33

(1)

(a)

There shall, by virtue of this section, be implied in every document of title the condition that in case of a breach of, or a default in, the observance or compliance with any of the conditions, restrictions or other obligations in the said document of title, whether expressed therein or contained in or implied by this Code, and such breach or default is not remedied in accordance with subsection (2), the Director or any other officer authorized by him may, subject to this section, and with the approval of the Minister, on or behalf of the Government, declare the estate or interest secured by that document of title to be forfeited and re-enter the land or the portion thereof in respect of which the breach or default has occurred.

(2)

Where there is any breach or default in the observation or compliance with any condition, restriction or other obligation expressed in a document of title or contained in or implied by this Code, the Superintendent, with the concurrence of the Director, may serve on the registered proprietor of the said land and any person having a registered interest in the land, a written notice requiring him to remedy the breach or default within a period of not less than ninety days from the date of service of the notice thereof and to pay a penalty for such breach or default of not exceeding Ten Thousand Ringgit and, in the case of a continuing breach or default, to pay a further penalty not exceeding Five Hundred Ringgit per day from the date of service of notice thereof till the date when the breach  or default is remedied.

(3)

(a)

The registered proprietor and any person having a registered interest in the land may, within twenty-eight days from date of service on him a notice referred to in subsection (2), appeal in writing to the Director either on the ground that there was no breach or default committed by him or that the penalty imposed was excessive, or on grounds as would entitle the Director to direct a withdrawal of the notice.

(b)

Upon consideration of the appeal, the Director may reaffirm the decision of the Superintendent, modify or vary that decision or the penalty imposed or direct a withdrawal of the notice.

(c)

Where the Director decides to reaffirm the decision of the Superintendent, or to modify or vary the decision, the registered proprietor and any person having a registered interest in the land shall, within sixty days from the date of receipt of the decision of the Director, remedy the breach or default as specified in the notice issued by the Superintendent under subsection (2) or with such modification or variation thereto as may be directed by the Director. 

(4)

(a)

Upon service of the notice under subsection (2), the Superintendent shall cause to be made an endorsement on the Register to the effect that the said land is subject to action taken under this section for breach of, or a default in, the observance or compliance with any of the conditions, restrictions or other obligations in the document of title, and until and unless the endorsement is cancelled, the same shall operate as a caveat against any dealing affecting the land. Act 359.

(b)

Where the breach or default has been remedied in compliance with the notice issued by the Superintendent under subsection (2), he shall cancel or cause to be cancelled the endorsement made pursuant to paragraph (a) 

(5)

Where the registered proprietor or the person having registered interest in the land:

(a)

fails or refuses or neglects to remedy the breach or default within the period stipulated in subsection (2) or (3) or within such extended period as the Director may permit; or 

(b)

fails to pay the full penalty imposed under subsection (2), the Director , after consulting the Minister, may make an Order declaring that the land is forfeited to the Government, and shall cause a copy of the said Order to be serve on the registered proprietor and any person having a registered interest in the land and shall further cause a copy of the said Order to be registered under this Code. 

(6)

(a)

Any person who was the proprietor of the land immediately before its forfeiture under this section, may, within six months from the date thereof, apply in writing to the Minister for the annulment of the forfeiture. 

(b)

The Minister may, in his absolute discretion, refuse such application or if he approves it, the approval shall be subject to the payment by the applicant-

(i)

if the forfeiture was for non-payment or rent, of such penalty not exceeding ten times the sum which he was required to pay under the notice served upon him by the Superintendent under subsection (2), as the Minister may impose; or 

(ii)

if the forfeiture was for breach or default in the observance of or compliance with any condition, restriction or other obligation in the document of title, of such amount as the Minister may determine in respect of the expenses occasioned by the forfeiture and having regard to any gain derived from the breach or default and the nature thereof; or 

(iii)

if the breach or default is consequent upon the construction or erection of an unauthorized building or structure on the land, the full costs and expenses estimated by the Minister for the demolition of the building or structure, unless the person applying for the annulment of the forfeiture demolishes the building or structure at his own costs and expenses.

(7)

The acceptance of any rent or premium by or on behalf of the Government shall not operate or be deemed to have operated as a waiver of the right of forfeiture and re-entry of the land, under this section. [Sub. Cap.A50]