2) He also wants to know the nature of the notice in form 7B and its legal consequences and

what are the steps, if any, he should take in response to the notice to prevent the forfeiture of his
land.

Whether Saleem’s land can be forfeited since form 7B has been issued to him and what
are the steps he can take to prevent his land from being forfeited?

Law

Forfeiture can be defined as an action that will be taken by state authority against
registered proprietor for failure of non-payment of rent or breach of condition, the failure of
either this two will lead the land of the registered proprietor to be forfeited and reverted back to
the state land. This is pursuant to section 100 of National Land Code, the collector shall not during
the period specified in any notice under section 97 accept the tender by or on behalf of any
person or body of a lesser amount than the sum thereby demanded; and if by the end of that
period the whole of that sum has not been tendered to him, he shall thereupon by order declare
the land forfeit to the State Authority, and the provisions of Part Eight shall have effect with
respect thereto accordingly. Not only that, pursuant to section 127 (1) paragraph (a) of the
National Land Code, upon any breach arising of any condition to which any alienated land is for
the time being the land shall become liable to forfeiture to the State Authority.

Under section 5 of the National Land Code, condition is to be defined as not to be

included with restriction in interest. Restriction in Interest is defined under the same section as
"restriction in interest" means any limitation imposed by the State Authority on any of the
powers conferred on a proprietor by Part Nine, or on any of his powers of dealing under Division
IV, and any like limitation imposed under any previous land law. The definition of condition
under section 5 must be read together with section 103 of the National Land Code, there are two
types of condition. Pursuant to section 103 (1) (a), the first type of condition is condition
‘requiring continuous performance’: The proprietor is required to do or refrain from doing any
act during the entire period of the alienation. The second type of condition is pursuant to section
103 (1) (b), condition ‘subject to a fixed term’: The proprietor is required to do or refrain from
doing any act until a specified period. It is important to distinguish between these two kind of
type of condition when breach occurs. While section 104 of the National Land Code, every
condition or restriction in interest shall run with the land to which it relates, and shall bind the
proprietor thereof for the time being and every person or body having or claiming any interest in
the land, howsoever derived.

Conditions for agricultural land lies on section 121 (1) of the National Land Code for
express condition while section 115(1) for implied condition. Under section 121(1) of the
National Land Code, the express condition of agricultural land includes requiring cultivation,
prohibit cultivation, fix the dates in any year on or before any agricultural activity begins or is
completed and limit the maximum volume of the area of the land which may be occupied by
dwelling houses and other buildings. While implied condition under section 115 (1) includes no
building shall be erected other than those to be used for one or more purposes specified under
sub-section (4), that the area of the land shall be maintained in good condition and that the area
of the land shall be continuously cultivated. Breach of condition arises under section 125 of the
National Land Code and that breach requiring continuous performance shall arise so soon, and
continue so long as the condition is not complied with. In the case of Collector of Land Revenue,
Johor Bahru V South Malaysian Industries, the express condition endorsed on the title was for
the land to be used for light industries only. Thus, its use for storing industrial chemicals and
fertilizers was not a legitimate use permitted and amounted to a breach of condition.

No owner or lessor shall be entitled to enforce, by action or otherwise, the forfeiture of

any lease, sub-lease or tenancy for any breach unless and until he has served on the lease or
tenant a notice in writing by specifying the particular breach complained of, if the breach is
capable of being remedied, requiring the lessee or tenant to remedy it and lastly, in any case
other than non-payment of rent, requiring the lessee or tenant to pay compensation for the
breach.

The liability to forfeiture for breach of condition is pursuant to section 127 of the
National Land Code, in this section, it imposed fine under subsection (1A) as well as serve a
notice in Form 7E upon the proprietor to show cause why a fine should not be imposed in respect
of that breach. Pursuant to same section and subsection but under paragraph (b), it stated that
upon failure by the proprietor to show cause to the satisfaction of the Land Administrator, the
Land Administrator may make an order for the payment of a fine of not less than five hundred
ringgit, and in the case of a continuing breach, a further fine of not less than one hundred ringgit
for each day during which the breach continues. If the fine for the breach has been paid only
then, the action will not be taken under section 128and 129 of the National Land Code. However,
if the registered proprietor stills failed to remedy the said beach, the land administrator may take
action by sending a notice under Form 7E to notify the registered proprietor that he will be
taking action under section 128 or 129 of the National Land Code upon the expiry of a period of
six months from the date of service of the notice or at any time thereafter.

Second, the land administrator can also instruct the registered proprietor to remedy the
breach under section 128 of the National Land Code, the land administrator shall serve the
proprietor a notice in Form 7A specifying the action requiring the breach to be remedied of as
well as calling upon him to take such action to be remedied in within the specified time. Upon
the service of notice, under Section 128 (2), the Land Administrator shall endorse on the RDT a
note to the effect that the land is subject to action for breach of condition. If the notice is
complied with, the note endorsed shall be cancelled as provided in Section 128 (3)(a) and lastly,
pursuant to section 128 (3) paragraph (b), if the registered proprietor failed to complied with the
notice given then the Land Administrator may take action under the provisions of section 129 of
the National Land Code.

Pursuant to section 129 (1) of the National Land Code, The Land Administrator shall take
action under this section wherever any alienated land is liable under section 127 to forfeiture for
breach of condition and (a) he is of opinion that the taking of action under section 128 would not
be appropriate, or (b) the proprietor of the land has failed to comply with any notice served on
him under that section. Following under the same section which is subsection (2) where in either
of the circumstances aforesaid, the Land Administrator shall (a) cause a notice in Form 7B to be
served on the proprietor of the land, and (b) cause a copy of that notice, to which there shall be
appended the additional notice set out in the supplement to that Form, to be served on the like
persons and bodies as those on whom notices relating to rent are required to be served by
subsection.

The nature of form 7B is to notify the registered proprietor by calling upon him to made
enquiry against him by the Land Administrator per reason why his land shall not be forfeited as
of the failure to comply prior notice that was given to him under section 127 and 128 of the
National Land Code. Upon the date and time as well as the place given specified in any such of
the notice the Land Administrator shall hold an enquiry in accordance with the provisions of this
Act and after such enquiry had been done so, there are three possible outcomes pursuant to
section 129 (4) which are (a) If the breach has been remedied, the endorsement shall be
cancelled, (b): If the time to remedy the breach is insufficient, the Land Administrator will make
an order specifying the action to be taken and grant an extension of time and lastly c): The Land
Administrator shall take temporary possession of the land as may be directed by the State
Authority OR make an order declaring the land to be forfeited. If the registered proprietor stills
failed to remedy the breach that happened on his land, the Land Administrator may take action
pursuant to section 129 (5) (b) of the National Land Code, where it states if the order is not
complied with, the Land Administrator shall, on the expiry of the period specified therein, take
temporary possession of the land as he may be directed by the State Authority or in the absence
of such direction, make an order declaring the land forfeit to the State Authority.

Forfeiture of the land will be enforced once it has been gazetted in pursuant to section
130 of the National Land Code. The effects of the forfeiture of the land shall be as pursuant to
section 131 of the National Land Code which are land and buildings on the land revert to State
authority, free from all titles and interests, no compensation required, any land revenue due shall
be extinguished and State Authority may re-alienate land after 3 months or after appeal has been
determined by the High Court.

Therefore, to prevent the forfeiture of the land there shall be three possible alternatives
that can be taken by the registered proprietor. First is during the enquiry of showing the cause
under form 7B, the registered proprietor may take necessary action by telling his tenant that was
causing the breach to put a stop to the activities that invoke the breach of the condition. The
vacancy of the land shall immediately remedy the breach of the condition that has been occurring
on the agriculture land. Hence, during the enquiry with the Land Administrator, the registered
proprietor can tell the Land Administrator that the breach has been remedied and only subjected
to fine only and the forfeiture of his land shall be cancelled.

The second alternative is by applying to the State Authority for the annulment of the
forfeiture pursuant to section 133 (1) of the National Land Code. However subject to subsection
(2) of section 133, the state authority may in its absolute discretion refuse or allow any petition
under this section, and, if it allows the petition, may do so conditionally upon payment by the
petitioner- In our instant case, subjects to paragraph (b) of the same section which if the
forfeiture was for breach of any condition, of such amount as the State Authority may determine
in respect of the expenses occasioned by the forfeiture.

The last possible alternative to prevent the forfeiture of the land is the registered
proprietor may appeal in the court within 3 months of the forfeiture of the land subject to SS 132
(1) (a), S 134, section 418 of the National Land Code. However, the grounds of appeal that can
be brought up to the court are pursuant to section 134 (2) which stated no order of the Land
Administrator under section 100 or 129 shall be set aside by any court except upon the grounds
of its having been made contrary to the provisions of this Act, or of there having been a failure
on the part of the Land Administrator to comply with the requirements of any such provision;
and no such order shall be set aside by reason only of any irregularity in the form or service of
any notice under Chapter 2 of Part Six or, as the case may be, Chapter 5 of Part Seven unless, in
the opinion of the court, the irregularity was of a significant nature. It can be summarised that the
appeal can only be brought to the court on three grounds which are order made contrary to
National Land Code and land administrator failed to comply with the requirements of the
National Land Code as well as irregularity of significance nature.

Application

In applying to our certain case, Saleem is proprietor of a land and Ah Choy is the tenant
of the land that Saleem own. Ah Choy use the land for two purpose which is one is to build a rice
mill and the other was to use the land for repairing cars and machineries by opening a workshop.

Pursuant to section 115 (1), Saleem’s land cannot be used for other things except for
agricultural purposes only. Therefore, when Ah Chong use the workshop for repairing cars, it
does not comply with agricultural purposes of the land. Therefore, the act repairing cars has
become breach condition which disallows certain types of activities that has nothing to do with
the purpose or conditions of agriculture land under section 115 of the National Land Code. The
situation is similar in the case of CLR, Johor Bahru v South Malaysia Industries Bhd. However,
it must be noted that the opening of a workshop that was to repairs machinery for the use of
agriculture does not amount to breach of condition as it is aligned with the conditions that has
been set out in section 115 of the National Land Code.
 In applying section 125 of National Land Code, the breach falls under continuous
performance because as long as Ah Choy use the workshop for repairing vehicles on Saleem’s
land it is a continuous performance of breaching condition.

It must be noted that although the breach was done by Ah Choy, the restriction from
doing anything on the land that is not for original purpose shall binds both the registered
proprietor as well as every person that have interest over the land pursuant to section 104 of the
National Land Code.

In this situation, Saleem can also be clearly seen to have failed to remedy the breach
under section 127 and 128. This can be assumed as so because he did nothing to address or to put
a stop to Ah Chong’s activities of repairing cars. Not only that, Saleem is aware of the breach
and did nothing so as to the extent he also sent his car to be repaired at Ah Chong’s workshop.
Thus leading, the land administrator to issue form 7B under section 129 as the breach has
become so severe.

Therefore, it is reasonable for the Land Administrator to issued Form 7B to Saleem since
he failed to abide what was needed to be done under section 127 and 128 of the National Code.
Thus lead them to take action under section 129 of National Land Code. Therefore, since there is
issuance of form 7B, if Saleem failed to show cause and failed to give reasonable defence during
the enquiry. His land may be forfeited and reverted back to State Land.

However, he can prevent the forfeiture of his land by applying notice to show cause in
the Form 7B. The nature of the Form 7B is that, once it is served to Saleem, he is required to
show cause to the Land Administrator on why his land should not declared to be forfeiture
during the enquiry session. Therefore, Saleem can prevent the forfeiture of his land by ordering
Ah Choy to stop repairing other stuffs aside from machinery that he used for the purpose of the
agriculture land. By giving notice to Ah Choy, he had already taken steps to prevent the
forfeiture of the said land. However, if Ah Choy is adamant of not putting a stop to the illegal
activities, Saleem may calls upon the authorities in order to put a stop against the breach of
condition that his tenant done. Furthermore, once he is requiring to show up for the enquiry
under section 129 Form 7B, he may also clarify with the land administrator telling that he has
tried to remedy the breach. If the land administrator deemed his argument to be reasonable then
his land would not be forfeited.
 Aside from that, the second alternative is, Saleem can also ask for annulment of the
forfeiture pursuant to section 133 of the National Land Code. If the annulment was allowed by
the State Authority, then he must pay certain expenses that the State Authority deemed necessary
for the occasion of the forfeiture. In this case the fine will be subjected to section 133 (2)
paragraph (a) of the National Land Code.

The last alternatives, Saleem may take to prevent his land from being forfeited is by
appealing to the court on the grounds of appeals. However, he must have reasonable grounds of
reason to bring it to the court. For instance, order was made contrary to National Land Code or
land administrator failed to comply with the requirements of the National Land Code or
irregularity of significance nature.

However, the best way for Saleem to not let his land to be forfeited is to immediately
remedy the breach of condition, one way of immediately remedying it is by telling Ah Choy to
stop repairing cars or any other stuff that is unrelated to the purpose of the land that he did
tenancy on. Therefore, during the show cause under Form 7B, Saleem can clarify things to the
Land Administrator on why his land should not be forfeited as he already tells Ah Choy to vacate
the said land.

In conclusion, Saleem’s land may be forfeited under section 129 after the issuance of
form 7B by the Land Administrator, if the land was to be forfeited, he will lose the title of the
said land. He may prevent the forfeiture of his land by giving notice to Ah Choy to put a stop to
the illegal doings the land thus during the enquiry session under form 7B, he can show cause or
raise a defence that he has put a stop to the illegal activity.