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Empty promises

24/06/2008 The Star Articles of Law by BHAG SINGH

Promises made by government officers may have little or no value when it comes to the issue of land.

A PROMISE made by one person to another that is acted upon often leads to a binding arrangement. It is an arrangement that not only creates rights but can also be pursued and enforced.

But this is not always the case nor is it an absolute rule. Promises made by servants of the state to citizens, specifically on matters related to land, may have little value or no value at all. When this happens, there may be no option but to accept as a fait accompli what has transpired.

This state of affairs can arise in situations where individuals have been occupying a piece of land. It may be state land or private land. For one reason or another, the person may be asked to move. In the process, assurances are given that he will be given land elsewhere.

He may or may not then be given land to live on. Where land is made available for the purpose and pursuant to the promise made, he may at least feel assured that the promise is being pursued, if not carried out. But if nothing else happens, his dream may vanish when he is asked to move on.

A scenario

An example can be seen in the case of the Government of the State of Negri Sembilan & Anor v Yap Chong Lan & 12 Ors, which also involved a company called Lesco Development Corporation Sdn Bhd. This is a story of individuals who were dislocated twice from the land where they were staying, and were let down in the expectations that had been created.

Yap Chong Lan and the others were the aggrieved individuals who, with many others, lived in houses which they had built on land in Rahang Kecil, Seremban. They paid ground rent to Seremban Enterprise Ltd, the registered proprietor.

In April 1972, they were informed that a portion of the said land had been acquired by the state government for a road-widening project. The aggrieved individuals appealed to the collector for time to vacate and for low-cost houses on state land.

In due course, they were asked to attend an inquiry before the collector which they did, with regard to compensation as a result of the acquisition. They were offered, and they agreed to accept, varying amounts by way of compensation and were also allotted lots of land in Ulu Temiang for resettlement.

There was undisputed evidence before the court that they had appeared before the State Land Committee and submitted applications for state land in that area. Such events would no doubt create expectations that they would be allocated a piece of land to live on.

The letdown

But even as they were led to believe that they were going to be the owners of the land, the powers that were in charge of land administration and alienation, caused the land to be alienated for a term of 99 years to a company called Lesco Development Sdn Bhd.

Lesco was to develop the land in question into a housing estate and accordingly called on the aggrieved individuals and the other families settled there to deliver vacant possession of the parts occupied by them and demolish the buildings erected there. Each of them were offered compensation and an option to purchase a low-cost house at a reduced price, among others.

Several families accepted the offer but the aggrieved individuals were adamant and refused to accept the offer. They instituted proceedings to advance claims against the state government of Negri Sembilan and Lesco Development Sdn Bhd. They claimed to have a right to stay on the land.

Temporary relief

In the High Court, Justice Peh Swee Chin found that the collector did intimate to the aggrieved individuals that they would be allowed to remain on the land on a permanent basis and that they would be given leases for a term of 99 years in respect of the lots allocated to them.

He went on to decide that the aggrieved individuals had at all times been licensees of the land occupied by them, coupled with an equity. And that Lesco had notice or actual knowledge of the circumstances under which the aggrieved persons moved to Ulu Temiang and built their houses on the land in question, and that an equity arose in consequence.

To satisfy this equity, he ordered Lesco Development Sdn Bhd to pay monetary compensation in the sum of RM25,000 to each of the aggrieved persons and that on such payment, the aggrieved persons should vacate the land within two months and make consequential directions for the demolition of their houses and the expenses in connection therewith.

The response

The state government and Lesco Development Sdn Bhd were not happy with the decision. The matter ended up in the Federal Court where the niceties and technicalities of the law were entirely against the aggrieved individuals in their effort to obtain what they believed they were entitled to.

Abdoolcader F.J, in handing down the decision of the Federal Court, based his decision in part on the fact that the collector had no power to bind the state authority in making the commitment which had been made.

The judge reasoned along the lines that it was the state authority which had power to alienate land. Therefore he took the view that the collector had no authority to give the assurance that was given. He went on to say:

“The state authority may under the provisions of section 13 delegate the exercise or performance of any of its powers or duties to the collector, and on the evidence of the Acting Director of Lands and Mines. The collector has ? with the concurrence of the District Land Committee only been delegated with authority to approve the conversion of land not exceeding three acres in area for agricultural purposes, and he has no power to alienate land regardless of acreage for housing.”

The judge took the view that Section 48 prescribed that no title to state land shall be acquired by possession, unlawful occupation or occupation under any licence for any period whatsoever, and section 78(3) provided that the alienation of state land shall take effect on the registration of a register document of title.

And as Lesco Development Sdn Bhd had been alienated the land, they were rightfully entitled to the ownership and the consequential rights.

Conclusion

Whilst the statements made by the judge are based on the law, the reality is that to the ordinary individual, the collector and other senior officials in the Land Office are the agents of the land authorities to whom they have access.

How is an individual to know that he is not to rely on what he is told by a government officer who holds such a position?

Is it fair to expect the ordinary individual to know that it is the state authority and not the collector who decides?

And how is the individual to know who decides and who conveys the message to the public?

Of course, on the basis of the technicality of the legislation, the decision of the Federal Court would represent the existing law though it may be open to criticism. Where such a situation arises, the welfare of the individual can only be protected by judicial activism or legislative intervention.

The latter approach would involve a complex and tedious task which in our context is usually rare. In the former approach, the following statement by Dr Oliver Wendell Holmes would be worth reflecting upon: “Of relative justice, law may know something. Of expediency, it knows much. With absolute justice, it does not concern itself.”

 

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