1. Disposal other than by
alienation
Areej Torla
areej@iium.edu.my

2. Powers of disposal
Section 42
By alienation
Alienation confers proprietary
rights.
RP has right of dealings with
the land etc.
Other than by alienation
1. Reservation
2. TOL
3. Permit
These types of disposals
confer „non-proprietary rights‟
relating to land.

3. 1. Reservation s.62
Section 62
SA may reserve State land for any public
purpose

4. 2. Temporary occupation license
(TOL)
Section 65
SA may permit TOL under:
State land
Mining land (not being used for mining)
Reserved land (not being used for the
purposed reserved)

5. Types of TOL
General purpose TOL
 Section 67
 Form 4A
 May be renewed up to
3 times, or more with
consent of SA
Special purpose TOL
 Section 69 (TOL
combined with permit to
extract and remove rock
material)
 Form 4B
 Maximum term of 5
years or more than 5
years with approval of
SA

6. Duration of TOL
Section 67 (1)
“Every TOL …shall be issued for a term
expiring not later than the end of the
calendar year in which it commences…”
However, it may be renewed on application
of licensee

7. Teh Bee v K Maruthamuthu
 Trial judge:
 “the holder under a TOL obtains no legal or equitable rights
over the land he occupies by virtue of the license other than
to occupy the land temporarily from year if he can have his
licence renewed annually…but there is no obligation on the
part of the authorities to grant a renewal of a TOL license for
any subsequent year…”

8. Renewal of TOL
Section 67 (3)
On application of the licensee
Renew for a term not more than 1 calendar
year
“Provided that there shall not be more than
3 renewals…” except with the approval of
SA.

9. Rights and restrictions of a TOL
holder
 TOL confers non-proprietory rights
 No right to sell/transfer/transmit upon death/anything that amounts to
an assignment of the TOL holder‟s rights and interest under the TOL
–S 68
 The TOL is personal to the holder
 TOL holder may enjoy other rights which do not amount to a
transfer
 Has the right to possession of the land, therefore the right to sue for
trespass
 Has the right to grant tenancy

10. Right to possession of land
 TOL holder can sue for trespass
 Julaika Bibi v Mydin [1961]
 Mohamed v Kunji Mohidin [1967] – TOL merely confers
exclusive possessory right but not ownership.

11. Right to grant tenancy
 Govindaraju v Krishnan
 The TOL holder rented out two rooms.
 He later terminated the tenancy. The tenants refused to leave
the premises.
 The tenants argued that the tenancy was void because he
was a mere licensee.
 Issue: Whether the letting of the rooms on a tenancy
amounted to a transfer
 Court: The tenancy did NOT amount to a transfer.

12. Not capable of assignment
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Section 68
Every TOL shall not be capable of assignment
Confers personal right on the holder
Any transaction amounting to a transfer or assignment of any rights under
the TOL is null and void
Hee Cheng v Krishnan [1955] –contract to purchase house built on TOL land
Paruvathy v Krishnan [1983] – gave “equal shares in the la nd” to two other
persons. Courtt: contravenes S 68, null and void
Use of the word „assignment‟ and „transfer‟
Note: Compare with Cheo Lean How v Fock Fong Looi [1985] 2 MLJ 440 
the TOL holder was not the person who sold the house,Supreme Court held
that the sale agreement was not in breach of the law.

13. Not capable of being inherited
Section 68
“Every TOL…shall terminate on the death
of the person…”
Therefore, not capable of being inherited
Papoo v Veeriah [1965]
Fatimah v Mohideen Kutty [1969]

14. Papoo v Veeriah [1965]
 Application to transfer house built on TOL land to the
widow of the TOL holder.
 Good J:
 “ A TOL is exactly what the name implies. It is a license
to occupy and nothing more…The license is personal
to the holder; it dies with the holder.”
  Neither the TOL land nor anything erected on it can
be transferred during the lifetime of the TOL holder nor
can it be passed by inheritance after his death.

15. Conditions
 S 67(3): Every TOL is subject to the conditions stated in the
license
 See Form 4A, Schedule
 The land may not be used for any purpose other than those
permitted and stipulated in the license

16. Termination/Expiration of TOL
 Teh Bee v K Maruthamuthu
 Ajaib Singh:
 “…the licence may be cancelled immediately, and without
payment of compensation, upon the breach of any provision to
which the licence is subject but otherwise a subsisting licence
may be cancelled at any time before the date of expiry only
upon payment of compensation…”
 “But in no circumstances, however, can a person who has
occupied land on a TOL acquire a right to be compensated by a
subsequent holder of a TOL of the land or a subsequent
registered proprietor thereof…for any expense that he might
have incurred over the land…”
 See also: Schedule to Form 4A, paragraph 5.

17. Effect of termination of TOL
 The ex-licensee who remains on the land is a squatter /
trespasser
 Public Prosecutor v Yap Tai [1947]
 No further renewal of TOL was granted.
 Prosecuted for unlawful occupation of State land.
 Court: The true position of the ex-licensee was that of a
trespasser.

18.  All buildings existing on the land shall revert to the State
Authority without compensation upon termination or expiry of
the TOL
 Section 47 (1) & (2)
 Teh Bee v K. Maruthamuthu
 Papoo v Veeriah

19. 3. Permit s.70
 Permits for extraction, removal and transportation of rock
material.
 Rocks can only be utilised within the boundary. Need permit
in order to remove it from the boundary.
 From any State land, alienated land, reserved land and
mining land.
 Consent from the relevant people are required. Section 71

20. Example of question on TOL
 Nabil possess a piece of agriculture land in Nilai, upon which
he has built a concrete house. In February 2011, Nabil
agreed to sell the land and house to Johan for RM50,000
under a sale and purchase agreement. Unknown to Johan,
the land was actually held under a temporary occupation
licence that will expire on 31st December 2011. Johan later
found out that the land office has sent a notice to Nabil to
terminate the temporary occupation licence for breach of
conditions.

21.  Advise Johan on the following:
 Whether he has any legal interest in the land and house based
on the sale and purchase agreement that he signed with Nabil?
 Whether the temporary occupation license can be terminated by
the land office due to breach of conditions and the effect of
termination thereof?
 Whether he can claim compensation from the land office for the
house built on the land?