SEMESTER I, 2006/2007 SESSION
AHMAD IBRAHIM KULLIYYAH OF LAWS
Programme : Bachelor of Laws Level of : Third
Reading Time : 2.30 p.m. – 2.45 p.m. Date : 11.11.2006
Duration : ( 15 minutes )
Answering Time : 2.45 p.m. – 5.45 p.m. Section(s) : All Sections
Duration ( 3 hours )
Course Title : Land Law II Course Code : LAW 3111
This Question Paper Consists of 7 Printed Pages With 6 Questions.
INSTRUCTIONS TO CANDIDATES
DO NOT OPEN UNTIL YOU ARE ASKED TO DO SO.
Answer FOUR (4) Questions Only.
National Land Code 1965
Compilation of Statutes on Land Law (Law Centre Series of Statutes)
Any form of cheating or attempt to cheat is a serious
offence which may lead to dismissal
Statutes should be free from any form of annotation.
With reference to decided cases give an account of jual janji customary security
transaction as it operates under Malaysian land law. Do you think that this custom should
be maintained or should it be abolished and why?
Latif owns a plot of land at Jalan Gombak, Setapak Kuala Lumpur. In 2000, the land was
valued at RM200,000. At present, there is a three-storey building on the land and two
units of shop lots. One unit has been rented out to 2 Indonesians for 3 years and another
unit to Amin. Amin later sub let the front part of the shop to a Celcom vendor. Latif
recently issued a three months notice to the Indonesians to vacate the land for failure to
pay the last two months rental on time. Opposite to his land, a new private college was
opened recently with a population of nearly 5000 students. Envisaging a good business
opportunity he now intends to open a stationery shop to cater for the students’ needs.
However, due to the increase in the population density, the traffic in the area started to
worsen day by day. To solve the problem, the government decided to build a highway
that would pass through Latif’s land. The government has now made it clear that it
intends to acquire Latif’s land for building of the road.
Being very unhappy about these developments Latif is now seeking your legal opinion on
the following points:
a) Whether he could object the acquisition on the ground that as the owner of the land
he has the exclusive right to enjoy his land.
b) He is not satisfied with the suggested compensation since that did not take into
account his future plans to open a stationery shop which would generate a monthly
income of not less than RM15,000. He also wants to know how the market value
would be determined under the circumstances.
c) He would like to know whether the Indonesians are also entitled for the
compensation since that would affect their rental period.
d) Whether he could object to the government’s intention to take the whole of his land
although only part of the land would actually be affected.
Support your opinion with reference to decided cases.
Mr. Syam, a Senior Banking Manager of Trent Bank Berhad, was approached by Messrs
Malik & Co. to approve an overdraft facility of RM 500,000.00. Messrs Malik & Co.
agreed to provide as security all the parcels of alienated land held under P.T.No.5600, Lot
No.5001, District of Kuala Alur together with the factory on the land (“property”). The
market value of the property is estimated to be Ringgit Malaysia Ten Million.
Messrs Malik & Co., proposed to the Bank to release the loan facility upon them
depositing their original issue document of title rather than until after the registration of
the legal charge in the relevant land office. Mr. Sharma was a little concerned on
releasing the loan relying only on the security of the deposit of the original issue
document of title. He expressed his concern to you as his panel solicitor and requests
your opinion with regard to the type of security the Bank can rely upon in this situation.
Write a legal opinion for Mr. Sharma advising him on the types of security transactions
recognized by the National Land Code 1965 and the differences between the security
transactions currently operating under the Malaysian land law. Also mention in your
opinion what he should do in order to create a valid security transaction under the
National Land Code 1965.
Support your opinion with the relevant statutory provisions and decided case law.
a. Explain the nature and scope of caveats as provided in the National Land Code
1965 (Act 165). Support your answer with the relevant statutory provisions and
decided case law.
b. Mrs. Surinam wanted to initiate divorce proceedings in the Syariah Court in Kuala
Pusu against her husband En. Sabtu on grounds of willful neglect and desertion. She
entered a Private Caveat on the property belonging to her husband Mr.Sabtu that
was obtained during the subsistence of their marriage. The property was registered
in En. Sabtu’s name due to her love and affection towards him. The property was
charged to Kuala Pusu Bank (“Bank”) to secure a loan of RM300,000.00.
En. Sabtu applied to remove the Private Caveat on the 10th
May 2000 by writing to
the Registrar of the Kuala Pusu Land Office. The Registrar in compliance with the
statutory requirement served a notice on Pn. Surinam. However Pn. Surinam
managed to obtain a Court order for an extension of the Private Caveat.
The Bank upon receipt of the notification applied to the Registrar to remove the
caveat. However, the Bank’s application was rejected by the Registrar. The Bank
alleged that, as a registered chargee, they too have a right to seek removal of the
Advise the parties as to their rights. Support your answer with the relevant statutory
provisions and decided case law.
After paying 10% of the purchase price Amin proceeded to the land office to enter a
private caveat over the land owned by Kumar. At the land office he was informed that
Kenanga Finance had already entered a lien holders’ caveat on the land. On the other
hand, Kumar also failed to pay a personal debt owed to Kanni who now wishes to restrain
Kumar from disposing his land before Kanni gets his money back. In fact, Kanni
obtained a judgement against Kumar and proceeded to the land office to enter a
Prohibitory Order. Before doing so, Kanni conducted a search and found out that there
were already a private caveat and a lien-holder’s caveat entered on the same piece of
land. He became confused like the rest of the other parties. They now approach you
seeking your legal advice as to the most appropriate line of action to be taken to secure
their respective interests in the land.
Advise all parties.
Critically examine the rationale of introducing the concept of the Malay Reserved Land
into Malaya in the early 20th
century. To what extent is the law as enshrined in the Malay
Reserved Land Enactment 1933 is still relevant in regulating dealings by the Malays with
their land in the light of the changing needs of the modern Malay society? Support your
answer with statutory provisions and decided cases.