How a mistake in 1956 cost the govt 263ac of prime land

Ruling to return land significant as it houses government buildings such as LHDN and MACC Academy

10:00 PM MYT

 

KUALA LUMPUR – A mistake made in 1956 returned to haunt Putrajaya after the high court here yesterday ordered the government to return over 263ac of land in Jalan Duta to Semantan Estate (1952) Sdn Bhd.

Yesterday’s decision comes almost seven years after Semantan Estate sued the Federal Territories Land Registrar seeking the judiciary to compel Putrajaya to comply with a previous judgment they obtained in the same court in 2009.

The decision by high court judge Datuk Ahmad Shahrir Mohd Salleh can be described as a matter of national interest, especially because the subject matter of the case in question (the 263.27ac land) houses various government complexes and facilities. 

These include the Tun Razak hockey stadium, the Malaysian Institute of Integrity, the National Archives, the Kuala Lumpur shariah courts, the government complex building along Jalan Duta (the Inland Revenue Board building) and the Malaysian Anti-Corruption Commission Academy.

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The Tun Razak hockey stadium – stadium.gov.my pic, August 8, 2024

Because the high court ruled yesterday that Semantan Estate will take possession of the land, the question remains as to the fate of these government buildings – which now hangs in the balance because authorities made a mistake before Malaysia’s independence. 

Govt flouted public inquiry requirement in Semantan land acquisition

In 2003, Semantan Estate sued Putrajaya at the Kuala Lumpur High Court seeking a declaration that it had the rights to 263.27ac of land in Jalan Duta and the government had taken possession of that land wrongfully.

Judge Zura Yahya in 2009 delivered her judgment making references to matters that occurred in the 1950s, particularly a Selangor government gazette notification on July 19, 1956 announcing its intention to acquire 225ac of land held by Semantan Estate for public purposes, namely a diplomatic enclave.

This exercise was to be performed under the then Land Acquisition Enactment. 

“On November 5, 1956, a notice dated October 31, 1956 that the government intended to take possession of the 225ac under the enactment was received by the plaintiff (Semantan Estate).

“The notice stated that all persons interested in the 225ac were to appear before the land collector to state the nature of their respective interests in the land and the amount and particulars of their claims to compensation for such interests and their objections, if any, to the measurements made,” the 2009 judgment by judge Zura said.

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The Inland Revenue Board headquarters – Azim Rahman/Scoop file pic, August 8, 2024

An enquiry was held before the collector on November 27, 1956, and Semantan Estate demanded RM13,000 per ac and made known its objections. 

However, Semantan Estate was awarded less than half of what it claimed at RM5,282 per ac for 250 ac (total RM1.32 million) and the government took possession on December 3, 1956. 

“The plaintiff followed up with a letter dated December 22, 1956 informing the collector that they received the payment awarded under protest as to the sufficiency of the amount and that they would also be making an application to the collector for a reference to the court,” the judgment said. 

Later in another gazette on January 22, 1958, the Selangor government notified that it cancelled the acquisition of an area of land measuring 22ac and declared that 66ac were needed instead as an extension for the diplomatic enclave. 

The 60ac were taken without any enquiry or compensation. 

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The National Archives building – kumpulanawambina.com.my pic, August 8, 2024

Then in a letter in May 1958 from the collector to Semantan Estate’s lawyers, the government admitted that the previous enquiry on November 27, 1956 was null and the award of RM5,282 per ac was actually invalid. 

Not too long after that, on August 1 of the same year, lawyers representing Semantan Estate wrote to the attorney-general proposing to settle all procedural matters. 

It was because of this letter the government argued before the high court that Semantan Estate agreed to settle all matters and wanted to proceed with compensation. 

“Semantan Estate’s stand in this action is that the taking of possession of the 263.272ac by the defendant from the plaintiff is unlawful and wrongful since the collector in relation to the 250ac had failed to comply with the relevant sections in the enactment and for the 60ac there was in fact never any enquiry under any written law,” the judgment explained. 

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The Kuala Lumpur shariah courts complex – Bernama pic, August 8, 2024

Zura also said that the August 1, 1958 letter was merely written to try to resolve problems and does not reflect a settlement agreement between parties. 

“Thus the government cannot rely on these letters to say that the plaintiff has agreed to waive irregularities and hence the government can take the land unconditionally.

“As regard to the fact that the plaintiff has accepted the compensation in 1956 it has in no way indicated that they are no longer pursuing their claim.

“As stated by a witness for the plaintiff, and also by the defendant’s sole witness, the compensation was accepted by the plaintiff on protest,” Zura said in her judgment. 

As a result, the court held that the government did not take the 263ac lawfully and it remained in wrongful possession. 

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The Malaysian Institute of Integrity building – Social media pic, August 8, 2024

The government didn’t comply with Zura’s judgment

In 2009, the High Court ruled in favour of Semantan Estate and the federal government proceeded to appeal against the decision at the Court of Appeal and Federal Court where both of its challenges failed. 

Nevertheless, the government failed to comply with Zura’s judgment, prompting Semantan Estate to file another action in 2017 at the Kuala Lumpur High Court against the Federal Territories Land Registrar. 

It was because of this suit that judge Shahir yesterday ordered the government to transfer proprietorship and possession of the land back to Semantan Estate.

However, in a statement yesterday, the Attorney-General’s Chambers (AGC) announced that the government will be challenging the high court’s decision. 

“The AGC acting on behalf of the Federal Territories Land Registrar will file a challenge to the Court of Appeal and request a stay of execution against the high court decision,” the statement said. – August 8, 2024

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