Azmel Maamor FCJ:

[1] The Federal Court granted leave to the appellant to appeal to the Federal Court based on the following questions namely:-

1. Whether the Setiausaha Hasil Bumi for and on behalf of the Sabah State Government has the authority to approve the granting of any rights in or over a forest reserve or state land in Sabah;

2. Whether a letter of approval signed by the Setiausaha Hasil Bumi and communicated to the appellant created a binding contract to renew or extend the timber licence; and

3. Whether it is open to the Court of Appeal to reopen the finding of the trial Judge on quantum of damages when the figure and evidence presented were not even disputed or challenged by the respondent at the Court of first instance and even at the Court of Appeal.

[2] The appellant (the plaintiff in the Court of first instance) was granted a licence to fell and extract timber in a forest reserve in Keningau in the State of Sabah comprising an area of 5,665.59 hectares. The said licence was valid for a period of five years from 13 March 1993 to 13 March 1998. Because the appellant was unable to extract the timber in the said area within the period stated in the licence an applica