Abdul Hamid Mohamad FCJ:

[1] A dispute arose regarding the entitlement to the sum of RM616,146 which was awarded as compensation for the acquisition by the State of a piece of land known as MCL 150 Lot 51 Mukim of Klebang Besar, Melaka (hereinafter referred to as "the said MCL land". The High Court gave judgment for the plaintiffs (the respondents herein). Appeal by the defendants (appellants herein) was dismissed by the Court of Appeal.

[2] This court, on 6 March 2006 granted leave to the appellants to appeal to this court on two questions:

(1) When land under Malacca Lands Customary Rights Ordinance (Cap. 125) ("the Ordinance") has been compulsorily acquired by the Government under the Land Acquisition Act 1960, does the prohibition in the Ordinance still apply to decide to whom the compensation shall be paid?; and

(2) Can the doctrine of fairness be used to override the principles of law and the Ordinance?

[3] We heard this appeal on 6 February 2007 and reserved our judgment. This is my judgment.

[4] The said MCL land was held under the Malacca Lands Customary Rights Ordinance (Cap. 125) ("the Ordinance"). Under the Ordinance, only a Malay domiciled in Malacca or a person holding a certificate from the Governor-in-Council of Malacca is qualified to hold an MCL land and no transfer of an MCL land "shall be valid unless it is made to an individual qualified to become customary land-holder."

[5] The registered owner of the MCL land is one Lee Chim Giang as the executor of the estate of Li Keng Liat, who died in 1903. Lee Chim Giang has also passed away. The present appellants are the current executors of the Estate of Li Keng Liat, deceased.

[6] In 1935, Tan Tai Tip, also since deceased, "purchased" the said MCL land from Lee Chim Giang who was then the executor of the Estate of Li Keng Liat. Tan Tai Tip, was not a Malay nor a person issued with a certificate by the Governor-in-Council to hold or to own the MCL land. In short, he was not a person qualified for an MCL land to be sold and transferred to. That explains why the land remained registered in the name of Lee Chim Giang, deceased. In this action the Estate of Tan Tai Tip, deceased, is represented by its administrators who are the respondents/plaintiffs.

[7] Without going into detail, I accept the finding of facts of the courts below which is very precisely stated by Abdul Aziz Mohamad JCA (as he then was) in the judgment of the Court of Appeal:

Since the sale, Tan Tai Tip and his relatives had been in quiet and uninterrupted possession of the land, had built dwellinghouses and lived on the land, had paid all quit rent and other dues, had been using the land for the planting of padi and vegetables and the rearing of cattle, and had been in possession of the document of title to the land. Although the land remained registered in the name of Lee Chim Giang as executor of the estate of Li Keng Liat, there was no claim to the land by any beneficiary of Li Keng Liat.

[8] By a proclamation dated 28 October 1981 in Form D under s. 8 of the Land Acquisition Act 1960, Pengarah Tanah dan Galian Melaka gave notice that the said MCL land was required for a public purpose, namely "kawasan perumahan". In 1982, an inquiry was held pursuant to s. 12 of the Act.

[9] By a notice in Form H pursuant to s. 16 of the Act dated 10 May 1982, the Collector of Land Revenue, Malacca made the following award by way of compensation in respect of the acquisition of the said MCL land:

1. Li Chim Giang Estate Of Li Keng Liat Tuan Tanah RM616,146.00

2. Tan Yed Lim Tuan Rumah RM28,200.00

3. Teo Seng Peladang & sebuah rumah RM55,100.00

4. Tan Ngiap Heng Orang Pemelihara Lembu RM338,730.00

[10] It is to be noted that the award contains four different compensations to be made to four different persons. They are, first, to "Tuan Tanah" (the land owner). The second compensation is paid to Tan Yed Lim. He had erected "a temporary building" on the said property, paying a nominal rent to Tan Tai Tip, d