary possession as c) take temporary possession as directed by SA but if no direction directed by SA but if no direction given issue order land forfeit to given issue order land forfeit to SASA

Land before enforcement of Land before enforcement of NLCNLC

S. 53 states that there will be an S. 53 states that there will be an implied condition imposed by SA implied condition imposed by SA under s. 54under s. 54

The implied cond:The implied cond:

- country land, town land & - country land, town land & village land under Land Off Title, village land under Land Off Title, shall be used for agricultural shall be used for agricultural onlyonly

- land under Registry Title, shall - land under Registry Title, shall not be used for agriculture or not be used for agriculture or industryindustry

Case: Case: Garden City Garden City Development Bhd v Collector Development Bhd v Collector of Land Revenue, Federal of Land Revenue, Federal Territory [1982] 2 MLJ 98Territory [1982] 2 MLJ 98

S.130S.130

Forfeiture takes effect upon Forfeiture takes effect upon publish by the land administrator publish by the land administrator in the gazette a notification of for in the gazette a notification of for forfeiture in Fm 8Aforfeiture in Fm 8A

s. 131s. 131

Upon publication under s. 130, Upon publication under s. 130, the forfeiture takes effect:the forfeiture takes effect:

1)1) Land revert to SA, free from Land revert to SA, free from exiting or future encumbrancesexiting or future encumbrances

2)2) The land shall be forfeited The land shall be forfeited without compensation being pd without compensation being pd to any existing bldgto any existing bldg

3)3) Any amt of land revenue due Any amt of land revenue due to SA shall be distinguishedto SA shall be distinguished

s. 132s. 132

Land cannot be re-alienated Land cannot be re-alienated pending appeal vs the forfeiture pending appeal vs the forfeiture order.order.

h./ever the SA can still annul the h./ever the SA can still annul the forfeiture at any time upon forfeiture at any time upon petition made by the proprietor petition made by the proprietor and to re-alienate the land back and to re-alienate the land back to the proprietorto the proprietor

s. 133s. 133

Proprietor can apply for Proprietor can apply for annulment of forfeiture before annulment of forfeiture before forfeiture takes place.forfeiture takes place.

This is the absolute discretion of This is the absolute discretion of SA to refuse or allow the SA to refuse or allow the petition.petition.

If allowed it is subj to payment If allowed it is subj to payment been made by the petitioner (s. been made by the petitioner (s. 133(2) (a) & (b)133(2) (a) & (b)

s. 134s. 134

Appeal vs forfeiture must be md w/in Appeal vs forfeiture must be md w/in 3 mths from the date the on which it 3 mths from the date the on which it was communicated to him (s. 418)was communicated to him (s. 418)

The grds must be that the order is The grds must be that the order is contrary to this Actcontrary to this Act

The appeal will not affect any action The appeal will not affect any action to be taken vs any officer for to be taken vs any officer for wrongful act done or order to be wrongful act done or order to be done or omitted to be done in done or omitted to be done in relation to the forfeiture.relation to the forfeiture.

CaseCase

Pow Hing & Anor v Registrar of Pow Hing & Anor v Registrar of Titles Malaccaa [1981] 1 MLJ Titles Malaccaa [1981] 1 MLJ 155155

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