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2013 MarsdenLR 112

COURT OF APPEAL, PUTRAJAYA
FAUZIAH ISMAIL & ORS – Appellant
Versus
LAZIM KANAN & ORANG-ORANG YANG TIDAK DIKETAHUI – Respondent
[Civil Appeal No: B-02(IM)-2779-11-2012]



A Malay reserved land cannot be sold to a non-citizen; any sale transaction made contrary to the Malay Reservation Enactment is void ab initio.

Headnote:(A) Rules of Court 1980 (now Rules of Court 2012) - Order 14A and/or Order 33 Rules 2 & 5 - Malay Reservation Enactment (Chapter 142) - Appeal against dismissal of application regarding the sale of Malay reserved land to a non-citizen - Court determined that the sale was void ab initio due to lack of citizenship of the purchaser at the time of the transaction. (Paras 1, 18, 32)

(B) Land Ownership - The prohibition against sale of Malay reserved land to non-Malays is strict and designed to protect Malay ownership, indicating that long-term occupation does not equate to rightful ownership in contravention of the law. (Paras 28, 30)

Facts of the case:
The appellants, as registered owners, claimed for possession of Malay reserved land unlawfully occupied by respondents, who asserted ownership through a past sale agreement made when the purchaser was not a citizen. (Paras 3-6)

Findings of Court:
The court established that the sale was invalid under Malay Reservation Enactment, and the respondents could not substantiate their claim of ownership despite long-term occupation. (Paras 30-32)

Issues: The primary issue was whether the Malay reserved land could be sold to a non-citizen, which would determine ownership rights in the land. (Paras 16-17)

Ratio Decidendi: The court ruled that transactions involving Malay reserved land are void if contracted by non-Malays, affirming the need to adhere to the spirit of the law that seeks to protect Malay land ownership. (Paras 28, 32)

Result: Appeal allowed; judgment entered in favor of appellants.

Table of Content
1. appellants' land ownership and action initiated (Para 1 , 1)
2. ownership of malay reserved land (Para 2 , 3 , 5)
3. validity of sale to non-citizen (Para 4)
4. ownership and sale conditions of malay reserved land. (Para 6 , 7)

[1] The present appeal before us is against the decision of the learned High Court Judge dismissing the appellants'/plaintiffs' application under O 14A and/or O 33 rr 2 & 5 of the Rules of the High Court 1980 (now the Rules of Court 2012).

Factual Background

[2] The appellants are the registered owners of the land held under title GM 820, Lot 1642, Mukim Kajang, Daerah Hulu Langat, Negeri Selangor Darul Ehsan, which is a Malay reserved land (the said land).

[3] On 18 January 2009, the appellants discovered that the respondents were trespassing, occupying and staying on the said land without the consent of the appellants. The appellants then issued a notice dated 2 December 2009 for the respondents to vacate the said land. The respondents failed or refused to do so and subsequently on 14 May 2010 the appellants commenced an action at the Shah Alam High Court to remove the respondents from the said land.

[4] In their defence, the respondents (as the defendants at the High Court) contended that they are the lawful owners of the said land and averred that one Lazim bin Kanan (the named respondent/defendant) had entered into a sale and purchase agreement dated 16 December 1993 with the appellants' late father, one Ismail bin Duahat, who was at the material time the registered owner of the said land wherein the said Ismail bin Duahat had allegedly sold to the said Lazim bin Kanan part of the said land (where the respondents are now occupying) for a total consideration of RM5,000.00.

[5] It is not in dispute that the said land was and still is a Malay reserved land. ("Tanah Simpanan Melayu" - as appears in the relevant Form 5DK of the Geran Mukim). It is also not in dispute the said Lazim bin Kanan (the purchaser of the said land) was born in Indonesia on 13 November 1946 and had entered Malaysia vide Entry Permit Number A61045. Only on 16 December 2010, was he conferred the status of citizen of Malaysia under art 19(1)(a)(i) of the Federal Constitution. In other words, when the said sale and purchase agreement in respect of the said land was signed between the appellants' late father, Ismail bin Duahat and the said Lazim bin Kanan on 16 December 1993, the said Lazim was not a citizen of Malaysia.

[6] The said sale and purchase agreement was dated 2 August 1993 (as appears in the preamble) but was only signed by the parties on 16 December 1993. The contents of the said sale and purchase agreement is reproduced below:

" PERJANJIAN JUAL TANAH

BAHAWA satu perjanjian diperbuat pada hari ini bertarikh 2 Ogos, 1993 di Kajang, Selangor Darul Ehsan di antara ISMAIL BIN DUAHAT - KP No: 0571805(B) dari alamat SRD 662/1, Kg Sg Ramal Dalam, 43000 Kajang, Selangor Darul Ehsan (Adalah sebagai pihak 'Penjual Tanah') dan di satu pihak ialah LAZIM BIN KANAN - KP No. 8441715(M) dari alamat Sg Ramal Dalam, 43000 Kajang, Selangor Darul Ehsan (Adalah sebagai pihak 'Pembeli Tanah') seperti mana perjanjian yang dinyatakan di bawah:

BAHAWA penjual tanah memiliki tanah yang dikenali EMR: 5516 LOT: 1642 Mukim: Kajang, tanah tersebut terletak di Kg Sg Ramal Dlm mengaku telah menjualkan tanah seluas satu rantai sahaja kepada pembeli untuk mendirikan rumah kediaman bagi dapat pembeli dan keluarganya mendiami di atas tanah tersebut dengan harga sebanyak RM5,000.00.

Dengan ini tanah yang disebutkan itu adalah menjadi hak pembeli dan tiada orang lain berhak untuk ganggu atau sebagainya seperti mana telah saya persetujui dengan pembeli.

Pembeli dengan ini bersetuju dengan pengakuan dari penjual tanah itu dan dengan ini menyerahkan bayaran sebanyak RM5,000.00 secara tunai seperti mana dikehendaki oleh penjual.

Dengan ini pembeli membina sebuah rumah untuk kediaman keluarganya.

Dengan ini kedua-dua pihak telah bersetuju dengan syarat-syarat d

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