Mohd Eusoff Chin SCJ:

[1] The appellant was the owner of Port Dickson- Lukut Estate (hereinafter referred to as the Estate). By a written sale and purchase agreement dated 20 March 1980, the appellant agreed to sell a portion of the Estate to the first respondent. This portion is now known as Grant No 4125, Lot 849 Mukim of Port Dickson, (hereinafter Lot 849) having an area (after acquisition of a portion of it by the Government) of approximately 139.5 acres. The estate is divided into 4 Divisions, and Lot 849 is in the Lukut Division. Lot 849 is contiguous to Lots 1516, 1517 and 1518 in the Lukut Division. Lot 849 was planted with palm oil and rubber.

[2] Clauses 4 and 5 of the agreement stated-

4. This Agreement is conditional upon the approval of the Estate Land Board to the sale of the said land to the purchaser. The parties hereto shall use their best endeavours to obtain such consent and if such approval and consent are not given or obtained before the completion date hereinafter referred to then and in that event the Vendor shall refund to the Purchaser the deposit referred to in cl 2(a) and thereupon this agreement shall be null and void and cease to have any force or effect and neither party shall have any claim against the other in respect thereof. The parties hereto shall within 21 days from the date hereof submit a joint application to the Estate Land Board for such approval as aforesaid.

5. Subject to cls 2 and 4 hereof, the Vendor shall within two (2) weeks of the completion date hand over to the Purchaser the relevant document of title to the said land and a valid and registrable Memorandum of Transfer thereof in favour of the Purchaser or its nominee or nominees and shall let the Purchaser into possession of the said land.

[Emphasis Added]

[3] On 14 April 1981 pursuant to cl 5 of the agreement, by a deed of assignment, the first respondent nominated the second respondent as the purchaser of Lot 849. This deed of assignment was acknowledged and consented to by the appellant on 22 September 1981 (see exh P4).

[4] On 22 September 1981, the second respondent having paid the purchase price of RM844,800 Lot 849 was transferred and registered into the name of the second respondent.

[5] The second respondent then applied and obtained approval from the State Authority of Negeri Sembilan for sub-division, and changing the category of land use from agriculture to dwelling and shop houses. The letter from the State Executive Council produced as exh D13 states-

Ruj Kami: (94) dlm SUKNS 200 (03) 389/1 Klt 2

Tarikh: 14 Julai 1986.

Kepada:

Dataran Segar Sendirian Berhad,

Lot, 46/381 & 47/381, Wisma Reka,

Taman Bukit Labu, Seremban,

Negeri Sembilan.

Tuan,

Per: Permohonan daripada Dataran Segar Sendirian Berhad untuk memecahkan sempadan tanah lot 849, Geran 4125 Mukim Port Dickson seluas 83.77 hektar (207) ekar dan menukar syarat lot-lot tanah yang telah dipecah sempadan daripada 'tiada' (pertanian) kepada bangunan kediaman dan bangunan per-niagaan dibawah s 124A Kanun Tanah Negara. (Kertas mesyuarat No: 638/86

[Emphasis Added]

Adalah saya diarah dengan hormatnya memaklumkan bahawa Majlis Mesyuarat Kerajaan yang bersidang pada 25 Jun 1986 yang lepas telah meluluskan permohonan tuan itu.

2. Syarat-syarat kelulusan itu akan disampaikan kepada tuan oleh Pejabat yang berkenaan dengan secepat mungkin.

Sekianlah dimaklumkan, adanya.

Saya yang menurut perintah,

t.t.

(Mohd Dahan Bin Abdollah)

Setiausaha

Majlis Mesyuarat Kerajaan,

Negeri Sembilan.

(Translation)

Our Ref: (94) dlm SUKNS 200 (03) 389/1 Klt.2

Date: 14 July 1986.

To:

Dataran Segar Sendirian Berhad,

Lot, 46/381 & 47/381, Wisma Reka,

Taman Bukit Labu, Seremban,

Negeri Sembilan.

Sir,

Subject: Application from Dataran Segar Sendirian Berhad for sub- division of lot 849 Grant 4125 Mukim Port Dickson, 83.77 hectres (207) acres in area and changing the category of land-use of the lots after sub-division from blank (agriculture) to dwelling house and commercial building under s 124A of the National Land Code (Me