The imposition of leasehold status on land originally held in freehold was ruled ultra vires, infringing upon property rights, necessitating reversion to freehold status.

Introduction

[1] This was an application ("this Application") seeking, inter alia, for a declaration that the 99-year leasehold condition imposed by the Respondent on the continuation title pursuant to its subdivision and re-alienation, which originally bore a freehold status, was invalid as ultra vires; and an order for the Respondent to cancel the "leasehold" status on the continuation title pursuant to its subdivision and re-alienation, and to issue a new continuation title with "freehold" status, registered in the Applicant's name.

The Factual Background

[2] Lots 153 and 4026, originally owned by Edinburgh Rubber Estates Limited, were two pieces of land that enjoyed freehold status. In January 1973, Edinburgh Rubber Estates Limited sold Lots 153 and 4026 to Sharikat Permodalan Kebangsaan Berhad ("SPKB").

[3] SPKB then surrendered Lots 153 and 4026 to the State Authority pursuant to s 197 of the National Land Code ("National Land Code"), and then for subdivision and re-alienation pursuant to s 76 of the National Land Code The provisions read:

Section 197 - Applications for approval of surrender of whole.

(1) Any application for approval by a proprietor wishing to surrender the whole of the land comprised in his title shall be made in writing to the Land Administrator in Form 12A, and shall be accompanied by:

(a) such fee as may be prescribed;

(b) all such written consents to the making thereof as are required under paragraph (c) of sub-section (1) of s 196; and

(c) unless the proprietor alleges that it is for any reason incapable of production, the issue document of title to the land.

(2) Where the proprietor is unable to produce the issue document of title because it is in the hands of any person or body as chargee or lien-holder, the application shall be accompanied instead by a copy of a request by the proprietor, served on that person or body under sub-section (2) of s 244 or, as the case may be, sub-section (4) of s 281, for the production of the document at the Land Office within fourteen days of the date thereof.

(3) Upon receipt of the application, the Land Administrator shall endorse, or cause to be endorsed, a note thereof on the register document of title to the land.

(4) Where the application relates to estate land:

(a) the Land Administrator shall refer it to the Estate Land Board established under s 214A for its recommendations; and

(b) the Secretary of the Estate Land Board shall convey its recommendations as expeditiously as possible to the Land Administrator.

Section 76 - Meaning of alienation

The alienation of State land under this Act shall consist of its disposal by the State Authority:

(a) for a term not exceeding ninety-nine years;

(aa) in perpetuity:

(i) where the Federal Government requires the State Authority to cause a grant in perpetuity to be made to the Federal Government or to a public authority or where the Federal Government and the Government of the state agree to make a grant in perpetuity to the Federal Government;

(ii) where the State Authority is satisfied that the land is to be used for a public purpose; or

(iii) where the State Authority is satisfied that there are special circumstances which render it appropriate to do so;

(b) in consideration of the payment of an annual rent;

(c) in consideration, unless the State Authority thinks fit to exempt therefrom in any particular case, of the payment of a premium;

(d) subject, unless the State Authority otherwise directs pursuant to sub-section (5) of s 52,