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1. Please divide into groups to answer these questions2. This platform is aimed for discussion, question and answers, students can give opinion as well. 3. Be creative, you can insert any information, case law, photos etc to support and illustrate your answersAll the best !

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1. Please divide into groups to answer these questions2. This platform is aimed for discussion, question and answers, students can give opinion as well. 3. Be creative, you can insert any information, case law, photos etc to support and illustrate your answersAll the best !

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A. Categories of land use and classification of land

The categories of land use and classification of land are two different things. Generally, the categories of land use indicate the type of usage of the land is subjected to, whereas the classification of land refers to the location of the land.

There are provisions provided under the National Land Code in order to differentiate between both classification and categories of land. As for categories of land use, it is provided under Section 52 (1) until Section 56 of the National Land Code. According to Section 52 (1), there are three categories of land use known respectively as agriculture, building, and industry. There are also conditions affecting these three categories of land use such as express conditions and implied conditions. Under express condition, there are provisions provided under Section 120 until Section 122. On the other hand, for implied conditions, the provisions provided are from Section 114 until Section 117 of the NLC.

The land in Malaysia, on the other hand, is classified under Section 51 of the National Land Code 1965. Section 51 (1) provides that the land is classified into two which are the land above the shoreline and the foreshore and sea-bed. Section 51 (2) then further states the land above the shoreline is classified into town, village and country land.

Town land and village land are the land in any area of the State which is declared in accordance with Section 11to be respectively a town and a village or by virtue of Section 442 deemed to be a town and a village while country land is all land above the shoreline other than town land and village land.

B. Conditions and restrictions in interest.

The differences between the conditions and the restriction in interest are which the imposition by the State Authority of obligations for conditions is relating to the use of land such as agricultural, building and industrial purposes while for restriction is relating to a limitation on the powers conferred to a proprietor to deal with the land alienated to him or her.

In Section 120 (1) (a) of National Land Code, it was stated that the State Authority may alienate land subject to express conditions determined at the time when the land is approved for alienation. There are two types of conditions which are express conditions and implied conditions. Express conditions are conditions that are endorsed on the document of title of the land and relate to the use of land such as express conditions in respect of land held under agriculture is “This land may only be used to plant rubber trees” or for land held under building is “This land is to be used as a residence only” or for land held under category of industrial is “This land is to be used for the purpose of a petrol station”.

Meanwhile, in Section 114 to Section 118 of NLC stated that implied conditions which are specified in the National Land Code itself in relation to the type of category of land use that the land is subjected to and they are not endorsed on the document of title. Accordingly, the effect of non-compliance with the conditions, the land will be liable to forfeiture to the State Authority as stated in Section 127 (1)(a) of NLC.

The term ‘restriction in interest’ is defined in Section 5 of the NLC as any limitation imposed by the State Authority towards a proprietor by Part Nine or on any of his powers of dealing. It relates with the rights of the proprietor to deal with his land but there is limitation or restriction which imposed by the State Authority to the proprietor.

For instance, the common restrictions in interest imposed by the State Authority is read as follows, “This land may not be transferred, charged or leased without the written consent from the State Authority”. Thus, it shows that the consent from the state authority is important in respect of applying for subdivision, partition or amalgamation. If the consent is not being approved, the proprietor can appeal for the consent.
Besides, in Section 105 of the NLC regarding every restriction in interest, it shall continue in force until the reversion of the State Authority of the land to which it relates. This can be seen in the case of Dr. Ti Teow Seow & Ors v Pendaftar Geran-geran Tanah Negeri Selangor where it stated that the land which subject to the restriction in interest cannot be transferred or leased for a period of 15 years without the consent of the Ruler in council. This indicates that the restriction in interest could not have commenced before the date of registration because the land remained State Land.
To sum up, in order to alienate the land, the state authority may imposed the conditions and restriction in interest towards the proprietor.

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Section 79(2) of the National Land Code 1965 provides matters that the State Authority will determine upon approving alienation, which will include category of land use and condition.

Explain the differences between the following and give examples to   illustrate:

a.     Categories of land use and classification of land;

b.     Conditions and restrictions in interest.

(12 marks)

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Zikri was alienated a 20-acre plots of agricultural land in Taiping, Perak by the State Authority of Perak around five years ago. On his Issue Document of Title, there are two express conditions which states that the land can only be used to cultivate palm oil trees and that the cultivation must be done within two years of the land being alienated to Zikri. Despite it being more than five years since the land was alienated to Zikri, Zikri has left the land idle. Zikri wishes to know if the Land Administrator can take any action against him and the land for leaving the land idle all this while.(10 marks)

The first issue is whether Zikri has breached the expressed conditions stipulated in his Document of Title due to his failure to cultivate palm oil trees on the agricultural land within two years and eventually left the land idle, according to Section 121(1)(a) and (c), Section 125(2) and Section 126 of the National Land Code (NLC) 1965.

Section 121(1)(a) of the NLC states that where in pursuance of Section 52, for an agricultural land, the State Authority may exercise of its power under Section 120 of the NLC to impose such conditions as it may think suitable in regards to a cultivation or crop. Besides that, subsection (c) provides that the State Authority may fix the dates in any year on or before which any agricultural activity must be completed.

Next, Section 125(2)(a) of the NLC mentioned that subject to a fixed term, a breach of condition shall arise in the case of a condition requiring to commit any act within any time is not fulfilled within the specified expiry date. Accordingly, in Section 126 of NLC, where any condition consists of two or more separate obligation or liabilities, a failure to fulfill any of those obligations or liabilities shall constitute a breach of the condition.

In addition, Section 115(1)(d) of the NLC provides that the whole area of the land alienated shall be maintained and cultivated according to the rules of good husbandry and later, subsection (e) states that the said area shall be continuously cultivated.

Pertaining to this issue, the Land Administrator has imposed two expressed conditions to Zikri upon the alienated land and also provided such fixed date to complete the said cultivation which is two years. However, Zikri has failed to fulfil the conditions as it has been more than five years since the land was alienated to him in which he exceeds the period of two years and he even left the land idle.

Therefore, Zikri has breached the expressed conditions stipulated in his Document of Title due to his failure to cultivate palm oil trees on the agricultural land within two years and eventually left the land idle, according to Section 126 of the NLC 1965.

The second issue is whether the State Authority is entitled to reverse the land that has been alienated to Zikri since Zikri has left the land idle without cultivating it within the fixed two years according to Section 41 of NLC and Section 46(1)(b).

According to Section 41 of the NLC, the State Authority have all the rights to reverse the land and other similar rights conferred by section 46. Meanwhile, Section 46(1)(b) provides that State Authority has the power to reverse the land upon publication in the Gazette of a notice under Section 130 when a notice published on the making of an order of forfeiture by the Land Administrator on the grounds of non-payment of rent or breach of condition.

In the case of Tan Ah Boon v State of Johor, the Collector of Land Revenue which is the State Authority had signified his approval to the alienation of 110 acres of State land to the appellant on payment of specified sums as and by way of premium as well as rent, and on certain other terms. The premium and the first year's rent was deposited as stipulated, but no grant had actually been executed or registered. The appellant paid the rent for 6 years but did not pay rent thereafter. The Collector then proceeded to attach and sell the land, and on a suit filed by the purchaser, The Collector repossess the land.

In regards to this issue, Zikri doesn’t fulfil the required terms stipulated in the Document of Title where it then gives the right for the State Authority to claim the said land. Zikri also has been given time to cultivate the land within two years but he failed to exercise it even after five years since the land was alienated to him.

To conclude, the State Authority is entitled to reverse the land that has been alienated to Zikri since Zikri has left the land idle without cultivating it within the fixed two years according to Section 41 of NLC and Section 46(1)(b). Thus, Zikri may lose the right on the alienated land because of his abandonment to cultivate the palm oil trees.

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SKS Bhd. is a registered proprietor of an industrial land in Seri Kembangan, Selangor. The land was held under a 60 years lease (qualified title). There are two express conditions on the title. First, this land is to be used solely for erection of a factory and second, to be used for light industries. SKS Bhd. rented out the land to a urea company that used a portion of the land to store industrial chemicals and fertilisers. Later, the Land Administrator found out that and deemed such use of land as a breach of the conditions and issued a notice requiring SKS Bhd. to remedy the breach within one month. SKS Bhd. disagreed with the notice of remedy as there is no specific prohibition to use the land as a store. SKS Bhd. consults you for advice.(10 marks)

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Pak Samad was alienated with a piece of agricultural land in the Mukim of Gombak, Selangor. He was issued with a land title which states “Hakmilik Sementara (H.S.M) 1046, Mukim Gombak”. To his surprise, it was stated that he was permitted to use only six metres of the underground land. He was suspicious with the words “Hakmilik Sementara” and would like to know whether the land really belongs to him. He was also in doubt whether the State Authority is permitted to impose such restrictions upon landowners since he understood that whosoever owns the land, he owns it up to the limitless sky and down to the centre of the earth.Advise Pak Samad.(17 marks)

1) The issue is whether the title of Hak Milik Sementara means that Pak Samad owns the land fully or temporarily.

Under Section 77 of NLC 1965,

The State Authority have the power to alienate any State land.
There are two types of land that which is Final title and Qualified title.

The title of Hak Milik Sementara is a title of land with provisional meaning for the boundary of the land and the area which has not yet been officially surveyed for the area and boundary of that land. The explanation for the Hak Milik Sementara title is to allow the land to be disposed of before measuring and dividing the land. The title, division and amalgamation of this land type can not be subdivided. This title also enables the alienated owner to move, mortgage or lease before measuring and leasing the land.

Applying this section to this case, Pak Samad as given his land under qualified title. Therefore, Pak Samad's land cannot be divided, amalgamated. However, Pak Samad's land title can be used for mortage and be leased.

2) Whether the State authority have the power to impose limitation of use of land to Pak Samad.

There are 2 types of limitations that are Express Conditions (divided into 2) and Restriction in Interest.  Express Conditions  are written on the IDT to the land and relate to the use of the land. Implied Conditions are implied on the land based on the category of the land like agricultural. (Sec 121(1) of NLC or building (Sec 122(d) with specific purpose of use.  Meanwhile, Restriction in Interest is the limitation on the proprietor to subdivision, amalgamation, or partition of the land.

Section 120 NLC provides that State authority may alienate land subject to express conditions and/or restriction in interest as it may think fit.  Section 127 of NLC further states that upon a breach of the conditions, the land shall subject to forfeiture.  Che Minah bt Rameli v Pentadbir Tanah Daerah Besut & Anor : The land was in agricultural category in the register but was buil several buildings and surau. Then, the land office issued a notice of breach of implied conditions. The plaintiff applied for change of category but was later rejected. As the Plaintiff was ordered to remedy the breach within 15 days, they sought for declaration that the order did not comply with section 1294(b) for failing to specify the remedy. Thus the plaintiff won the case.

Based on the law and cases, Pak Samad’s registration of qualified title Is bound to limitations stated by the State Authority. In this situation, Pak Samad can only enjoy 6 metres deep underground of the alieanated land. It was stated in the register thus making it an implied condition in the alienation of land to Pak Samad.

Therefore, the State Authority absolutely has the power to impose such limitation to the use of the land.

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Chong has failed to pay the quit rent for his land for the past five years. He has recently received a notice of demand in Form 6A from the Land Administrator to pay the arrears of quit rent. Advise Chong on the steps that must be taken by the Land Administrator for the forfeiture proceedings under the National Land Code [Act 56].
(10 marks)