United Malayan Banking Corporation Bhd.docx

United Malayan Banking Corporation Bhd. & Anor v Pemungut Hasil Tanah, Kota Tinggi Facts

In this case, the Johor State Authority in 1966 alienated approximately 20,680 acres of land for a 99-year term in consideration of a stipulated annual quit rent and other  conditions to the second appellant (proprietor). Considerable sums of money were expended in developing the land for the purpose of a sugar plantation. The land was also charged to United Malayan Banking Corporation Berhad(First appellant). In 1977, the quit rent payable was RM124K plus the education rate of  RM31,020. The two amounts fell due on 1 January 1977 and were not paid by 1 June 1977. On 2 June 1977, the Collector of Land Revenue served on the interested parties, issued a notice of demand for settlement of the arrears and the penalties, both to be paid within six months. However, this did not take place owing to misunderstanding between the appellants. On 7 September 1977, the Collector (Respondent) made an order declaring the land is forfeited forfeited to the State Authority. Authority. The appellants (UMBC and the proprietor) on 7th and 14th December 1977 instituted proceedings under Section 418 NLC at the High Court. Judgment was given in favour of the appellants in the High Court. However, the State Authority appealed to the then Federal Court which reversed the decision of the High Court. The appellant then appealed to the Privy Council. Issue:

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Whether the sum demanded in the notice dated 2 June 1977 was excessive and was therefore invalid. Whether the equitable rules of English law dealing with relief against forfeiture have any application under the National Land Code.

Held:

The Privy Council did not dwell on the issue of the sum demanded but went on to say that the English rules of equity relating to relief against forfeiture should not be applicable to proprietors of alienated land under the National Land Code. It was held that English land law concerning the relief against forfeiture is inapplicable in Malaysia. Relief against forfeiture means that order for forfeiture is cancelled and it was  provided by Malaysian National Land Code.

Lord Keith of Kinkel: “the National Land Code is complete and comprehensive code governing land tenure in Malaysia and there is no room for the importation of any rule of  English Law.”