Linton Albert JC:

The 2nd defendant had on 22 August 1997 offered to alienate land to the plaintiff. The land offered was at Sungai Bangau-Bangau, Beluran comprising 503 acres more or less (the said land) under Land Application PT 92082134. The plaintiff accepted the offer and duly complied with the condition of the offer by paying RM125,750 representing 50% of the premium payable. The 2nd defendant did not proceed to alienate the said land to the plaintiff because the 1st defendant had, prior to the offer to alienate the said land to the plaintiff, issued the necessary papers called RSP to another group of 62 rival land applicants to survey the said land and upon the refusal of the 1st defendant to accede to the plaintiff's demand to cancel the RSP issued to the 62 applicants, the plaintiff commenced proceedings against the 1st and 2nd defendants for breach of the agreement to alienate the said land.

Subsequently, an amicable settlement appeared to have been reached when by a letter dated 9 November 2002 (the said letter) the 1st defendant, on behalf of the Government of the State of Sabah offered to amend the offer under PT 92082134 by replacing the said land and substituting it with land also at Sg Bangau-Bangau but in the District of Labuk/Sugut (the replacement land). The offer of amendment reflected in the said letter was promptly accepted by the plaintiff on 11 November 2002. Indeed, it was the plaintiff who initiated the process to bring about the amicable settlement and went through the whole rigmarole of identifying the replacement land which culminated in the issuance of the said letter, the importance of which to the determination of the present case, merits its reproduction:

Bil Tuan Tarikh: 09 November, 2002

Bil Kami: LS.801.13366(vol.2)/10(aja)

Evergreen Frontier (M) Sdn Bhd

PPO.Box 1374

Sandakan.

OFFER OF AMENDMENT TO THE ACCEPTED OFFER LS.801.1.3366/107 DATED 22 AUGUSST, 1997 - PT92082134 AT SG. BANGAU-BANGAU, DAERAH LABUK/SUGUT

On behalf of the Government of the State of Sabah, I hereby offer to amend the accepted offer via LS.801.1.3366/107 dated 22 August, 1997:

- by the deletion of the sketch numbered LS.801.1.3366/106;

- and substitution of the amended sketch numbered LS.801.1.3366(vol.2)/10A, shown herein as per attachment, with additional conditions to the SCHEDULE and all approved land applications before this amendment and the existence of any customary rights within the area should be excised from the survey of PT.9208222134.

2. This Offer is open and valid only until and shall lapse on 09 February, 2003.

3. Please return a copy of this accepted Offer to the Director of Lands and Surveys signifying your acceptance by signing in the place provided.

4. Please return the accepted Offer to the Director of Lands and Surveys before 09 February, 2003.

"KEARAH PENGURUSAN TANAH YANG SEJAHTERA" "BERKHIDMAT UNTUK NEGARA DENGAN CEKAP, BERSIH DAN AMANAH"

Saya yang menurut perintah,

TT

(HJ. DAHLAN BIN HJ. A.H. TENGAH)

b.P Pengarah Tanah dan Ukur.

Pursuant to the said letter the plaintiff expended a sum of RM15,965 as survey fee and the replacement land was duly surveyed and measured and the plan forwarded for approval. It turned out that the plaintiff was to encounter yet another disappointment because the alienation of the replacement land to the plaintiff like that of the said land was not to be. The offer contained in the said letter was capriciously withdrawn by the 1st defendant's letter dated 29 May 2004 (the withdrawal letter) which is reproduced. It is as follows:

Bil Kami: L.S.801.13366/vol.II(101) DAHT/rk Tarikh: 29 Mei 2004

Evergreen Frontier (M) Sdn Bhd

PO. Box 1316

90008 Sandakan(Fax:089-272005)

Tuan

OFFER OF AMENDMENT TO THE ACCEPTED OFFER

L.S. 801.13366/107 DATED 22 AUGUST 1997 -

PT.92082134 AT SG BANGAU-BANGAU, DAERAH LABUK/SUGUT

I am directed to refer to you in respect of the abovementioned offer which was issued under reference L.S801.1.3366(Vol.2)/10(aja) dated 09 November, 2002.

2. It