Malaysia legislation

Section 18

of CONTROL OF RENT ACT 1966

Section 18

(a)

a plan for such development which has been approved by the local authority;

(b)

evidence that funds are available for the purpose of putting into effect such development;

(c)

a written undertaking by the landlord that work for the purpose of putting into effect such development will commence within three months of the date when possession of the premises shall have been obtained.

(2)

The Tribunal, after considering such application made under this section, may make an order or refuse to make an order; and when an order is made the Tribunal shall award to the tenant against whom the order is made a compensation—

(a)

in the case of a controlled premises or part thereof occupied or used for trade purposes as defined in subsection (10), such amount as the Tribunal may consider fair and reasonable provided that such amount shall not be less than a total of two years' rental but not more than a total of four years' rental;

(b)

in the case of a controlled premises or any part thereof which when originally let consisted of vacant land but there has since been erected thereon a building or buildings of a temporary character, an amount equal to the total of two years' ground rental and the value of the building or buildings thereon as determined by the Tribunal or the cost of demolishing the same and transporting the materials derived from such demolition to another site as the Tribunal may reasonably allow; and

(c)

in other cases, such amount as the Tribunal may consider fair and reasonable provided that such amount shall not be less than a total of one year's rental but not more than a total of two years' rental.

(3)

Nothing in this section shall entitle either the tenant or the owner of any building erected on a premises which when originally let consisted of vacant land if such tenant or owner does not pay any rent for occupying such premises to claim compensation against any order that may be made against him under this section.

(4)

Where the Tribunal makes an order under this section, the following provisions shall apply:

(a)

the landlord in whose favour the order is made shall within ten days of the making of the order deposit with the Tribunal the amount of compensation awarded under subsection (2) and if he fails to deposit the same the order shall, unless the Tribunal otherwise determines, be deemed to have lapsed and be void; and

(b)

every tenant against whom the order is made shall vacate the premises in question within ninety days or in the case of business premises within twelve months of the making of the order or within such extended period as may be allowed by the Tribunal; and in vacating the said premises or any part thereof such tenant may remove any building or structure erected by him on the said premises.

In this paragraph "business premises" shall include premises used partly for human habitation and partly for business, trade or professional purposes.

(5)

Upon vacating the said premises, the compensation awarded under subsection (2) and deposited under subsection (4) shall be paid to the tenant against whom the order was made.

(6)

Where the tenant fails to vacate the said premises within the period stipulated in subsection (4) (b), the Tribunal may, without any further order, take such measures (through a Rent Officer and including assistance of the Police) as are necessary to have the tenant or tenants evicted from the premises.

(7)

The premises vacated by the tenant or tenants under this section shall not be used by the landlord for any purposes other than the purpose of effecting developments in accordance with the plan approved for such purpose and until such developments are effected such premises shall remain locked.

(8)

Any tenant who without any cause fails to vacate the premises in contravention of an order made under this section, and any landlord who in contravention of subsection (7) uses any premises the possession of which is recovered under this section otherwise than for the purpose of effecting development in accordance with the plan approved for such purpose shall be guilty of an offence and shall on conviction be liable to a term of imprisonment not exceeding one year or to a fine not exceeding ten thousand ringgit or both and shall also be liable to a further fine of one hundred ringgit a day for every day during which the contravention continues.

(9)

A conviction under this section shall not be a bar to the prosecution of an offence under this section committed after such conviction.

(10)

For the purpose of this section, the expression "trade purpose" does not include the occupation or use of any premises or any part thereof as offices, schools, clubs, associations or any other similar purposes; and the total of years' rental shall be calculated with reference to the rent payable at the time when the application is made, and the expression "tenant" includes a subtenant and a joint-tenant.