Semantan Estate hearing for 1956 compensation to proceed on Aug 1

KUALA LUMPUR (July 2): The High Court hearing for Semantan Estate (1952) Sdn Bhd's compensation according to the 1956 market rate will proceed on Aug 1 and 14, and Sept 1.

This is despite the company, which had gone under voluntary liquidation, appealing against the High Court’s decision last April over the dismissal of its discovery application over documents related to the 1956 acquisition, which was deemed to have been illegal and a trespass.

Semantan Estate had sought a stay of the Aug 1 proceedings pending its appeal at the Court of Appeal for the discovery application which had been fixed.

Judge Roslan Mat Nor in his decision on Wednesday (July 1) dismissed Semantan Estate’s stay application pending the appeal of the discovery application on grounds the case had been going on since 1956 and required early disposal as directed by the Court of Appeal where the decision was also upheld by the Federal Court last year.

Roslan in his oral decision noted the inherent jurisdiction by the High Court in granting a stay of proceedings and that the hearing dates for compensation had been fixed.

The judge said provisions on the High Court’s jurisdiction are limited based on the Courts of Judicature Act 1964 towards the granting of a stay.

He added that a stay can be given to prevent injustice and at the same time, the court could consider the application as an abuse of the court process.

The court, he said, noted Semantan Estate’s discovery appeal for the documents could support their valuation of the land in 1956 rates, but the federal government had said such documents are not in its possession.

Roslan said the company submitted that if the compensation hearing proceeds, and the appellate bench later decides in its favour on the discovery appeal, the ongoing High Court proceedings may prejudice them.

“The plaintiff said the balance of convenience lies with the plaintiff for the court to grant a stay. The government, which is objecting [to] the stay application, claimed they would be prejudiced should a stay of proceedings in this court be granted as this would prolong the hearing for compensation of the 1956 rate.

“With the prolonging of the hearing, it would result in [higher] payment for compensation and interests[, which are] charged at 6% from 1956...” the judge said.

He also read a passage from the Court of Appeal decision that stipulated the hearing for compensation based on the 1956 rate is to commence within 90 days from the decision, which was made in June last year and required early disposal.

For these reasons, Roslan ruled against granting a stay of proceedings pending Semantan Estate’s appeal to the Court of Appeal. He made no order as to costs.

Earlier, the court heard submissions from counsel Ira Biswas, who appeared with Janet Chai Pei Ying and Alexei Ng Ying Ching for Semantan Estate, while senior federal counsel Nurhafizza Azizan and Azza Azmi appeared for the government.

Long-standing land dispute

The dispute dates back to 70 years ago — 1956, when the pre-Merdeka government acquired 263.27 acres of now prime land in Mukim Batu, Kuala Lumpur, for RM1.32 million.

The land now houses key government facilities, including the National Examination Syndicate, National Archives, Inland Revenue Board headquarters, Malaysian Anti-Corruption Commission Academy, Integrity Institute of Malaysia, the Kuala Lumpur Syariah Court complex, and major roads.

In 2009, the High Court ruled that the government had trespassed on the land. This decision was upheld by the Court of Appeal and the Federal Court in 2012, while a review application by the government was dismissed in 2019.

Following these rulings, Semantan Estate pursued three legal avenues: A mandamus order to compel the return of the land, re-registration of subdivided land titles under the National Land Code, and claims for mesne profits (damages for unlawful occupation).

However, attempts to recover the land and titles were ultimately rejected up to the Federal Court, which ruled that returning the land was impractical due to existing infrastructure and development.

Following this, the Court of Appeal and Federal Court that upheld the appellate court’s decision had directed the inadequate compensation be assessed by Roslan’s court based on the 1956 values, while ongoing mesne profit hearings are still pending before Datuk Ahmad Shahrir Mohd Salleh (now Court of Appeal judge).

The Edge had reported prior to this that Ahmad Shahrir wants the federal government and Semantan Estate to consider mediation before his court decides on mesne profit.

Mesne profit is essentially a form of monetary compensation for wrongful occupancy or trespass of the said land which the courts had ruled earlier since 2009. The government is claiming the sum should be in the region of RM290 million while Semantan Estate's valuation said it should be between RM3.1 billion and RM13.1 billion.

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