Breaking a "law" set in place by the players (such as building a base without permission from the "governement") can get you in trouble in-RP, and you will be subject to things like getting fined or blown up, if you're caught. From an OoRP perspective, it's okay to break laws.
Breaking a server rule gets you sanctioned and/or banned. Server rules should be understood and followed at all times on the server. It's not okay to break them. However, this Molly base had nothing to do with server rules. When this person told you that the base was illegal, he was speaking in-character, and informing you that you had built your base outside of Bretonian law.
First I'd like to say thanks for your imput.
I fully understand what you have written but still don't understand as to why I've had my account banned.
The base was built and destroyed according to server rules as far as I can see...
Can some one please explain why I've been banned from the server.
If so is there a way that I can appeal and get my account re-activated.
I'm a long turn server member and would really like to return.
If I have broken any server rules I'm truely sorry ....
I doubt that the base had anything to do with you being banned. It's probably a mistake; people get banned for no reason from time to time by the anti-cheat software.
If you post in the topic I linked, someone should be along to help you with that eventually.