PUTRAJAYA: The Court of Appeal has directed parties in the dispute involving 106ha (263.272 acres) of land known as the Duta Enclave to submit regarding compensation, expected to run into the billions, that should be paid to the aggrieved party.
A three-member panel chaired by Court of Appeal judge Justice Lee Swee Seng gave the instruction on Thursday (Nov 7) after hearing lengthy submissions from lawyers representing Semantan Estate (1952) Sdn Bhd and senior federal counsels representing the Federal Territory of Kuala Lumpur Land Registrar.
Others on the bench were Court of Appeal judge Justice Azimah Omar and High Court judge Justice Wan Ahmad Farid Wan Salleh.
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The panel asked the parties to submit whether the calculation of the compensation should be based on the current market value or from the time the land was acquired, which was 1956.
As the matter of compensation was raised in open court, a man who sat at the public gallery, believed to be a representative from the Semantan Estate liquidator, told the court that the current market price for the land was RM12bil.
"The government proposed RM5bil (in compensation) but the current market value is RM12bil," he said.
The appellate court then fixed Feb 20 for the continued hearing of the appeal.
Before adjourning the matter, Justice Lee told parties that negotiations were the way forward.
"That is the best, really," he said.
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In Thursday's proceedings, the panel heard submissions on an appeal by the government against the decision by the Kuala Lumpur High Court that allowed an originating summons by Semantan Estate against the Land Registrar.
On Aug 7, Justice Ahmad Shahrir Mohd Salleh ordered the government to transfer the land to Semantan Estate after allowing the company’s originating summons.
The court also ordered the Land Registrar to fulfil the required conditions within three months and instructed the government to pay RM50,000 in costs.
The same court, however, also allowed a stay of execution on the transfer of ownership on Sept 12, pending an appeal filed by the government.
Meanwhile, Semantan Estate was appealing a decision by the Kuala Lumpur High Court on Oct 27, 2021, that dismissed its judicial review in a bid to gain possession of the Duta Enclave land.
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The company was also appealing for the transfer of ownership to be enforced, as per the directions of the High Court.
Lawyer Datuk Cyrus Dass appeared for Semantan Estate while Senior Federal Counsels Shamsul Bolhassan, Liew Horng Bin and Ahmad Hanir Hambaly appeared for the government.
In 2003, Semantan Estate filed a lawsuit against the government, alleging encroachment due to illegal acquisition of the land.
In 2009, judicial commissioner Zura Yahya ruled that Semantan Estate had retained its beneficial interest in the 106ha of land, declaring the government’s action as trespass.
The government subsequently filed an appeal but was struck out on May 18, 2012. The Federal Court denied the government’s application for leave to appeal on Nov 21, 2012, and again dismissed the review of the previous decision in 2018.
In February 2017, Semantan Estate initiated a lawsuit against the Federal Territory Land Registrar to enforce the 2009 High Court judgment.
