Harun J:

This is an appeal under s. 418 of the National Land Code (NLC). It concerns a piece of land known as Grant 2412 Lot 82 s. 53 in the City of Kuala Lumpur. The land measuring 31,853 sq. ft. was first alienated to Chin Lim Lee on 22 March 1900 in consideration of the sum of $180 -

To hold for ever subject to the payment therefor the annual rent of three dollars and eighth cents, and to the provisions and conditions contained in the Land Enactment, 1891.

Three other conditions endorsed on the said Grant are:

1. This Grant is subject to the condition that the Grantee shall within two years from the date hereof build upon the land herein described a substantial house to the value at least of $250 and that in default of performance of this condition by the Grantee it shall be lawful for the Resident to revoke this Grant and to resume possession on behalf of the Government of Selangor of the land herein described.

2. If the whole or any portion of the land described in the Grant be subsequently converted into building allotments, such allotments shall be liable to quit rent at the rate of $2 for every 2400 square feet contained therein.

3. The land described herein is affected by an order of the High Commissioner in Council dated 15 October 1952 under s. 4 of the Aerodromes (Control of Obstructions) Ordinance 1950, vide Legal Notification No 563 in the Gazette of 23 October 1952 this 23 November 1953 at 2.20 O'clock in the afternoon.

On 13 March 1974, the appellants became the registered proprietors of this land.

On 7 January 1975, the appellants applied to the Collector of Land Revenue, Federal Territory for

The alteration of the category of land use from Residential to Hotel.

under s. 124 NLC.

On 28 May 1975, the appellants applied to the Director of Lands and Mines of the Federal Territory for sub-division of the land under s. 137 NLC.

On 22 March 1976, the Director of Lands and Mines of the Federal Territory wrote to the appellants. That letter was received by the appellants on 26 March 1976. The English translation of the letter reads as follows:

M/s. Sri Lempah Enterprise, 60-C, Jalan Bukit Bintang, Kuala Lumpur.

Tuan, Application for: -

(i) Alteration of category of land use under s. 124(1)(a) NLC from which the land Grant 2412 Lot 82 s. 53 City of Kuala Lumpur is for the time being subject to imposing new express conditions under s. 124(1)(c) to enable the land to be used for commercial building;

(ii) Sub-division of the land under s. 137 NLC; and

(iii)Surrender of part of the land under s. 200 NLC for road improvements.

I am directed to inform you that the Land Executive Committee of the Federal Territory has considered this application and agreed that your application will not be considered in the manner presented. However, the Committee has agreed to approve the surrender of the whole of Grant 2412 Lot 82 s. 53 City of Kuala Lumpur when formal application is made in accordance with s. 197 NLC. Following surrender of the whole of the land the Committee agrees to approve the re-alienation of part of the land surrendered to the former proprietors of the land in accordance with the plots edged in blue on Plan R/ S Bil 114/74 for the construction of a four-storey hotel and three adjacent plots for shop-houses subject to the following conditions and payments:

A. Form of Title : Registry Title Term : Federal lease for 99 years Premium : $2.40 per sq ft Quit Rent : 12 sen per sq ft Survey's fees etc. : In accordance with prescribed rates. Category of Land Use : Building.

Express Conditions: -

(a) The land shall only be used for Commercial Building.

(b) The construction of building on the land shall comply with the Building Regulations issued by the Datuk Bandar.

B. Titles will not be issued and compensation will not be paid to you for areas required for road reserves as shown in yellow on plan R/S Bil 114/74.

2. The payment that is required to be made is as follows: - Additional Premium: $43