Zabariah Mohd Yusof FCJ:

Introduction

[1] The appellant, who was the plaintiff in the High Court appealed against the decision of the Court of Appeal, and obtained leave to appeal to the Federal Court on the following question of law:

"Whether the alienation of a qualified title by way of a lease by a State Authority under the National Land Code , 1965 gives rise to a contract of lease between the State Authority and the lessee that is enforceable in private law."

[2] The High Court granted judgment in favour of the plaintiff. However, upon appeal to the Court of Appeal, the judgment of the High Court was reversed. Hence the appeal by the plaintiff to this Court with the aforesaid question to be determined.

[3] In this judgment, parties will be referred to, as they were, in the High Court. This is the unanimous judgment of this Court.

Background

[4] On 31 July 1960, the State Authority alienated a piece of land described as HSD 4981, Lot TLO 6893, Bandar Johor Bahru, Johor (the land) to Sri Kemajuan Co Ltd for a term of 60 years (the lease). The lease was issued in Form 11A of the National Land Code 1965 ( NLC ) and was supposed to expire on 30 July 2020. However, before the ex