Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
PUBLIC BANK BERHAD vs RIA REALITI SDN BHD & ORS - Court of Appeal Putrajaya & JODDARI @ JADDARI ABD KARIM vs THE PERSONAL REPRESENTATIVE OF THE ESTATE OF SANGKANG ABU SAMAN & ORS.... - High Court Sabah & Sarawak Tawau: Focus on land dealings, native land restrictions, and valuation but lack specific provisions on reserved price restrictions.
Market and Force Sale Values Are Recognized in Valuation Contexts Several sources highlight that the market value of land is determined by the highest price a willing buyer and seller agree upon, often used for valuation purposes (e.g., JODDARI @ JADDARI ABD KARIM vs THE PERSONAL REPRESENTATIVE OF THE ESTATE OF SANGKANG ABU SAMAN & ORS.... - High Court Sabah & Sarawak Tawau, DARIUS HOINDI vs THOMAS HINJIANG & ORS - High Court Sabah & Sarawak Kota Kinabalu). The law aims to reflect true market value rather than arbitrary or undervalued prices.References:
DARIUS HOINDI vs THOMAS HINJIANG & ORS - High Court Sabah & Sarawak Kota Kinabalu: Emphasizes the importance of actual market value over notional or undervalued prices, especially in legal and taxation contexts.
Legal Cases and Land Transactions Court decisions underline that land dealings must adhere to the provisions of the Land Ordinance, particularly registration requirements (e.g., s 88) and proper valuation. While these cases discuss valuation and legality of transactions, they do not explicitly restrict the setting of reserved prices below force sale values.References:
Based on the reviewed sources, there is no clear provision or restriction within the Sabah Land Ordinance (Cap 68) or the Land Rules that explicitly prohibits setting the reserved price below the force sale value. The Ordinance emphasizes proper valuation, registration, and dealings of land, with a focus on reflecting true market value rather than arbitrary pricing. While valuation standards aim to prevent undervaluation, the law does not explicitly restrict the setting of reserved prices in relation to the force sale value.
In summary:- No specific provisions or restrictions under Sabah Land Ordinance or Land Rules explicitly prohibit setting a reserved price below the force sale value.- The legal framework emphasizes fair valuation and proper registration but leaves room for the reserved price to be determined by the parties, provided it aligns with market value principles.
References:- INNOWEST SDN BHD vs THE DIRECTOR OF LANDS AND SURVEYS - High Court Sabah & Sarawak Kota Kinabalu, PUBLIC BANK BERHAD vs RIA REALITI SDN BHD & ORS - Court of Appeal Putrajaya, JODDARI @ JADDARI ABD KARIM vs THE PERSONAL REPRESENTATIVE OF THE ESTATE OF SANGKANG ABU SAMAN & ORS.... - High Court Sabah & Sarawak Tawau, HASSNAR MP EBRAHIM vs SAFAR UNTUNG & ORS - 2021 MarsdenLR 525, DATU MOHD ALI DATU PULLAH vs ALBERTO DOMINGO - High Court Sabah & Sarawak Tawau
In the dynamic world of Sabah's property market, land auctions and sales often hinge on critical decisions like setting the reserved price. But what if that price dips below the force sale—or market—value? Is there a legal barrier under the Sabah Land Ordinance (Cap 68) or the Sabah Land Rules? This question arises frequently for landowners, developers, and legal practitioners navigating land transactions in Sabah.
Is there any provision or restriction under the Sabah Land Ordinance or Land Rules that prohibits the reserved price from being set below the force sale value? Generally speaking, based on available legal documents, the answer appears to be no—there is no explicit prohibition. However, this blog post dives deeper into the analysis, drawing from key cases, guidelines, and statutory references to provide clarity. Note: This is general information and not specific legal advice. Consult a qualified lawyer for your situation.
The core takeaway from reviewing the Sabah Land Ordinance, Land Rules, and related judicial decisions is straightforward: there is no specific provision explicitly prohibiting the setting of a reserved price below the force sale (market) valueHASSNAR MP EBRAHIM vs SAFAR UNTUNG & ORS - 2021 MarsdenLR 525Nareshbhai Bhagubhai VS Union of India - 2019 0 Supreme(SC) 849.
The Ordinance and Rules primarily focus on the processes of land alienation, registration of titles, and validity of interests in land, rather than mandating minimum pricing thresholds. For instance:- Interests in land are valid only upon registration of title, and mere applications or payments do not constitute approval HASSNAR MP EBRAHIM vs SAFAR UNTUNG & ORS - 2021 MarsdenLR 525.- No clause restricts the reserved price to be at or above market value SYNERGY PROMENADE SDN BHD vs FELDA INVESTMENT CORPORATION SDN BHD & ANOR - 2021 MarsdenLR 1909.
This absence of restriction allows competent authorities flexibility in setting floor prices, provided they follow fair assessment processes.
Key sections of the Sabah Land Ordinance, such as Section 12, deal with applications, registration, and land interests, but make no mention of pricing mandates HASSNAR MP EBRAHIM vs SAFAR UNTUNG & ORS - 2021 MarsdenLR 525. Similarly, the Land Rules emphasize procedural compliance over price controls INNOWEST SDN BHD vs THE DIRECTOR OF LANDS AND SURVEYS - 2021 MarsdenLR 2937.
In one case, the court clarified that land dealings must adhere to the Ordinance's provisions, stating: to the provisions and conditions contained in the LandOrdinance (Sabah Cap.68). ... SabahLandOrdinance (Cap 68) and the LandRules and therefore void INNOWEST SDN BHD vs THE DIRECTOR OF LANDS AND SURVEYS - 2021 MarsdenLR 2937. This underscores strict adherence to processes, not pricing.
Market value is a recognized concept, determined by criteria like:- Recent sale prices in the area.- Average sale prices in the vicinity.- Local enquiries and other valuation methods Nareshbhai Bhagubhai VS Union of India - 2019 0 Supreme(SC) 849.
While these methods ensure a fair and transparent assessment, they do not require the reserved price to match or exceed the market value. Authorities can set the floor price based on such data, even if below force sale value, without violating the law Nareshbhai Bhagubhai VS Union of India - 2019 0 Supreme(SC) 849.
For example, in valuation contexts, the purchase price from a recent sale and purchase agreement was accepted as market value by authorities like the Stamp Duty Department JODDARI @ JADDARI ABD KARIM vs THE PERSONAL REPRESENTATIVE OF THE ESTATE OF SANGKANG ABU SAMAN & ORS.... - 2022 MarsdenLR 1030. Yet, this reflects evidentiary value, not a pricing floor for reserves.
Judicial decisions reinforce the procedural focus:- In a case on land sales, the court emphasized registration over pricing: the process is regulated by the Ordinance, and interests in land are only valid upon registration HASSNAR MP EBRAHIM vs SAFAR UNTUNG & ORS - 2021 MarsdenLR 525. No discussion on reserve price restrictions.- Native land sales highlight restrictions on sales to non-natives under Sections 17 and 64, but again, no pricing mandates PUBLIC BANK BERHAD vs RIA REALITI SDN BHD & ORS - 2021 MarsdenLR 1971.- Another ruling noted: SabahLandRules (G.N. 505 of 1930), have a whole portion devoted to 'SALE OF LAND BY CHARGEE' from Rule 14(17) SHIM VUI GEH vs DAYANG MASTURA SAHARI & ANOTHER APPEAL - Court of Appeal Putrajaya, focusing on chargee sales without minimum price rules.
Additional sources confirm this:- Land transactions must comply with Sections 9 and 88 of the Ordinance and Rule 2(4) of the Land Rules, prioritizing validity over value thresholds JODDARI @ JADDARI ABD KARIM vs THE PERSONAL REPRESENTATIVE OF THE ESTATE OF SANGKANG ABU SAMAN & ORS.... - 2022 MarsdenLR 1030.- Alienation processes are clearly laid out, with no alienation prohibitions tied to pricing for projects MLGH (SABAH) SDN BHD & ANOR vs RAINBOW BAY SDN BHD & ANOTHER APPEAL - Court of Appeal Putrajaya.- Unregistered interests, like sub-leases, are invalid under the Ordinance MY COVE SDN BHD vs EL NUTRITION SDN BHD & ORS - High Court Sabah & Sarawak Tawau.
These cases collectively show the law's emphasis on proper authority, registration, and processSYNERGY PROMENADE SDN BHD vs FELDA INVESTMENT CORPORATION SDN BHD & ANOR - 2021 MarsdenLR 1909DATU MOHD ALI DATU PULLAH vs ALBERTO DOMINGO - 2025 MarsdenLR 5002, not on enforcing reserved prices above market value.
While no explicit bans exist, certain principles may indirectly influence pricing:- Transparency and fairness: Valuation must reflect true market conditions to avoid disputes Nareshbhai Bhagubhai VS Union of India - 2019 0 Supreme(SC) 849.- Native title restrictions: Sales of native land to non-natives are barred, impacting dealings but not reserves directly PUBLIC BANK BERHAD vs RIA REALITI SDN BHD & ORS - 2021 MarsdenLR 1971.- Procedural rules, like those for chargee sales, ensure compliance but don't set price floors SHIM VUI GEH vs DAYANG MASTURA SAHARI & ANOTHER APPEAL - Court of Appeal Putrajaya.
Outside Sabah-specific laws, analogous provisions elsewhere (e.g., prohibitions on transfers to non-agriculturists) declare invalid transfers but don't tie to reserves BHANJI DEVSHIBHAI LUHAR VS STATE OF GUJARAT - 2011 Supreme(Guj) 315 - 2011 0 Supreme(Guj) 315. In Sabah, however, the documents reviewed show no such linkage.
To navigate this landscape safely:- Ensure transparent valuations: Use recent sales, local data, and expert assessments to justify any reserved price Nareshbhai Bhagubhai VS Union of India - 2019 0 Supreme(SC) 849.- Prioritize registration: All interests must be registered for validity HASSNAR MP EBRAHIM vs SAFAR UNTUNG & ORS - 2021 MarsdenLR 525.- Seek authority approval: Only the Director or competent authority can alienate land properly SYNERGY PROMENADE SDN BHD vs FELDA INVESTMENT CORPORATION SDN BHD & ANOR - 2021 MarsdenLR 1909.- Monitor for amendments: Future changes could introduce restrictions; stay updated.
Authorities setting lower reserves should document rationale to preempt challenges on fairness grounds.
In summary, the Sabah Land Ordinance and Land Rules do not explicitly prohibit setting reserved prices below force sale value. The framework prioritizes procedural integrity, registration, and fair valuation methods over rigid price controls HASSNAR MP EBRAHIM vs SAFAR UNTUNG & ORS - 2021 MarsdenLR 525Nareshbhai Bhagubhai VS Union of India - 2019 0 Supreme(SC) 849INNOWEST SDN BHD vs THE DIRECTOR OF LANDS AND SURVEYS - 2021 MarsdenLR 2937.
Key Takeaways:- No statutory clause mandates reserved prices ≥ market value.- Focus on process: alienation, registration, and authority compliance.- Valuation guides exist but allow flexibility.- Always consult professionals for case-specific advice.
For Sabah property dealings, understanding these nuances can prevent pitfalls. If you're involved in land sales or auctions, this flexibility may offer strategic options—just ensure compliance.
References:1. HASSNAR MP EBRAHIM vs SAFAR UNTUNG & ORS - 2021 MarsdenLR 525: Registration and process emphasis.2. Nareshbhai Bhagubhai VS Union of India - 2019 0 Supreme(SC) 849: Market value criteria.3. SYNERGY PROMENADE SDN BHD vs FELDA INVESTMENT CORPORATION SDN BHD & ANOR - 2021 MarsdenLR 1909: Alienation authority.4. INNOWEST SDN BHD vs THE DIRECTOR OF LANDS AND SURVEYS - 2021 MarsdenLR 2937: Ordinance compliance.5. PUBLIC BANK BERHAD vs RIA REALITI SDN BHD & ORS - 2021 MarsdenLR 1971: Native land restrictions.6. JODDARI @ JADDARI ABD KARIM vs THE PERSONAL REPRESENTATIVE OF THE ESTATE OF SANGKANG ABU SAMAN & ORS.... - 2022 MarsdenLR 1030: Valuation acceptance.7. SHIM VUI GEH vs DAYANG MASTURA SAHARI & ANOTHER APPEAL - Court of Appeal Putrajaya: Chargee sales rules.
#SabahLandLaw, #LandOrdinance, #PropertyValuation
to the provisions and conditions contained in the Land Ordinance (Sabah Cap.68). ... Sabah Land Ordinance (Cap 68) and the Land Rules and therefore void." [36] This approach is also taken by the Courts in respect of other provisions of the Land Ordinance. For example, in Borneo S....
We pointed out earlier in paragraph [20] that the Sabah Land Ordinance (Cap 68) bars sale of land held under customary tenure under Part 1 and land held under native title to a nonnative. The Sabah Land Ordinance (Cap 68) was enacted in 1930 during the colonial period. ... the law and in particular ss 17 and 64 of the Sabah#....
Sabah Land Rules (G.N. 505 of 1930), have a whole portion devoted to "SALE OF LAND BY CHARGEE" from Rule 14(17) of the Sabah Land Rules provides as follows: Sabah Land Ordinance (Cap 68)("SLO"), security over land is created by way of a charge. The instrument of charge is in the Me....
Sabah Land Ordinance , whereas the 1st Defendant's claimed interest is through an unregistered memorandum of sub-lease.
(see s 9 and s 88 of the Land Ordinance, and r 2(4) of the Land Rules; see also Workon Sdn Bhd v. ... The purchase price of RM400,000.00 vide the sale and purchase agreement in 2018 will be taken to represent the market value of the land - which figure was accepted by the Stamp Duty Department - since that was the last available indicator. ... The Powe....
In the partition matter, there were 98 tenants on the land and the total monthly rent was Rs.8,000 for the entire land and 80 vendors were occupying the land for hawking business during daytime and, thus, the consideration of Rs.78,69,000 was the best possible price. ... We do not accept the contention that the mere wordings of these different provisions in any way take away the fundamental intent with wh....
It was thus suggested that the magnitude of the deceased's estate - benchmarked against the sale price of the Land to the 2nd Defendant "is more suitable to be dealt under the Probate and Administration Ordinance and have the matter heard in the High Court ." ... [13] The Plaintiff appealed - against the decision removing his caveat - to the Director of Lands and Surveys under Sabah Land#HL_EN....
Land Ordinance that prohibits the alienation of the Land for the Project. ... The alienation of state land is regulated by the Sabah Land Ordinance which lays out clear provisions on the process of alienation of land in the state of Sabah. [25] It is plain and clear that a href="../legislationSectio....
The alienation of state land is regulated by the Sabah Land Ordinance which lays out clear provisions on the process of alienation of land in the State of Sabah. ... [22] After having looked at the relevant provisions under the Ordinance and the Sabah Land Rules, His Lordship dism....
measuring approximately 16.10 hectares (40 acres) situated at Sg Sahabat Tendu, District of Lahad Datu, Sabah ("the said Land") under O 89 Rules of 2012. ... [8] Thus, the plaintiff submitss that he does not have any good title to pass to the defendant when he entered into the sale and purchase agreement in 2018, rendering the S&P bad in law, illegal and void ab initio under the Sabah Land#HL_....
16. Settlement Rules framed under the Assam Land and Revenue Regulation prohibits possession or settlement of any VGR unless such VGR is de-reserved first. In the instant case, the Deputy Commissioner allotted the land in favour of the respondent No. 4, without there being a final order passed by the Government of Assam under rule 95A of the Settlement Rules though the land in question is a part of VGR. The notification dated 20.01.1968 issued by the Government of Assam also ....
That there is no law that restricts resale of products at a discounted price. The Legal Metrology Act prohibits sale of products for a price over the MRP, but there is no restriction on sale below the MRP. That as a policy, Amazon delists any products which are sold on its platform at an MRP higher than that of the product, upon being notified of the same.
A glance at the provisions shows that by virtue of Sec. 54, the Ordinance prohibits, except as provided therein, transfer by way of sale (including sale in execution of decree of Civil Court) gift, exchange or lease, of any land (covered under Sec. 2(k) of the Ordinance) to a non-agriculturist. Any transfer of land made to a non-agriculturist (except as provided) is, by the statute, dec1ared invalid. The first proviso provides exception in case of transfer by sale etc. to non....
(ix) if the allotment of land is cancelled or the land is ordered to be resumed under the provisions of the Rajasthan Land Revenue Act, 1956 (Rajasthan Act No.15 of 1956) or rules framed thereunder or under any other law for the time being in force. (viii) if he migrates from India to a foreign country without obtaining a valid passport or without lawful authority; For the purpose of clause (viii), a tenant who moves or enters into a foreign country without obtaining a valid ....
The said judgment and order was reconsidered and approved by the Hon’ble Supreme Court in New Delhi Municipal Committee v. M/s. Gymkhana Club Ltd. and others, (1994) 3 SCC 498, wherein the Court held that while fixing the annual value of the premises, the authority concerned must keep in mind the restrictive clause of each of the lease deeds and the notional market value shall have to be discounted appropriately as the restriction subject to which leases were granted, would undoubtedly depress....
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