No settlement, so hearing of appeals by Semantan Estate and govt to proceed tomorrow

Feb 19, 2025

No settlement, so hearing of appeals by Semantan Estate and govt to proceed tomorrow

At the last Nov 7 sitting, Court of Appeal judge Datuk Lee Swee Seng had asked both parties to look into settling the long dispute, and, should there be none, the hearing is to proceed on Feb 20 and 21.
PUTRAJAYA (Feb 19): As there is no settlement in sight for the multibillion half-century dispute of 263.272 acres of prime land in Kuala Lumpur called the “Duta enclave”, appeals by Semantan Estate (1952) Sdn Bhd and the cross-appeal by the Federal Territory Land Registrar and the federal government will proceed for two days at the Court of Appeal on Thursday and Friday (Feb 20 and 21).

Lee sits with judges Datuk Azimah Omar and Datuk Wan Ahmad Farid Wan Salleh in the hearing of the appeals.

Semantan Estate’s lead counsel Datuk Dr Cyrus Das, and the company’s liquidator Dr Jim Lai Chee Chuen, when contacted separately by The Edge, confirmed that there was no settlement, and following that, the scheduled hearing will proceed on Thursday and Friday.

The bench had asked parties to submit on three further issues based on the question of law formulated, namely:

Whether Section 29(1)(b) of the Government Proceedings Act 1956 (GPA) and Section 8(3) of the Specific Relief Act (SRA) 1950 prohibit the court from granting the mandamus order (to compel the government to return the land) and the Section 417 of the National Land Code (NLC) order to give possession to Semantan Estate pursuant to the Aug 7, 2024 High Court order, and whether these two provisions — Section 29(1) and Section 8(3) — are unconstitutional, as being ultra vires (beyond the powers of) Article 13 (Rights to Property) of the Federal Constitution;
Whether, in lieu of an order for transfer of the title to Semantan Estate and delivery of possession, the Court of Appeal may order compensation with the directive that the evaluation that the compensation be based on is at the current market value of the land, or whether the compensation ordered should be at the date of the possession taken by the commissioner of land; and
Whether the Court of Appeal has the jurisdiction to remit this case to the High Court with directions to make full assessment of damages for compensation under the Rules of Court or an appeal under Section 417 of the NLC.
Section 29(1)(b) of the GPA stipulates that in any proceeding against the government for the recovery of land or other property, the court shall not make an order for the recovery of the land or the delivery of the property, but may, in lieu thereof, make an order declaring that the plaintiff is entitled, as against the government, to the land or property or to the possession thereof.

Section 8 of the SRA stipulates that if any person is dispossessed without his consent of immovable property otherwise than in due course of law, he or any person claiming through him may, by suit, recover possession thereof, notwithstanding any other title that may be set up in the suit, but Subsection 3 stipulates no proceeding can be done on the government.

Monetary compensation, or should it also include physical handover?

The government and registrar are appealing against the order made by High Court judge Datuk Ahmad Shahrir Mohd Salleh last August, that the registrar transfer ownership of the Duta enclave land, free of any encumbrances, from the government to Semantan Estate within three months.

However, on Sept 12, Ahmad Shahrir granted a stay of the execution of his order, pending an appeal by the government.

In their appeal, the government and registrar are arguing the company is only entitled to monetary compensation based on the GPA and SRA and not physical ownership of the title.

Semantan Estate, on the other hand, is appealing against another High Court decision in 2021 by judge Datuk Ahmad Kamal Md Shahid (now a Court of Appeal judge), in not granting it a mandamus order to compel the government to revert possession of the land back to the company, despite the High Court, Court of Appeal, and Federal Court’s ruling that the government had trespassed on the land.

Cyrus submitted in November that the High Court’s ruling, in not abiding by the earlier decisions solely because government buildings have been erected on the land, was in breach of natural justice and that the court of appeal should allow Semantan Estate’s appeals.

At stake are the various government buildings worth billions of ringgit that now sit on the prime land that was originally designated for embassies — hence the name “Duta enclave” or diplomatic enclave.

The present government buildings on the land include the Inland Revenue Board headquarters, as well as the National Examinations Syndicate, Shariah Court Complex, the Federal Territory Mosque, the National Archives, and the Tun Razak Hockey Stadium.

Other structures are the National Tennis Complex, Integrity Institute of Malaysia (IIM), Malaysian Anti-Corruption Academy, Institute of Islamic Understanding Malaysia (IKIM), the Duta bus terminal, and pockets of land that have yet to be developed.

There is also the main road and overhead bypass from Jalan Duta (now known as Jalan Tuanku Abdul Halim) leading to Segambut on the land.

On separate hearings for mesne profit (a sum expected to be paid by someone or the government for wrongfully occupying property of the rightful owner), the government valuation of the land is RM290 million, while Semantan Estate valued it at between RM3.1 billion and RM12 billion on calculations based on simple and compounding interests.

The previous government under Tan Sri Muhyiddin Yassin is said to have offered a compensation of RM5 billion, but the present leadership under Datuk Seri Anwar Ibrahim had rejected the sum, and hence the ongoing and long-standing pre-Merdeka dispute will likely have to be settled by the court.

EdgeProp.my is currently on the lookout for writers and contributors to join our team. Please feel free to send your CV to [email protected]

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!

Source: EdgeProp.my