Federal Court dismisses appeal by Borneo Heights Sdn Bhd on land forfeiture case

Court. — DayakDaily.com file pic

By Dorcas Ting

KUCHING, March 7: The Federal Court has dismissed a leave application by Borneo Heights Sdn Bhd (BHSB) to appeal against an Order made by the Sarawak Superintendent and Surveys to forfeit three parcels of land that were meant for the development of Borneo Highlands Resort.

BHSB is a subsidiary of Country Heights Sdn Bhd.

The Federal Court led by Tan Sri Abang Iskandar Abang Hashim ruled that there was no merit in BHSB’s application and ruled that there would be no leave for BHSB to appeal to the Federal Court.

The Court also ordered costs of RM30,000 awarded to both the Sarawak government and the Land Custody and Development Authority (LCDA).

In September 1994, the State government had alienated a parcel of land with an area of 2,071 hectares for the development of a holiday resort in Borneo Heights, Padawan.

The land was then subdivided into Lot 48, 49, 50 and 51, Block 11 Pangkalan Ampat Land District.

Under the title conditions, the land must be used as a holiday resort and developed in accordance with a plan approved by the Director of Land and surveys and be completed by September 1999.

By 2020, the development of the holiday resort was not completed and the condition of the developed part of the resort, including a golf course and clubhouse were in a deplorable and dilapidated state. The State government then served notice on BHSB to remedy the breach of title condition and complete the development of the resort.

However, BHSB failed to comply with the Notice of Remedy.

On May 7, 2021, the government under Section 33(5) of the Land Code, forfeited three of the parcels, which are lots 48, 49 and 51 as there was no development on those lands.

The forfeited land then became State land under the control of the State government.

Lot 50 however was not forfeited as it had been developed into residential lots and sold by BHSB to various third parties.

In August 2022, the Court of Appeal (COA) dismissed the claim by BHSB for declaration to annul the Order of Forfeiture.

BHSB and its majority shareholder, Country Heights Holdings Berhad (CHHB) sought leave to appeal to the Federal Court.

BHSB and CHHB were represented by counsels Joshua Baru and Clarice Chan, Dato Sri Fong Joo Chung appeared for the State government, Sim Hui Chuang appeared for LCDA. — DayakDaily