JUDGMENT

Linton Albert JC:

The plaintiffs were granted a licence (the Timber Licence) to fell and extract timber in a forest reserve in the Keningau Region comprising an area of 5,665.59 hectares. The Timber Licence was valid from 13 March 1993 to 13 March 1998. The plaintiffs were aggrieved by the defendants'refusal to renew or extend the validity of the Timber Licence. Instead of the renewal or extension sought by the plaintiffs the defendants had issued a new licence confining the plaintiffs to a substantially reduced area of 2204.41 hectares, and the rest of the area under the Timber Licence measuring 3461.18 hectares was distributed to three other companies under separate licenses. The plaintiffs commenced proceedings claiming damages and various declaratory reliefs.

The plaintiffs'case rested on Condition 21 of the Timber Licence which is as follows:

If the Licensee shall be prevented by Act of God, war, acts of the enemies of Malaysia, civil commotion, or by any industrial dispute or other cause beyond the Licensee's control, from carrying out his obligations under Condition 6(i) and (ii), the Government shall grant to the Licensee such extension of time or other modificatio