FORFEITURE

What is forfeiture?

It is a power of the State Authority to take back alienated land from the registered proprietor due to either non-payment of rent or breach of

conditions.

Two grounds under which land may be forfeited

Non-payment of rent – Section 100 Breach of condition – Section 127 (1)

Non-payment of rentSee SS 93, 94, 94(2)Procedure, see SS 97-100

S 93. Rent to be a debt due to State Authority

S 94 (1) When rent due: the beginning of the calendar year.

S 94 (2) when in arrears: the first day of June in that year.

Procedure for fortfeiture for non-payment of rent SS 97-100

1. LA serves notice of demand in Form 6A.

2. LA endorses a note of service pof Form 6A on the RDT.

3. LA serves a copy of Form 6A on persons and bodies having interest in land.

4. If sum demanded is not paid, order for forfeiture is made under section 100.

5. Notification of forfeiture in Form 8A is published in the Gazette.

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

Endorsement of the note of service of the notice on the RDT is a mandatory requirement.

Failure to do so renders the forfeiture invalid.

Breach of conditions

Land can be forfeited for breach of either an express

or implied condition.

Nature of conditions S 103:

Conditions requiring continuous performance E.g. that no building shall be erected on the

land other than a building or buildings to be used for one or more of the purposes specified or referred to in subsection (4) – S 115(1)(a)

Conditions subject to a fixed term E.g. that a bona fide commencement of

cultivation of the land shall be made within twelve months of the relevant date – S 115 (b)

When does a breach of condition arise? S 125

125. When a breach of condition arises. (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;

(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.

Effect of breach of condition Liable to forfeiture – Section 127

127. Liability to forfeiture for breach of condition. (1) Upon any breach arising of any condition to which any

alienated land is for the time being subject-

(a) the land shall become liable to forfeiture to the State Authority, and

(b) except in a case where a fine is imposed under subsection (1A), or where action for the purpose of causing the breach to be remedied is first required to be taken under section 128, the Land Administrator shall proceed with the enforcement of the forfeiture in accordance with the provisions of section 129

LA may:1. Impose fine – S 127(1A)

Require RP to show cause why a fine should not be imposed

2. Instruct RP to remedy breach – S 128Serve F 7A specifying the action required to remedy breachEndorse on RCT the land is subject to action for breach of condition.Case: Che Minah Remeli v LA of Besut [1992]

3. Enforce forfeiture – S 129Issue notice in F 7B. Copies are served to persons under S 98(1).Hold an enquiry as to why the land should not be forfeited.Takes effect upon notification in the Gazette – S 130

Effects of forfeiture – Section 131

Land and any buildings on the land revert to State Authority

Free from all titles and interests No compensation required Any land revenue due shall be extinguished SA may realienate land after 3 months or

after appeal has been determined by the High Court.

(See Pemungut Hasil Tanah Kota Tinggi v UMBC [1981] 2 MLJ 264)

Right of Annulment

Can a forfeiture be annulled?

S 133 Discretion of SA

Right of AppealS 134

Can the RP appeal against forfeiture?

Yes. See SS 132(1)(a), S 134, S 418.

Appeal to the court within 3 months

Grounds of appeal – S 134(2) Order made contrary to NLC LA failed to comply with requirements of NLC Irregularity of a significant nature (See Pow Hing & Anor)