Appeals court to determine Duta Enclave's compensation value

How much compensation could Semantan Estate (1952) Sdn Bhd receive from the government over a pre-Merdeka ownership dispute of the Duta Enclave?

This is the issue that the Court of Appeal has directed legal teams for Semantan and the government to prepare for submissions in an appeal over the 107ha land, one of the longest-running civil land disputes in the country.

Today was the hearing of the government's appeal to hold on to the land.

It was previously reported that both opposing sides were negotiating over a potential out-of-court settlement into the protracted dispute linked to the government's acquisition of the land from Semantan in 1956.

However, parties were deadlocked over what potential amount the government needed to fork over to Semantan if the government continued to hold on to the land around Jalan Tuanku Abdul Halim, formerly known as Jalan Duta.

The Duta Enclave includes part of the Federal Territory Mosque, the Jalan Duta Government Complex, the Jalan Duta Hockey Stadium, and the Malaysian Institute of Integrity.

Three issues

During the hearing, the three-person bench chaired by judge Lee Swee Seng directed parties to prepare submissions on three issues.

One of the issues is whether potential compensation should be calculated from the date the land commissioner took possession of the area in 1956, or whether it should be from the current date.

Another issue is whether the appellate court has the power to remit the matter to the High Court to assess the amount of compensation.

The government's legal representative, senior federal counsel Ahmad Hanir Hambaly @ Arwi, told the court parties are still negotiating while pursuing the court action.

RM5b compensation offer

The Duta Enclave issue arose during a parliamentary sitting on Oct 29, when Kota Bharu MP Takiyuddin Hassan made a supplementary question about the previous government's offer of a RM5 billion compensation to resolve the issue.

Prime Minister Anwar Ibrahim, during Minister's Question Time, replied that such a decision would not resolve the problem, and would open the door to other land issues.

“We must be firm. So far, not an inch of the Duta Enclave land is being developed for private or commercial purposes; everything is for government buildings,” he said, stressing that this issue involves not only legal technicalities but also the principles of national development and public interest.

Anwar also said the government plans to amend the Land Acquisition Act 1960 (Act 486) to ensure national assets and public interest are protected.

“The Attorney-General's Chambers is working to tighten the law, (because) public interest cannot be compromised.

“If we compromise on this matter, all land, especially Malay-owned land in urban areas, will be at risk," Anwar said.

Feb 20 next hearing

Semantan's counsel Cyrus Das confirmed the ongoing talks between disputants.

As the proceedings went on, a Semantan representative informed Das that the government proposed RM5 billion for the land but the market rate was RM12 billion.

The brief exchange hinted at the sticking point between disputants over how much compensation should be paid to resolve the court action.

The appellate court hearing will resume on Feb 20 next year for parties to submit on the issues laid out by the appeals bench, which also comprised judges Azimah Omar and Wan Ahmad Farid Wan Salleh.

One other issue that parties would argue next year is whether Section 29 (1)(b) of the Government Proceedings Act 1956 and Section 8 of the Specific Relief Act 1950 are unconstitutional and violate the fundamental property right.

Section 29(1)(b) states that in any proceedings against the government for the recovery of land, the court shall not make an order for the recovery of the land, but may in lieu thereof make an order declaring the plaintiff is entitled to the land.

Section 8(3) states that no suit shall be brought against any government in Malaysia in a situation where a person is dispossessed without his or her consent of immovable property.

The government's appeal targets a Kuala Lumpur High Court order issued on Aug 7 for vacant possession of the land. However, there is a stay of execution over this pending disposal of the appeal.

The High Court ruling is pursuant to Semantan's bid to enforce an earlier 2009 court verdict that declared it has a beneficial interest in the land.

Who is Semantan?

Semantan was founded by Eng Lian Group and Ng Chin Siu & Sons Rubber Estates - the vehicles of two prominent land-owning families.

Eng Lian Group is known as the developer of Bangsar in the 1970s. They also developed the Bangsar Village shopping centre.

Ng Chin Siu & Sons, on the other hand, is not involved in recent development projects. However, they are known for the development of Desa Hartamas and Mont Kiara, Kuala Lumpur.

The government acquired the land in 1956 for RM1.32 million under the then-Land Acquisition Enactment to develop a diplomatic quarter. However, in 2009, the High Court ruled that the government had trespassed on the land.

Besides the present action to enforce Semantan ownership claim, the company and the government are embroiled in other legal actions over the land.

One is Semantan's court action for a mandamus to compel the government to hand over Duta Enclave.

The Kuala Lumpur High Court dismissed the mandamus bid in October 2021. Semantan also has a pending appeal before the Court of Appeal over this matter.

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