The court affirmed that the alienation of State Land remains valid only upon registration, allowing the State Authority to revoke prior approvals regardless of prior payments.

[1] The issue in this appeal concerns the power of the State Authority to revoke its earlier approval of alienation of State Land under the National Land Code ("the Code"). It is the appellant's contention that the State Authority has no power to revoke its earlier approval of alienation of State Land under the Code. So, when the State Authority revoked its earlier approval of alienation of State Land to the appellant it had in law exceeded its powers under the Code, acted in bad faith and disregarded of the rules of natural justice and the appellant's legitimate expectation.

[2] But before examining the powers of the State Authority in respect of revocation of alienation of State Land under the Code, it is necessary to put the facts in proper perspective. The State Authority of Terengganu is not itself a party to this proceeding. The second respondent is the proper party to this proceeding by virtue of s 16(2) of the Code. The first respondent, namely the Land Administrator of the District of Dungun, is made a party as the land, which is the subject matter of the dispute, is situated in the District of Dungun, Terengganu.

The Facts

[3] On 26 April 2000 the appellant applied to then Chief Minister of Terengganu for alienation of 10,000 acres of reserved forest land in the Mukim of Besul and Mukim of Hulu Paka, in the District of Dungun for the purpose of cultivation of oil palm and cattle rearing.

[4] By a letter dated 27 November 2000, the Deputy State Secretary informed the appellant that the State Government had agreed to approve its application in principle subject to terms and conditions of alienation which may be imposed by the second respondent and to the revocation of forest reserved land by the Director of State Forestry. The appellant was accordingly advised to liaise with the Department of Lands and Mines and the Department of Forestry, of Terengganu.

[5] This was followed by a letter dated 11 December 2000 from one Mohd Yasim bin Awang, acting on behalf of the second respondent, informing the appellant that the State Authority had approved its application in principle and advised the appellant to put in a formal application to Pentadbir Tanah Daerah Dungun. The letter reads:

11 December 2000

Pengerusi Eksekutif

North East Plantations Sdn Bhd

No. 5, Jalan 65C, Off Jalan Pahang Barat

Pekeliling Business Centre

53000 Kuala Lumpur

Tuan,

Permohonan Tanah Kerajaan Untuk Pembangunan Ladang Kelapa Sawit Dan Ternakan Lembu Di Negeri Terengganu Seluas 10,000 Ekar Di Kawasan Hutan Simpan Sungai Paka, Mukim Besol Dan Hulu Paka, Dungun

Dengan hormatnya saya diarah merujuk perkara di atas, sukacita memaklumkan permohonan tuan pada dasarnya telah diluluskan oleh Pihakberkuasa Negeri.

2. Sehubungan dengan itu tuan hendaklah merujuk kelulusan dasar ini dan mengangkat permohonan rasmi kepada Pentadbir Tanah Dungun untuk tindakannya. Pejabat ini akan mengambil tindakan lanjut selepas permohonan yang telah disempurnakan diperolehi daripada Pentadbir Tanah berkenaan.

Sekian, terima kasih.

"BERKHIDMAT UNTUK NEGARA"

Saya yang menurut perintah,

t.t

(Mohd Yasim bin Awang)

b.p Pengarah Tanah Dan Galian Terengganu.

[6] The application for alienation of the said lands was subsequently approved by the first respondent. By State Gazette No 67 dated 14 February 2002, the State Authority also revoked the said forest reserved land with retrospective effect from 15 November 2000.

[7] On 21 May 2003, part of the land approved for alienation, consisting of three lots were issued with qualified titles, namely