Loopholes in Law Relating to Land Fraud in Malaysia
Abstract
The increasing cases of land fraud in land administration is a very worrying trend as it erode public confidence in land administration. The main objective of this paper is to identify the loopholes in the statutes applied in the land registration process such as the National Land Code (Act 828), the Contract Act 1950 (Act 136), the Power of Attorney Act 1949 (Act 424) and the Statutory Declaration Act 1960 ( Act 783). As well as provide proposed suggestions for harmonising these statues in order to make improvements and reduce the number of fraud cases in the area of land dealings. This discussion also examines several statutes, whether they are able to provide solution to the problem of land fraud. Therefore, it is important that these statutes be immediately amended in order to protect landowners and interested parties who have become victims due to the existing provisions, which may not offer remedies, protection or a limited scope that denies protection of fraud victims. The library research and content analysis methods are being used in this study such as decided cases, books, articles and journals. The findings of this research indicates that there are gaps in these statutes that allow for land fraud to be exercised. This study will outline several recommendations for improvement to ensure the interests and rights of all parties involved are protected.
Keywords: Loopholes, selected statutes, land fraud, land administration, indefeasibility of title, Torrens system
References
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Ainul Jaria Maidin, Azlinor Suffian, Fauziah Md Noor, Nor Asiah Mohamed & Sharifah Zubaidah Syed Abdul Kader (2022). Evolution of peninsular Malaysian land law. Dlm. Diana Chai, Principles of Malaysian Land Law (ed. ke-2). LexisNexis.
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Asari @ Asha' Ari Mohd Amin lwn Zainalabidin bin Mohamed Husain [2012] MLJU 227.
Bayangan Sepadu Sdn Bhd lwn Jabatan Pengairan dan Saliran Negeri Selangor & Ors [2022] 2 CLJ 1
Damai Park Resort Sdn Bhd lwn Celvest Credit Sdn Bhd & Ors [2010] 1 LNS 1139.
Datuk Jaginder Singh lwn Tara Rajaratnam [1983] 2 MLJ 196.
Derry lwn Peek (1889) 14 App Cas 337.
Grace Xavier. (2011, 19-20 November). Indefeasibility of title in Malaysia - The revivification of deferred indefeasibility under the Torrens system – Focus on fraudulently obtained and forges titles. The 6th UUM International Legal Conference 2011 Proceedings: ‘Facing The Contemporary Global Legal Challenges. Hotel Bayview Beach Resort, Penang..
Jamaliah Haji Mahsudi (Suing on Her Behalf and as Administratrix of the Estate of Salamah Bte Hj Ali) & Ors lwn Sivam a/l Munsamy & Anor [1995] 5 MLJ 250.
Joshua Kevin Sathiaseelan. (2006). Prinsip-prinsip penting perundangan tanah di Malaysia. Lexis Nexis. Malaysian Law Journal.
Judith Sihombing. (1992). National land code, A commentary (ed. ke-2). Malaysian Law Journal.
Kamilah Wati Mohd, Adzidah Yaacob & Norsuhaida Che Musa. (2022). The challenges for fraud to land administration system in Malaysia. Dlm. E-Prosiding SAIS 2022 Seminar Antarabangsa Islam dan Sains 2022. Fakulti Perubatan dan Sains Kesihatan, Universiti Sains Islam Malaysia.
Kamilah Wati Mohd. (2021). Kepentingan tadbir urus yang baik dalam mendepani isu penipuan tanah. Dlm. E-Prosiding Seminar Antarabangsa Islam dan Sains 2021 (SAIS 2021). Universiti Sains Islam Malaysia.
Kamilah Wati Mohd, Adzidah Yaacob & Norsuhaida Che Musa. (2023). Resolving competing claims between original owner and bona fide purchaser in land fraud cases: Should an assurance fund be the alternative solution? Dlm. E-Prosiding SAIS 2023 Seminar Antarabangsa Islam dan Sains 2023. Universiti Sains Islam Malaysia.
Kamilah Wati Mohd & Sharifah Zubaidah Syed Abdul Kader. (2016). Overview of the compensation scheme under the Torrens system: An analysis for adoption in Peninsular Malaysia. Journal of Asian and African Social Science and Humanities, 2(3), 1-11.
Kamus undang-undang bahasa Inggeris-bahasa Melayu Oxford Fajar. (2007). Oxford Fajar Sdn Bhd.
Khong Yoke Bee lwn Lim Chong Yean & Another Appeal [2018] 3 CLJ 89.
Loke Yew lwn Port Swettenham Rubber Co Ltd [ 1913] AC 491.
Malaysia Building Society Bhd lwn KCSB Konsortium Sdn Bhd [2017] 4 CLJ 24.
Md Said @ Mohd Zaid Abdullah & Ismail Omar. (2012). Pembangunan tanah & halangannya (ed. pertama). Penerbit UTM Press.
Mohd Ridzuan Awang. (2002). Perbandingan antara Undang-undang Tanah Islam dan Kanun Tanah Negara 1965, Isu syariah dan undang-undang, siyasah dan perundangan, Siri 10, Universiti Kebangsaan Malaysia.
Mohd Salim Said & Ors lwn Tang Pheng Kee & Anor and Another Appeal [2014] 6 CLJ 485.
Mohd Shukri Ismail. (2008). Cadangan memperkenalkan dana asurans di bawah prinsip insurans sistem Torrens sebagai langkah perlindungan kuantitatif kepada mangsa pemalsuan dan penipuan hak milik tanah, mesyuarat Pengarah Tanah Malaysia Bil.1/2008, JKPTG.
Mohd Shukri Ismail. (2011). Measures undertaken to safeguard against fraud in land dealings. Jurnal Pentadbiran Tanah, 1(1), 8-99.
Muhammad Hafiz Shaari. (2009). Fraud dalam urusan pendaftaran hak milik: Kajian di Pejabat Pendaftar Hak milik Negeri Selangor, Shah Alam [Tesis sarjana yang tidak diterbitkan].Universiti Teknologi Malaysia.
Noraida Harun. (2012). Frod dalam urus niaga tanah: Satu kajian perbandingan dengan undang-undang tanah Australia. UUM Journal of Legal Studies, 3, 111-143.
Noraida Harun, Jady Hassim & Noor ‘Ashikin Hamid. (2013). Penipuan, rasuah dan pencurian maklumat dalam urus niaga tanah: Cabaran dan penyelesaian. Kanun: Jurnal undang-undang Malaysia, 25(2), 159-184.
Noraida Harun, Nazli Ismail @ Nawang & Jady @ Zaidi Hassim. (2015). Land scams involving the power of attorney in land dealings in Malaysia. Pertanika Journal of Social Sciences & Humanities, 23(S), 97-106.
Noraida Harun. (2015). Pembeli bona fide dalam penipuan tanah: Isu dan cabaran. UUM Journal of Legal Studies, 6, 100-117.
Noraida Harun & Jady Hassim. (2015). Fraud berkaitan dengan kepentingan yang tidak berdaftar: Satu analisis. Kanun: Jurnal Undang-undang Malaysia, 27(2), 271-296.
Noraida Harun, Asiah Bidin, Noor ‘Ashikin Hamid, Kamaliah Salleh & Nazli Ismail @ Nawang. (2019). Isu keselamatan sistem pendaftaran tanah berkomputer di Malaysia: Satu Tinjauan. Kanun: Jurnal Undang-undang Malaysia, 31(2), 238-250.
Noraida Harun, Asiah Bidin, Noor ‘Ashikin Hamid & Kamaliah Salleh. (2021), The proviso to Section 340(3) of the NLC: A study. Psychology and Education, 28(2), 1653-1657.
Noraida Harun, Noor ‘Ashikin Hamid, Asiah Bidin & Kamaliah Salleh. (2022). Penipuan dalam urus niaga tanah di Malaysia: Satu kajian. Kanun: Jurnal Undang-undang Malaysia, 34(1), 97-112. https//doi.org/10.37052/kanun.34(1)no5
Noraziah Abu Bakar. (2022, 23–24 Mac). Risiko rasuah dalam transaksi hartanah: Tinjauan dari perspektif awam dan swasta. Persidangan Penyelidikan anjuran Governans, Integriti dan Antirasuah Peringkat Kebangsaan (GIACC): Mendepani Cabaran Isu Governans, Integriti dan Antirasuah di Malaysia. Movenpick Hotel & Convention Centre, Sepang, Selangor.
Pujaan Pertama Sdn Bhd lwn Yap Lee Chuan & Ors [2023] 2 CLJ 442.
R Thangaratnam d/o Vythilingam lwn Vinayagamoorthy a/l Rajaratnam & Ors [2008] 3 MLJ 61
Rabiatul Adawiyah Koh Abdullah. (2022, 25 Mac). Risiko rasuah dalam transaksi hartanah. Bebasnews. https://bebasnews.my/2022/03/25/risiko-rasuah-dalam-transaksi-hartanah/Real Propert Act 1900 (NSW)
Rongxin Zeng. (2013). Review of American notary system-new developments, challenges and its coping strategy. Journal of Politics and Law, 6(4), 121-128.
Roushi Low. (2005). Maintaining the integrity of the Torrens system in a digital environment: A comparative overview of the safeguards used within the electronic land systems in Canada, New Zealand, United Kingdom and Singapore. Australian Property Journal, 11(2), 155-178.
Roziana Omar. (2011). Keberkesanan doktrin hak milik tak boleh sangkal dalam menangani kes-kes pemalsuan dan penipuan tanah [Tesis sarjana yang tidak diterbitkan]. Universiti Kebangsaan Malaysia.
Sakina Shaik Ahmad Yusoff & Azimon Abdul Aziz. (2003). Mengenali undang-undang kontrak Malaysia (ed. pertama). International Law Book Services.
Salehuddin Saidin & Amalina Abdul Rashid. (2008, 22-23 Oktober). Hak milik tak boleh sangkal: Isu berkaitan interpretasi kepada Seksyen 340, Kanun Tanah Negara 1965: Sama ada ia hak milik tak boleh segera atau hak milik tak boleh sangkal tertunda-penilaian terhadap kes Boonsom Boonyanit. Seminar Reduction in Land Fraud. Hotel Grand Blue Wave, Shah Alam, Selangor.
Salleh Buang. (1993). Undang-undang tanah di Malaysia (ed. pertama). Dewan Bahasa dan Pustaka.
See Leong & Anor lwn United Overseas Bank (Malaysia) Bhd & Another Appeal [2021] 6 CLJ 650.
Shahrul Natasha Halid & Jady Hassim. (2021). Acomparative analysis of assurance fund vid a vis title insurance: Which offers better compensation for victims of land disputes in Malaysia? Pacific Rim Property Journal, 27, 107-126.
Sharifah Zubaidah Syed Abdul Kader. (2008, 22–23 Oktober). Disclosing the types of land fraud under Malaysian Law. Seminart Reduction in Land Fraud. Hotel Grand Blue Wave, Shah Alam, Selangor.
Siti Radiaton Adawiyah Zakaria & Khadijah Hussin. (2013). Recognition of the economic security in the form of assurance funds as a protection to landowners and the economic stimulator in Malaysia. China-US Business Review, 12(8), 768-774.
SK Dass. (1963). The Torrens systems in Malaya. Malayan Law Journal.
Syarifah Suhana Syed Hamid, Mohd Bukhari Abdul Hamid & Nor Cahaya Md Taib. (1996). Dlm. Visu Sinnadurai, Jual beli harta tanah di Malaysia (ed. pertama). Dewan Bahasa dan Pustaka.
Syed Ahmad Alsagoff. (2010). Principles of the law of contract in Malaysia (ed. ke-3). LexisNexis Malaysia.
Tan Tock Kwee & Anor lwn Tey Siew Cha & Anor [1995] 4 CLJ 659.
Tan Ying Hong lwn Tan Sian San [2010] 2 CLJ 269.
Tara Rajaratnam lwn Datuk Jaginder Singh [1983] 2 MLJ 127.
Teo, K. S. (1997). Deferred indefeasibility of title and interests. Singapore Journal of International & Comparative Law, 1, 140-153.
The duties of commissioners or declarations. (ed. ke-4). (2007). 7–18, www.justice.qld.gov.au/jps
Visu Sinnadurai. (1996). Jual beli harta tanah di Malaysia (ed. pertama). Dewan Bahasa dan Pustaka.
Yusri Zakariah, Salfarina Samsudin & Norshafadila Ngadiman. (2020). An overview of the fraud and forgery challenges in land registration system. European Journal of Molecular & Clinical Medicine, 7(3). 274-282.
Ainul Jaria Maidin, Azlinor Suffian, Fauziah Md Noor, Nor Asiah Mohamed & Sharifah Zubaidah Syed Abdul Kader (2022). Evolution of peninsular Malaysian land law. Dlm. Diana Chai, Principles of Malaysian Land Law (ed. ke-2). LexisNexis.
Andrew Wong Fook Hin. (2011). Recent Federal Court’s Decision on Section 340 of the National Land Code: Tan Ying Hong lwn Tan Sian San & Ors - Are landowners and banks secured? Praxis chronicle the Malaysian Bar. Lexisnexis Malaysia Sdn Bhd. www.malaysianbar.org.my
Anesh Ganason, (t.t). Pindaan Kanun Tanah Negara 1965: Hala tuju Kanun Tanah Negara & sistem pentadbiran tanah masa hadapan. www. nre.gov.my
Asari @ Asha' Ari Mohd Amin lwn Zainalabidin bin Mohamed Husain [2012] MLJU 227.
Bayangan Sepadu Sdn Bhd lwn Jabatan Pengairan dan Saliran Negeri Selangor & Ors [2022] 2 CLJ 1
Damai Park Resort Sdn Bhd lwn Celvest Credit Sdn Bhd & Ors [2010] 1 LNS 1139.
Datuk Jaginder Singh lwn Tara Rajaratnam [1983] 2 MLJ 196.
Derry lwn Peek (1889) 14 App Cas 337.
Grace Xavier. (2011, 19-20 November). Indefeasibility of title in Malaysia - The revivification of deferred indefeasibility under the Torrens system – Focus on fraudulently obtained and forges titles. The 6th UUM International Legal Conference 2011 Proceedings: ‘Facing The Contemporary Global Legal Challenges. Hotel Bayview Beach Resort, Penang..
Jamaliah Haji Mahsudi (Suing on Her Behalf and as Administratrix of the Estate of Salamah Bte Hj Ali) & Ors lwn Sivam a/l Munsamy & Anor [1995] 5 MLJ 250.
Joshua Kevin Sathiaseelan. (2006). Prinsip-prinsip penting perundangan tanah di Malaysia. Lexis Nexis. Malaysian Law Journal.
Judith Sihombing. (1992). National land code, A commentary (ed. ke-2). Malaysian Law Journal.
Kamilah Wati Mohd, Adzidah Yaacob & Norsuhaida Che Musa. (2022). The challenges for fraud to land administration system in Malaysia. Dlm. E-Prosiding SAIS 2022 Seminar Antarabangsa Islam dan Sains 2022. Fakulti Perubatan dan Sains Kesihatan, Universiti Sains Islam Malaysia.
Kamilah Wati Mohd. (2021). Kepentingan tadbir urus yang baik dalam mendepani isu penipuan tanah. Dlm. E-Prosiding Seminar Antarabangsa Islam dan Sains 2021 (SAIS 2021). Universiti Sains Islam Malaysia.
Kamilah Wati Mohd, Adzidah Yaacob & Norsuhaida Che Musa. (2023). Resolving competing claims between original owner and bona fide purchaser in land fraud cases: Should an assurance fund be the alternative solution? Dlm. E-Prosiding SAIS 2023 Seminar Antarabangsa Islam dan Sains 2023. Universiti Sains Islam Malaysia.
Kamilah Wati Mohd & Sharifah Zubaidah Syed Abdul Kader. (2016). Overview of the compensation scheme under the Torrens system: An analysis for adoption in Peninsular Malaysia. Journal of Asian and African Social Science and Humanities, 2(3), 1-11.
Kamus undang-undang bahasa Inggeris-bahasa Melayu Oxford Fajar. (2007). Oxford Fajar Sdn Bhd.
Khong Yoke Bee lwn Lim Chong Yean & Another Appeal [2018] 3 CLJ 89.
Loke Yew lwn Port Swettenham Rubber Co Ltd [ 1913] AC 491.
Malaysia Building Society Bhd lwn KCSB Konsortium Sdn Bhd [2017] 4 CLJ 24.
Md Said @ Mohd Zaid Abdullah & Ismail Omar. (2012). Pembangunan tanah & halangannya (ed. pertama). Penerbit UTM Press.
Mohd Ridzuan Awang. (2002). Perbandingan antara Undang-undang Tanah Islam dan Kanun Tanah Negara 1965, Isu syariah dan undang-undang, siyasah dan perundangan, Siri 10, Universiti Kebangsaan Malaysia.
Mohd Salim Said & Ors lwn Tang Pheng Kee & Anor and Another Appeal [2014] 6 CLJ 485.
Mohd Shukri Ismail. (2008). Cadangan memperkenalkan dana asurans di bawah prinsip insurans sistem Torrens sebagai langkah perlindungan kuantitatif kepada mangsa pemalsuan dan penipuan hak milik tanah, mesyuarat Pengarah Tanah Malaysia Bil.1/2008, JKPTG.
Mohd Shukri Ismail. (2011). Measures undertaken to safeguard against fraud in land dealings. Jurnal Pentadbiran Tanah, 1(1), 8-99.
Muhammad Hafiz Shaari. (2009). Fraud dalam urusan pendaftaran hak milik: Kajian di Pejabat Pendaftar Hak milik Negeri Selangor, Shah Alam [Tesis sarjana yang tidak diterbitkan].Universiti Teknologi Malaysia.
Noraida Harun. (2012). Frod dalam urus niaga tanah: Satu kajian perbandingan dengan undang-undang tanah Australia. UUM Journal of Legal Studies, 3, 111-143.
Noraida Harun, Jady Hassim & Noor ‘Ashikin Hamid. (2013). Penipuan, rasuah dan pencurian maklumat dalam urus niaga tanah: Cabaran dan penyelesaian. Kanun: Jurnal undang-undang Malaysia, 25(2), 159-184.
Noraida Harun, Nazli Ismail @ Nawang & Jady @ Zaidi Hassim. (2015). Land scams involving the power of attorney in land dealings in Malaysia. Pertanika Journal of Social Sciences & Humanities, 23(S), 97-106.
Noraida Harun. (2015). Pembeli bona fide dalam penipuan tanah: Isu dan cabaran. UUM Journal of Legal Studies, 6, 100-117.
Noraida Harun & Jady Hassim. (2015). Fraud berkaitan dengan kepentingan yang tidak berdaftar: Satu analisis. Kanun: Jurnal Undang-undang Malaysia, 27(2), 271-296.
Noraida Harun, Asiah Bidin, Noor ‘Ashikin Hamid, Kamaliah Salleh & Nazli Ismail @ Nawang. (2019). Isu keselamatan sistem pendaftaran tanah berkomputer di Malaysia: Satu Tinjauan. Kanun: Jurnal Undang-undang Malaysia, 31(2), 238-250.
Noraida Harun, Asiah Bidin, Noor ‘Ashikin Hamid & Kamaliah Salleh. (2021), The proviso to Section 340(3) of the NLC: A study. Psychology and Education, 28(2), 1653-1657.
Noraida Harun, Noor ‘Ashikin Hamid, Asiah Bidin & Kamaliah Salleh. (2022). Penipuan dalam urus niaga tanah di Malaysia: Satu kajian. Kanun: Jurnal Undang-undang Malaysia, 34(1), 97-112. https//doi.org/10.37052/kanun.34(1)no5
Noraziah Abu Bakar. (2022, 23–24 Mac). Risiko rasuah dalam transaksi hartanah: Tinjauan dari perspektif awam dan swasta. Persidangan Penyelidikan anjuran Governans, Integriti dan Antirasuah Peringkat Kebangsaan (GIACC): Mendepani Cabaran Isu Governans, Integriti dan Antirasuah di Malaysia. Movenpick Hotel & Convention Centre, Sepang, Selangor.
Pujaan Pertama Sdn Bhd lwn Yap Lee Chuan & Ors [2023] 2 CLJ 442.
R Thangaratnam d/o Vythilingam lwn Vinayagamoorthy a/l Rajaratnam & Ors [2008] 3 MLJ 61
Rabiatul Adawiyah Koh Abdullah. (2022, 25 Mac). Risiko rasuah dalam transaksi hartanah. Bebasnews. https://bebasnews.my/2022/03/25/risiko-rasuah-dalam-transaksi-hartanah/Real Propert Act 1900 (NSW)
Rongxin Zeng. (2013). Review of American notary system-new developments, challenges and its coping strategy. Journal of Politics and Law, 6(4), 121-128.
Roushi Low. (2005). Maintaining the integrity of the Torrens system in a digital environment: A comparative overview of the safeguards used within the electronic land systems in Canada, New Zealand, United Kingdom and Singapore. Australian Property Journal, 11(2), 155-178.
Roziana Omar. (2011). Keberkesanan doktrin hak milik tak boleh sangkal dalam menangani kes-kes pemalsuan dan penipuan tanah [Tesis sarjana yang tidak diterbitkan]. Universiti Kebangsaan Malaysia.
Sakina Shaik Ahmad Yusoff & Azimon Abdul Aziz. (2003). Mengenali undang-undang kontrak Malaysia (ed. pertama). International Law Book Services.
Salehuddin Saidin & Amalina Abdul Rashid. (2008, 22-23 Oktober). Hak milik tak boleh sangkal: Isu berkaitan interpretasi kepada Seksyen 340, Kanun Tanah Negara 1965: Sama ada ia hak milik tak boleh segera atau hak milik tak boleh sangkal tertunda-penilaian terhadap kes Boonsom Boonyanit. Seminar Reduction in Land Fraud. Hotel Grand Blue Wave, Shah Alam, Selangor.
Salleh Buang. (1993). Undang-undang tanah di Malaysia (ed. pertama). Dewan Bahasa dan Pustaka.
See Leong & Anor lwn United Overseas Bank (Malaysia) Bhd & Another Appeal [2021] 6 CLJ 650.
Shahrul Natasha Halid & Jady Hassim. (2021). Acomparative analysis of assurance fund vid a vis title insurance: Which offers better compensation for victims of land disputes in Malaysia? Pacific Rim Property Journal, 27, 107-126.
Sharifah Zubaidah Syed Abdul Kader. (2008, 22–23 Oktober). Disclosing the types of land fraud under Malaysian Law. Seminart Reduction in Land Fraud. Hotel Grand Blue Wave, Shah Alam, Selangor.
Siti Radiaton Adawiyah Zakaria & Khadijah Hussin. (2013). Recognition of the economic security in the form of assurance funds as a protection to landowners and the economic stimulator in Malaysia. China-US Business Review, 12(8), 768-774.
SK Dass. (1963). The Torrens systems in Malaya. Malayan Law Journal.
Syarifah Suhana Syed Hamid, Mohd Bukhari Abdul Hamid & Nor Cahaya Md Taib. (1996). Dlm. Visu Sinnadurai, Jual beli harta tanah di Malaysia (ed. pertama). Dewan Bahasa dan Pustaka.
Syed Ahmad Alsagoff. (2010). Principles of the law of contract in Malaysia (ed. ke-3). LexisNexis Malaysia.
Tan Tock Kwee & Anor lwn Tey Siew Cha & Anor [1995] 4 CLJ 659.
Tan Ying Hong lwn Tan Sian San [2010] 2 CLJ 269.
Tara Rajaratnam lwn Datuk Jaginder Singh [1983] 2 MLJ 127.
Teo, K. S. (1997). Deferred indefeasibility of title and interests. Singapore Journal of International & Comparative Law, 1, 140-153.
The duties of commissioners or declarations. (ed. ke-4). (2007). 7–18, www.justice.qld.gov.au/jps
Visu Sinnadurai. (1996). Jual beli harta tanah di Malaysia (ed. pertama). Dewan Bahasa dan Pustaka.
Yusri Zakariah, Salfarina Samsudin & Norshafadila Ngadiman. (2020). An overview of the fraud and forgery challenges in land registration system. European Journal of Molecular & Clinical Medicine, 7(3). 274-282.
Published
2024-07-19
How to Cite
HARUN, NORAIDA; HAMID, Noor 'Ashikin; GHAPA, Norhasliza.
Loopholes in Law Relating to Land Fraud in Malaysia.
Kanun: Jurnal Undang-undang Malaysia, [S.l.], v. 36, n. 2, p. 213-242, july 2024.
ISSN 2682-8057.
Available at: <https://jurnal.dbp.my/index.php/Kanun/article/view/8879>. Date accessed: 21 dec. 2024.
doi: https://doi.org/10.37052/kanun.36(2)no3.
Section
Articles
