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Govt prevails in Duta Enclave land dispute, but must pay compensation
The Court of Appeal has allowed the federal government to retain the disputed 106.542ha of land in Mukim Batu, Kuala Lumpur, known as the Duta Enclave.
Ruling that Semantan Estate Sdn Bhd is not entitled to the land title, the appellate court also dismissed the company’s appeal to acquire the land and its buildings.
Summary
The Court of Appeal rules the federal government can retain the Duta Enclave land in Kuala Lumpur.
The court finds Semantan Estate has no entitlement to the land title and dismisses its appeal.
However, the government is ordered to pay compensation based on 1956 market value with 6 percent annual interest until the payment completion.
The Court of Appeal has allowed the federal government to retain the disputed 106.542ha of land in Mukim Batu, Kuala Lumpur, known as the Duta Enclave.
Ruling that Semantan Estate Sdn Bhd is not entitled to the land title, the appellate court also dismissed the company’s appeal to acquire the land and its buildings.
As such, the Federal Territory of Kuala Lumpur Land Registrar succeeded in its bid to overturn the High Court’s ruling ordering it to transfer the land title to Semantan Estate.
A three-member bench led by Federal Court judge Lee Swee Seng delivered the unanimous decision today.
No order to execute
According to Bernama, Lee ruled that the 2009 High Court decision did not order the government to transfer the land back to Semantan Estate.
“There was no order to execute. In the absence of an order for the transfer of the land back to Semantan Estate, an order for declaration cannot be executed, as it is only declarative of the rights of parties,” the judge said.
He added that a declaratory order merely affirms the legal rights of parties involved and it does not carry the power of enforcement, such as specific performance, noting that such orders are non-executable by nature.
Compensation at 6pct interest
However, Lee, who sat with Court of Appeal judges Azimah Omar and Wan Ahmad Farid Wan Salleh, also ordered that the government pay compensation as assessed by the High Court based on the 1956 market rate.
Lee also directed parties to file their expert valuation report on the market value of the subject land as of Dec 3, 1956, within 90 days from today.
The judge added that two payments made by the government - RM1.321 million on Dec 21, 1956, and another RM79,241 on Feb 3, 1959 - would be deducted from the amount of compensation to be assessed.
He also awarded interest of six percent per annum to the company from Dec 3, 1956 to the date of payment upon payment of the compensation as assessed.
The disputed land, located in the prime Jalan Duta area, houses government buildings including the national hockey stadium, the Malaysian Institute of Integrity, national archives, the Kuala Lumpur Syariah Court, the Inland Revenue Board and the MACC Academy.
Decades long battle
Semantan Estate's legal battle began in 2003 when it sued the government, claiming the land was unlawfully acquired in 1956.
In 2009, judicial commissioner Zura Yahya ruled in favour of Semantan Estate that the government had unlawfully acquired the land. The government’s subsequent appeals at the Court of Appeal and Federal Court were unsuccessful.
In February 2017, Semantan Estate initiated a lawsuit against the Kuala Lumpur Land Registrar to enforce the 2009 High Court judgment.
On Aug 7 last year, High Court judge Ahmad Shahrir Salleh ordered the government to transfer the land to Semantan Estate after allowing the company’s originating summons against the Federal Territory of Kuala Lumpur Land Registrar.
The judge ruled that due to a botched acquisition, the government was and is still in unlawful occupation of the land.
He emphasised that his ruling was made because the court must uphold and accord the fundamental rights entrenched in the Federal Constitution their rightful status without sanctimony.
He later granted a stay of his order requiring the government to transfer the land to the company pending the disposal of the government’s appeal at the Court of Appeal.
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