The second ground of forfeiture is Breach of Conditions.
A condition may be imposed upon land
either expressly or impliedly and the breach of this condition can result in the forfeiture of land back
to the State Authority.
Section 103(1) defines a condition as any condition whether expressly or impliedly included in an
agreement which the State Authority is party to. A condition requiring continuous performance is
described as a condition that compels a proprietor to do or refrain from doing for the entire period
of alienation or for so much of that period remains After the date on which the condition takes
effect, After the expiry of any particular period specified, After the occurrence of a particular date or
event specified.
Section 104 has also expressly provided that every condition in interest imposed shall run with the
land and bind the proprietor and every person claiming interest in the land. The case of Collector of
Land Revenue, Johor Bahru v South Malaysia Industries Bhd even mentioned that The Federal Court
recognised this principle and held that the State Authority has the power to impose express
conditions upon a land and these conditions are binding upon the proprietor. The court found that
since the respondents had accepted the lease and continued possession of the land, the respondent
had contracted to observe and perform the conditions set upon said land.
For the breach of conditions, we can refer to Section 125(1), which explains that a breach of
condition requiring continuous performance shall arise when the condition is not complied with. The
case of Everest Aisvaram Sdn Bhd v Majlis Bandaraya Shah Alam also states that There had been an
express condition upon the land in this case. The land was restricted to only agricultural use
however, the applicant had built a factory upon the land. The court held that the applicant’s factory
situated on the land constituted a continuing breach of the express condition. Also Section 125(2)
states that a breach of a condition subject to a fixed term shall arise when A condition compelling
the performance of an act within a specified time however, failed to have been performed upon the
expiry of that time and Condition requiring any act to be refrained from until any time, upon the
doing of that act before that time. Section 126 further provides that where there is a condition
consisting of two or more independent obligations, failure to comply with any of the obligations shall
constitute a breach.
For the effect of breach, we can refer to Section 127(1)(a) which states that a breach in condition
shall render the alienated land liable to forfeiture to the State Authority. Section 127(1)(b) also
provides that except in cases where a fine has been imposed or the breach has been remedied, the
Land Administrator may proceed with the enforcement of forfeiture.
However there are exceptions to this rule. Firstly, is fines. Section 127 (1A)(a) states that the Land
Administrator may serve a notice in Form 7E which requires a proprietar why a fine should not be
imposed upon him. Subsequently, Section 127(1A)(b) mentions that upon failure to show cause by
the proprietor, the Land Administrator may then make an order for the payment of fine. Further,
Section 127(1B) provides that if the proprietor has paid the fine imposed by the order, no action
shall be taken under sections 128 and 129.
The second exception is remedy. It should be noted that every breached by virtue of s127(4). Section
128(1) provides that action to secure remedying of breach of condition is appropriate in cases where
(a) any alienated land is liable for forfeiture under section 127 and (b) the Land Administrator
recognises that the breach is capable of being remedied. The Land Administrator shall then serve a
notice in Form 7A to specify the action needed to be taken by the proprietor to remedy the breach
within a specified time. It was also provided under section 128(2) the Land Administrator must
endorse the notice on the register document of title. The notice acts as a waiver by the State
Authority on the condition that strict compliance is performed by virtue of S128(3) and if the notice
is complied with, the notice endorsed under subsection (2) shall be cancelled, however,if not
complied, the Land Administrator may take action under section 129.