JUDGMENT

Ian H.C. Chin J:

This is an appeal under s. 41(1) of the Land Ordinance (Sabah) against the ''the decision of the Director of Lands and Surveys Department, Sabah in his original jurisdiction given vide his letter dated 26 February 1992 as amended vide his letter dated 13 March 1992''. The facts giving rise to this appeal are as follows.

On 9 February 1982 Korporasi Kemajuan Perikanan dan Nelayan Sabah (''Ko-Nelayan"), a statutory corporation established by the Korporasi Kemajuan Perikanan dan Nelayan Sabah (Ko-Nelayan) Enactment, 1981, submitted an application for 225 acres of State land ("the said land") and this application was numbered L.A. 82010038. On 29 February 1982 the Director of Lands & Surveys, Sabah, ("the respondent") offered to alienate the said land to Ko-Nelayan and the offer was accepted by Ko-Nelayan on 3 November 1982 when Ko-Nelayan, pursuant to the terms of offer, paid RM5,625 being payment of 25% of the premium payable to the Government of the State of Sabah, for the said land. Subsequently, on 4 October 1983, Sa-Mal (Sabah) Corporation Sdn. Bhd. ("the appellant") applied for 50 acres to be excised from the 225 acres of the said land that had already