DISPOSAL OF LAND BY OTHER THAN ALIENATION

3.1 TEMPORARY OCCUPATION OF LAND (Form 4A)

Temporary Occupation Licence(TOL) is a licence that is issued under Chapter 2

Part 4 National Land Code. TOL is a form (Form 4A) of disposal of land by the
State Authority i.e. to allow land to be occupied or used.

3.1.1 Purpose Of Issue

TOL (4A) is issued for temporary used only for:-

a) cultivating for non permanent and seasonal crops.
b) to build a house or temporary building or that can be removed
c) public shows e.g. circus

3.1.2 Limitation Of Purpose For Which TOL Can Be Issued [s. 65 (2)]

TOL (4A) cannot be issued for the following purposes:

a) Mining
b) To remove rock materials and forest produce.

Definiti ons of “Rock material”

“Rock material” means any rock, stone,
granite, limestone, marble, gravel, sand,
earth, laterite, loam, clay, soil, mud, turf,
peat, coral, shell or guano with in or upon
any land , and includes also any
bricks, lime, cement or other co mmodity
manufactured therefore.
(NLC Sec. 5)

3.1.3 Lands In Respect Of Which TOL May Be Issued [s.65 (1)]

TOL can be issued in respect of any of the following lands:

a) State land,
b) Mining land not for the time being used for purposes of mining,
c) Reserved land not for the time being used for purposes for which it was
reserved.

A TOL cannot be issued within a permanent reserved forest land as defined in the
National Forestry Act 1984 as adopted by the States.
3.1.4 Person/Body To Whom TOL Can Be Issued

TOL can be granted to the following persons and bodies that is stated in Section
43 (NLC). The following persons and bodies are:
a) natural persons other than minors,
b) corporations having power under their constitutions to hold land,
c) sovereigns, governments, organizations and other persons authorized to
hold land under the provisions of the Diplomatic and Consular Privileges
Ordinance, 1957,
d) bodies expressly empowered to hold land under any other written law.

Other than those stated, TOL can also be issued to to the following persons;
a) Only to the Malays as for Malay Reservation Land,
b) Only to the indigenous people as for Indigenous Reservation Land,
c) Only to the Kelantanese as for Kelantan State Land.

3.1.5 Authority To Issue TOL ( s.66)

In the absence of contrary direction by the State Authority, a TOL can be issued
as follows:
a) by the Land Administrator(LA) in respect of the State land,
b) by the Land Administrator(LA) in respect of mining land provided that the
Senior Inspector of Mines or such other officers as may for the time being
be charged with the administration within the State of any written law
relating to mining, the lessee and any person/body entitled to the benefit
of the mining lease/certificate have consented to the granting of TOL,
c) by the Land Administrator(LA) in respect of reserved land provided the
officer who is in control of it has consented to the granting of the TOL.

S.66 (c)(ii) also provides that TOL can be approved by the officer who is in
control of it if he is being authorized to do so by the State Authority.

The contrary direction of the State Authority may be to the effect that
TOL cannot be approved by the LA or a TOL can be approved only when a
certain body or committee has given its consent.
3.1.6 Terms And Conditions Of TOL

By virtue of section 67(1) and (2) and 68 of the NLC, every TOL. issued is
subject to the following conditions:-
i) It will expire at the end of the year in which it commences unless
it is for the purpose of enabling any public exhibition or
entertainment to be held;
ii) It should not be used for any purposes other than that stated in it;
iii) It should not be used for the planting of permanent crops;
iv) It should not be used for the erection of any permanent building or
other permanent structure;
v) It may be renewed annually;
vi) It is not capable of assignment;
vii) It shall terminate in the event of the death of the person or the
dissolution of the body to whom it was issued;
viii) It may be cancelled immediately, and without payment of
compensation upon the breach of any provision to which it is
subject;
ix) It may be cancelled upon payment of compensation (to be agreed
or determined in accordance with section 434 of the NLC) at any
time before the date of expiry.

The conditions as in paragraphs (i) and (vii) could be different if the State
Land Rules specifies a different expiry date for a TOL and contains a
provision for assignment. The licence may contain other conditions as
provided in the State Land Rules. It is to be noted that any other conditions
prescribed in the State Land Rules should not be contrary to any of the
conditions as in paragraphs (iii), (iv), (vii), (viii) and (x).

3.1.7 Renewal Of TOL

S. 67 (1) of the NLC provides that TOL may be renewed annually. S.67(3)
provides that subject to the condition under which a TOL is issued, the Land
Administrator may on the application of a licencee renew such licence for a term
not more than one calendar year. S.67 (4) provides that the renewal is to be
effected by endorsing a note of renewal and the date of its intended expiry on the
existing licence.

S.66 (1) provides that TOL can be renewed by the Land Administrator only if
there is no contrary direction by the State Authority.
3.2 COMBINED TOL AND PERMIT TO EXTRACT AND REMOVE ROCK
MATERIAL (Form 4B)

The combined TOL and permit is issued in Form 4B of the NLC.

3.2.1 Purpose Of Issue

The purpose of issuing such a licence is to cater for a situation where extraction of
rock material cannot be carried on without the rights of occupancy. With such a
licence, the licensee can occupy the land and at the same time extract, process and
remove the rock material.

3.2.2 Lands In Respect Of Which Combined TOL And Permit May Be

Issued [s.65 (1)]

Combined TOL and permit can be issued in respect any of the following lands:
a) State land,
b) Mining land not for the time being used for purposes of mining,
c) Reserved land not for the time being used for purposes for which it was
reserved.

A TOL cannot be issued within a permanent reserved forest land as defined in the
National Forestry Act 1984 as adopted by the States.

3.2.3 Person/Body To Whom Combined TOL And Permit Can Be Issued

The combined TOL and permit can be issued only to any of those stated in S.43
of the NLC.

3.2.4 Limitation Of Purpose For Which Combined TOL And Permit Can
Be Issued (s.69(1)

Combined TOL and permit cannot be issued for the purpose of:
a) Extracting mineral or metal from the land
b) Removal of forest produce.

3.2.5 Authority To Issue The Combined TOL And Permit (Form 4B)

In the absence of contrary direction by the State Authority, a TOL can be issued
as follows:
a) By the Land Administrator(LA) in respect of the State land,
b) By the Land Administrator(LA) in respect of mining land provided that
the Senior Inspector of Mines or such other officers as may for the time
being be charged with the administration within the State of any written
law relating to mining, the lessee and any person/body entitled to the
 benefit of the mining lease/certificate have consented to the granting of
TOL,
c) By the Land Administrator(LA) in respect of reserved land provided the
officer who is in control of it has consented to the granting of the TOL.

S.66 (c)(ii) also provides that TOL can be approved by the officer who is in
control of it if he is being authorized to do so by the State Authority.

The contrary direction of the State Authority may be to the effect that
TOL cannot be approved by the LA or a TOL can be approved only when a
certain body or committee has given its consent.

3.2.6 Terms And Conditions Of Combined TOL And Permit (Form 4B)

By virtue of section 69 of the NLC, every combined TOL and permit issued
is subject to the following conditions:
i) It will expire at the end of the term specified in it;
ii) It should not be used for purpose other than the extraction processing
and removal of rock material as stated in it;
iii) The quantity of rock material extracted should not exceed the
quantity as specified in it;
iv) It is not capable of assignment;
v) It shall terminate in the event of death of the person or dissolution of
the body to whom it was issued;
vi) It may be cancelled immediately, and without payment of
compensation upon the breach of any provision to which it is
subject;
vii) It may be cancelled upon payment of compensation (to be agreed or
determined in accordance with section 434 of the NLC) at any time
before the date of expiry.

The condition as in paragraph (i) could be different if the State Land Rules
contains a provision for assignment. The combined TOL and permit may
contain other conditions as provided in the State Land Rules.

3.2.7 Maximum Period For Which The Combined TOL And Permit Can
Be Issued (s.69(1)(b))

The maximum term of a combined TOL and permit should not exceed five years.
There is no renewal.
3.3 PERMIT TO EXTRACT AND REMOVE ROCK MATERIAL (FORM 4C)

The granting of a permit Form 4C is another way of disposal of land by the State
Authority.

3.3.1 Purpose Of Issue

The permit is issued to extract and remove rock material.

3.3.2 Lands Of Which A Permit May Be Issued (s.70)

A permit to extract and remove rock material can be issued in respect of any of
the following lands:
a) State land
b) Alienated land
c) Mining land
d) Reserved land

3.3.3 Person/Body To Whom A Permit Can Be Issued (s.43)

Permit can be granted to the following persons and bodies:

a) Natural persons other than minors
b) Corporations having power under their constitutions to hold land
c) Sovereigns, governments, organizations and other persons authorized to
hold land under the provisions of the Diplomatic and Consular Privileges
Ordinance, 1957.

3.3.4 Limitation Of Purpose For Which A Permit Can Be Issued (s.70)

A permit for extraction and removal of rock material cannot be issued for the
following purpose:
a) Obtaining metal or mineral from the land
b) Removal of forest produce

3.3.5 Authority To Issue Permit (s.71)

In the absence of contrary direction by the State Authority, a TOL can be issued
as follows:
d) by the Land Administrator(LA) in respect of the State land,
e) by the Land Administrator(LA) in respect of mining land provided that the
Senior Inspector of Mines or such other officers as may for the time being
be charged with the administration within the State of any written law
relating to mining, the lessee and any person/body entitled to the benefit
of the mining lease/certificate have consented to the granting of TOL,
f) by the Land Administrator(LA) in respect of reserved land provided the
officer who is in control of it has consented to the granting of the TOL.

S.71 (d)(ii) also provides that TOL can be approved by the officer who is in
control of it if he is being authorized to do so by the State Authority.

The contrary direction of the State Authority may be to the effect that
TOL cannot be approved by the LA or a TOL can be approved only when a
certain body or committee has given its consent.

3.3.6 Terms and Conditions Of Permit

By virtue of section 72(1), (2) and 73 of the NLC, every permit issued is subject
to the following conditions :-
i) It will expire at the end of the year in which it is issued even though the
total quantity of rock material specified in it has not by then been
extracted and removed;
ii) It should not be used for purpose other than the extraction and removal
of rock material as stated in it;
iii) The quantity of rock material extracted and removal should not exceed
the quantity as specified in it;
iv) It is not capable of assignment;
v) It shall terminate in the event of death of the person or dissolution of the
body to whom it was issued;
vi) It may be cancelled immediately and without payment of compensation
upon the breach of any provision to which it is subject.
vii) It may be cancelled upon payment of compensation (to be agreed or
determined in accordance with section 434 of the NLC) at any time
before the date of expiry.

The conditions as in paragraphs (i) and (ii) above could be different if the State
Land Rules specifies a different expiry date or contains a provision for
assignment. The permit may contain other conditions as provided in the State
Land Rules.

3.3.7 Requirement Of Deposit (s.74)

Land Administrator will request the person/body to whom the permit is to be

issued to deposit such a sum of money as security for the following:
a. The due performance and observance of the provisions to which the
permit is subjected,
b. The rehabilitation of land to which the permit relates upon its termination.
3.4 PERMIT TO USE AIR SPACE ABOVE STATE LAND AND RESERVED
LAND (Form 4D)

Permit To Use Air Space Above State Land And Reserved Land is known also as
Form 4D.

3.4.1 Purpose Of Issue

TOL (4D) is issued for temporary used only such as:

a) To build , maintain and occupy building or structure over State Land or
Reserved Land as an adjunct to any structure on an adjoining land,
b) To build, maintain and occupy building on State and Reserved Land.

3.4.2 Application For Permit

The NLC (Section 75A) gives the power to the State Authority to approve the
issue of permit for the purpose of erecting, maintaining and occupying a structure
as stated in the NLC. Any application for a permit under s.75A shall be addressed
to the Land Administrator and accompanied by:
a) such fee as may be prescribed,
b) details of the structure to be erected and maintained,
c) a plan as approved by the appropriate planning authority i.e. Town
Municipal,
d) in the case of an application involving the use of air space for the purpose
of erecting a structure on or over reserved land, a letter of consent from
the officer for the time being having control of that land.

3.4.3 Authority To Issue Permit

LA shall issue on behalf of the State Authority.

3.4.4 Authority To Approve Permit

a) State Authority (except for air space permit for strata title),
b) Land and Mines Officer for strata titles.

If the application for a permit is in respect of reserved land, the consent of the
officer in control of the reserved land has to be obtained before the approval can
be obtained.

3.4.5 Conditions Of Permit

Every permit under s.75A shall be issued subjected to the following:-

a) An annual payment as may be determined by the State Authority
b) Such terms and condition as stated in section 75D of the NLC.
 3.4.6 Requirement Of Deposit Before Issuing A Permit

Before issuing a permit to use air space, the LA has to collect a sum of money or
other form of security to ensure that the permit holder performs and observes the
terms and conditions of the permit. But LA can do this only if he is directed to do
so by the State Authority (Section 75F of the NLC).

3.4.7 Cancellation Of Permit Upon Breach Of Condition

The permit can be cancelled by the State Authority if the holder commits a breach
of the rule, term or condition to which it is subject without payment of
compensation. Any deposit or security furnished under section 75F will be
forfeited to the State Authority.

The cancellation has to be decided by the State Authority. The LA on his own
cannot cancel the permit.

3.4.8 Cancellation Of Permit At The Discretion Of State Authority

Section 75G provides that the State Authority can cancel a permit even when the
holder does not commit a breach of any rules, terms or conditions. But in this
case, the State Authority has to pay compensation as may be agreed or determined
under section 434 of the NLC.

3.5 RESERVATION OF LAND FOR PUBLIC PURPOSES

Section 5 of NLC defines reserved land as “land for the time being reserved for a public
purposes in accordance with the provisions of section 62 or of any previous land law”.
Land reserved for railway purpose under the provisions of section 24 of the F.M.S. Land
Code (Cap 138) or the corresponding provision in the State land laws is also reserved
land as defined in NLC. Reserved land is normally maintained by officers of the STATE
OR Federal departments or by officers of the statutory bodies (including local
authorities).

3.5.1 Difference Between Reserved Land And Other Reserves

a) Reserved land:
Reserved land (or land reserved for a public purpose) is created under s.62
or the corresponding provision in the previous State land laws.
b) Other reserves:
i. Malay Reservation is created under the various Malay Reservation
Enactments.
ii. Reserved forest is under the various Forest Enactments
iii. Aboriginal reserved or area is under the Aboriginal Peoples Act, 1954
iv. Wild life reserve is under the Protection of Wild Life Act, 1972.

3.5.2 Leasing Of Reserved Land (s.63)

Leasing is one of the provisions to enable reserved land not used for the purpose
to be put to other uses. Only land reserved for a public purpose under s.62 can be
leased and this includes land reserved for railway under the previous land laws.
Reserved land can be leased for a period of up to 21 years.

3.5.3 Revocation Of Reservation Of Land Reserved For Public Purposes

Reservation of any land for a public purpose may be revoked either wholly or
partially at any time after the actions under s.64 (2) have been taken. S.64 (2) of
the NLC requires the gazetting of the notice of proposal to revoke the reservation
together with the details of a time and place at which an equiry will be held. S. 64
(2) also requires the State Authority to consider the report by the State
Commissioner of Land and Mines setting out the nature of any objections to the
proposal received by him at the enquiry and his observations on those objections
and on the proposal generally.

Revocation of reservation has to be made if the land reserved is to be alienated or

to be reserved for other purposes.