LAND 2 SEM I 0607


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LAND 2 SEM I 0607

  1. 1. END-OF-SEMESTER EXAMINATION SEMESTER I, 2006/2007 SESSION AHMAD IBRAHIM KULLIYYAH OF LAWS Programme : Bachelor of Laws Level of : Third Study 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. REFERENCES ALLOWED 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. APPROVED BY
  2. 2. 2 QUESTION 1 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? (15 marks) QUESTION 2 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.
  3. 3. 3 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. (3 marks) 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. (5 marks) c) He would like to know whether the Indonesians are also entitled for the compensation since that would affect their rental period. (3 marks) 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. (4 marks) Support your opinion with reference to decided cases.
  4. 4. 4 QUESTION 3 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. (15 marks)
  5. 5. 5 QUESTION 4 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. (5 marks) 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 caveat.
  6. 6. 6 Advise the parties as to their rights. Support your answer with the relevant statutory provisions and decided case law. (10 marks) QUESTION 5 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. (15 marks)
  7. 7. 7 QUESTION 6 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. (15 marks)