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2022 MarsdenLR 2437
HIGH COURT SABAH & SARAWAK MIRI
HADIE @ SUBOH SALLEH & ORS – Appellant
Versus
MUTUAL ETHIC SENDIRIAN BERHAD & ORS – Respondent
[Suit No: MYY-22NCvC-20/11-2018 (HC)]
Plaintiffs failed to establish Native Customary Rights (NCR) or legitimate expectation for lease renewal, leading to dismissal of claims.
Headnote:(A) Sarawak Land Code (SLC) 1958 – Sections 2, 5, 18, 20, 28, & 132 – Public Authorities Protection Act 1948 – Section 2 – Native Customary Rights (NCR) – The Plaintiffs claim NCR over expired leases were dismissed as unsubstantiated; failure to prove legitimate expectation for renewal, NCR over disputed areas and bankruptcy impediments were also addressed. (Paras 11, 30, 40-56, 99, 101-106)
(B) The legal capacity of bankrupt Plaintiffs to maintain action without sanction under Insolvency Act was affirmed, being mandatory. (Paras 82-91)
Facts of the case: Plaintiffs claim expired State Land leases based on alleged NCR; Defendants issued leases to third parties, prompting the Plaintiffs' litigation, despite previous unsuccessful claims from 2010 and 2014.
Findings of Court: No basis for NCR claims; court affirmed the indefeasibility of the 1st Defendant’s title. Plaintiffs' actions were time-barred and dismissed with costs. (Paras 106)
Issues: Whether the Plaintiffs had legitimate expectation for lease renewal, established NCR, legal capacity as bankrupts and statutory bar under PAPA. (Paras 10, 11)
Ratio Decidendi: The Court found no entitlement to automatic lease renewal, emphasized NFC principles and legitimacy of Defendants' actions resulting in dismissal of claims with costs awarded. (Paras 38, 46, 74, 94)
Result: Claims dismissed with costs of RM20,000.00 in total to the Defendants.
JUDGMENT
Introduction
[1] In this action, the Plaintiffs claim are against the 1st, 2nd and 3rd Defendants (hereinafter collectively referred to as "the Defendants" unless the context otherwise requires) for their alleged rights over expired leases of State Lands ie Lots 276, 277, 279, 280, 281, and 282 of Block 17 Kuala Baram Land District (hereinafter referred as "Plaintiffs' Leased Lands") based on the grounds of legitimate expectation for renewal and their alleged Native Customary Rights ("hereinafter referred to as "NCR").
[2] The Plaintiffs are Kedayans or Malays by race and are natives of Sarawak. The Plaintiffs bring this action, on their own behalves and on behalf of their family members residing in Kampung Haji Wahed, Miri. The Plaintiffs claims that they have at all material times acquired NCR over the land as set out in the map marked as " Y" attached to the Statement of Claim, which includes Lots 276, 277, 279, 280, 281, and 282 These lots have since been renamed and/or converted into Lots 2540, 2541 and 2542 of Block 17 Kuala Baram Land District (hereinafter referred to as "the disputed areas").
[3] In the Statement of Claim, the Plaintiffs have pleaded as follows:
(i) Plaintiffs have pleaded to have a legitimate expectation that their lease of five years was renewed accordingly upon expiry by virtue of the continuous communication and support given by the relevant authorities, including the 2nd and 3rd Defendants;
(ii) In the alternative, the Plaintiffs are claiming their NCR to the disputed lands by virtue of the lands being part of a wider NCR area surrounding Kampung Hj Wahed and Kampung Pujut Padang Kerbau;
(iii) The issuance of the Provisional Leases for Lot 2176, 2177 and 2178 of Kuala Baram Land District by the 2nd and 3rd Defendants to the 1st Defendant is in breach of the Plaintiffs' alleged NCR;
(iv) Without any prior and/or proper extinguishment of the Plaintiffs' NCR over the disputed areas, the issuance of the Provisional Leases of State Land to the 1st Defendant was wrongful and/or illegal;
(v) Without any prior and/or proper extinguishment of the Plaintiffs' NCR over the disputed areas, the issuance of the Provisional Leases of State Land to the 1st Defendant is defeasible, thus, ought to be null, void and of no effect;
(vi) The Plaintiffs' present action is not subjected to any statutory limitation considering the fact that the Plaintiffs ' present action involved issues pertaining to breach of constitutional rights and a case where parties are seeking for declaratory orders; and
(vii) The Plaintiffs were the original title holders and/or have acquired NCR over the disputed areas.
[4] The Plaintiffs also averred and alleged that without their knowledge and or consent, the 2nd and 3rd Defendants through the office of the 2nd Defendant issued a Provisional Lease over the disputed areas to the 1st Defendant.
[5] The Plaintiffs are therefore seeking the following Declaratory reliefs and Orders:
(i) A declaration that the Plaintiffs are the rightful owners of the said Lots Number 276, 277, 279, 280, 281, and 282 (and also Lots 274 and 275 which were not affected) of Block 17 Kuala Baram Land District ["Plaintiffs' Full Titles"] as defined in the Statement of Claim, and/or have otherwise acquired native customary rights and/or are the customary owners of the Plaintiffs' said Lands;
(ii) A declaration that the 1st, 2nd and 3rd Defendants, whether by themselves or their own employees, servants or agents or assigns and/or contractors, are precluded from impairing, abridging or interfering with the said Plaintiffs' Full Titles;
(iii) A declaration that the Plaintiffs' said rights and title to or ownership of the said Plaintiffs' Full Titles for the reasons as set out in the Statement of Claim had been impaired or abridged or wrongfully interfered with by the 1st, 2nd and 3rd Defendants;
(iv) A declaration that the Plaintiffs have legitimate expectation on the 2nd Defendant, having relied on the latter's r
