LORD KEITH OF KINKEL, LORD BRIDGE OF HARWICH, LORD BRANDON OF OAKBROOK, LORD TEMPLEMAN, SIR ROBIN COOKE
UNITED MALAYAN BANKING CORPORATION BHD – Appellant
Versus
PEMUNGUT HASIL TANAH KOTA TINGGI – Respondent
(delivering the judgment of the Board): These consolidated appeals from the Federal Court of Malaysia raise issues regarding the validity of a notice of forfeiture of alienated land issued under the relevant provisions of the National Land Code 1965 ("the Code"), and also regarding the jurisdiction of the courts to grant relief against such forfeiture.
In December 1966 the State Authority of Johore alienated to the second appellants, under section 76 of the Code, approximately 20,680 acre of land in the district of Kota Tinggi for a term of 99 years in consideration of a stipulated annual rent and other conditions. The second appellants laid out very considerable sums of money in the development of the land for the purposes of a sugar plantation, and they also granted a number of charges over the land in favour of the first appellants, for the purpose of securing the repayment of loans which in November 1977 amounted to $ 5,334,163.60 with interest.
The rent payable by the second appellants in respect of the year 1977 was $ 124,080 plus education rate of $ 31,020. By virtue of section 94(2) of the Code that rent fell due on January 1, 1977, and,
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