WEAKNESSES OF LAND ADMINISTRATION IN MALAYSIA

1. Contrast of Section 340 and Section 380 in National Land Code

Court case 1 : Island & Penisular Development Bhd & Anor V Legal Adviserm
Kedah (1973)
Plaintiff : Island & Penisular Development Bhd & Anor
Defendant : Legal Adviserm Kedah

 Proposal of subdivision and amalgamation plan of lots 367,79 ad 1904 Mukim of Sungei
Patani, District of Kuala Muda, Kedah have summited by 1𝑠𝑡 applicant, Island &
Peninsular Development Bhd to land office.
 Subsequently, this plan has approved by the land office and agreed to build a row of 31
single storey terrace house. Island & Peninsular Development Bhd prepared the site
plan of the terrace houses for sales. However, they given the incorrectly plot numbers 1
to 33.
 In fact, the plot numbers were start run from left to right but they give the plot number
from right to left.
 Thus, the terrace houses’ purchaser got the grant to another lot.
 That means, they occupied the right houses but then got the wrong grants which the
grants are not registered on their name.
 In this situation, they do not have the ownership of the correct houses due to their
houses were registered in wrong grant.
 Yet, Island & Peninsular Development Bhd and the land office are not aware of that
mistake.
 That is shown clearly that it is mistake by the applicant who drew up the site plan.
 The registrar followed the 380 section in National Land Code and refused the application
to make correction of mistakes appearing in this case.
 The reason to turn down the request is:

i. Registrar was not satisfied there was any mistake as the documents of title were not
registered in the wrong names.
ii. Since a purchaser has bought and occupied the correct house, the resp maintain he
has been registered as proprietor of the correct grant due to under the Code, the
‘land’ consists all the things which is attached to the earth no matter on or below
the surface.
iii. under section 340 of the code, since the indefeasibility of the title registered by
proprietor, any alteration to the instruments of transfer or other documents is ultra
vires to his power.

 Based on the NLC section 380 (Correction of errors in documents of title),

1. where the registrar is satisfied:

a) That any document of title has been registered or issued in the wrong name, or contains any
misperception of land or other error or omission, or
b) That any memorial or other entry has been made in error on any document of title or other
instrument relating to land, or
c) That any memorial or other entry made on any such document of title or instrument itself
contains any error or omission, he may, subject to sub-section(2),(3), make such correction on
the document or interest in question as may be appropriate in the circumstances of the case.

2. The state director may if he thinks fit direct that, in such cases or class or classes of case as may
be specified in the direction, the powers conferred by sub-section(1) shall not be exercisable in
respect of land held under Land Office title, or the corresponding form of qualified title, except
with his prior approval
3. The said powers shall oy without his prior approval be exercised so as to affect plan prepared by
or on behalf of the director of surveyed and mapping , except in cases where he has taken action
under section 396A.
4. The Registrar shall maintain for the purposes of this section a book, to be called the ‘Collection
Note-book’, in which he shall record details of all corrections made by him thereunder.
From the case that we study above, we found that there are weakness for the section in the NLC. For
example, we realised that the section 380 in NLC section is not interpret clearly. Based on the section
380(1), the registrar has the right to make correction for the following situation, which is the wrong name,
or contains any misperception of land or other error or omission in documents of title. However, section
340 has stated that after the registration for the land title, the proprietor will get the indefeasibility title.
Indefeasibility of title means that the registered title of real property (land or buildings) determines who
has the priority interest or ownership of ownership of such property and the title can not to be challenge.
Therefore, this show that there is a contrast between section 380 and section 340.Section 380 is not give
the clearly explanation in this circumstance which cause the happened of Island & Peninsular
Development Bhd & Anor V Legal Adviserm Kedah [1973] case as we stated before. In this case,
when the mistake does not make correction, the proprietor will be facing difficulty during the land
dealings such as transfer and so on.
2. Equitable interests and unregistered instruments
Court case 2: Barry V Heider
3. Section 206(3) undermines the concept of Indefeasibility of title
Court case 3: Krishnadas & Ors V Maniyam
4. Uncertain basis for relief in the preregistration stage of transaction
Court case 4 : Templeton & Ors V Low Yat Holdings Sdn Bhd & Anor
Plaintiff : Alfred Templeton
Defendant : Low Yat Holdings Sdn Bhd & Anor

Subdivided the Mount Pleasure property, provide a road way

5. Limited protection afforded to the innocent registered owner

Court case 5: Tan Ying Hong v Tan Sian San & Ors