Parties in Duta enclave dispute ordered to submit additional land value information

Court wants to hear about calculation of compensation and on constitutional issues regarding right to private property taken by government

7:07 PM MYT

 

PUTRAJAYA— The Court of Appeal has directed the parties involved in the legal dispute over the 106.7ha Duta enclave to submit additional information regarding the land’s value.

The submissions should address the calculation of compensation owed to Semantan Estate (1952) Sdn Bhd, should the court rule in its favour, and whether the compensation should be based on the current market value or the value at the time the land was acquired by the government.

Justice Datuk Lee Swee Seng, who led the three-judge bench, also directed the parties to address whether Section 29(1)(b) of the Government Proceedings Act 1956 and Section 8 of the Specific Relief Act 1950 — which prevents the court from issuing a mandamus order under Section 417 of the National Land Code to transfer the land to the company — are ultra vires to Article 13 of the Federal Constitution.

Another issue is the court’s jurisdiction to remit the matter to the high court for assessment of damages to be awarded to Semantan Estate.

Section 29(1)(b) of the Government Proceedings Act 1956 states that, in any civil action against the government, the court may issue rulings within its jurisdiction, except for orders requiring the return of land or property taken by the government. However, the court can still determine that the plaintiff has a right to the land or property in question.

Meanwhile, Section 8 of the Specific Relief Act 1950 of Malaysia allows a person dispossessed of their property without their consent to recover it through a lawsuit. But Subsection 3 stipulates that no action can be taken against the government.

Article 13 of the Federal Constitution protects a person’s right to property, except when authorised by law. If a law permits the deprivation of property, the person must be fairly compensated.

The panel, which included Court of Appeal judge Datuk Azimah Omar and High Court judge Datuk Wan Ahmad Farid Wan Salleh, heard submissions from Semantan’s lawyer Datuk Dr Cyrus Das, and senior federal counsels Shamsul Bolhassan, Ahmad Hanir Hambaly@Arwi and Liew Horng Bin representing the Kuala Lumpur Land Registrar.

The court has scheduled the next hearing for Feb 20, next year. 

Semantan is appealing the Oct 27, 2021, High Court decision, which dismissed its judicial review seeking to re-acquire the land.

The company is also appealing a subsequent High Court ruling granting a stay to the Land Registrar on the transfer of ownership to Semantan Estate.

Meanwhile, the government is appealing the High Court’s ruling on Aug 7, this year, that allowed Semantan Estate’s originating summons for the transfer of ownership of the land to the company.

The disputed land, located in the prime Jalan Duta area known as the “Duta enclave”, houses government buildings that include the national hockey stadium, Malaysian Institute of Integrity, national archives, Kuala Lumpur Syariah Courts, the Inland Revenue Board building and the Malaysian Anti-Corruption Commission Academy.

During today’s proceedings, a liquidator for Semantan Estate told the court that the current value of the disputed land was RM12 billion.

The legal dispute dates back to 2003 when Semantan Estate filed a lawsuit against the government, accusing it of illegally acquiring the land.

In 2009, Judicial Commissioner Zura Yahya ruled that the government had unlawfully acquired the land, and the Federal Court dismissed subsequent appeals by the government in 2012 and 2018.

Semantan Estate initiated a lawsuit against the Kuala Lumpur land registrar in February 2017 to enforce the 2009 High Court judgment, while the government proposed a resolution to the ongoing land dispute. – November 7, 2024

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