Sime Darby Property’s RM78.6 mil compensation overturned by court

KUALA LUMPUR (July 13): Sime Darby Property Bhd (KL:SIMEPROP) lost its case for additional compensation from the government’s acquisition of its land for the West Coast Expressway project.

The Shah Alam High Court sided with the Malaysian Highway Authority and set aside the RM78.6 million in severance and injurious affection awarded to its wholly-owned unit Sime Darby Property (Klang) Sdn Bhd, according to a bourse filing on Monday. The grounds of judgement have yet to be issued.

“The company is assessing the High Court decision, including its available legal options,” as well as the financial impact of the ruling, Sime Darby Property said.

The case involved compensation arising from the compulsory acquisition of seven plots of land measuring 504,101 sq m for the West Coast Expressway project.

In 2015, the Klang district land administrator awarded total compensation of RM169.3 million for the acquisition, comprising RM90.7 million for the market value of the land and RM78.6 million for severance and injurious affection.

Severance and injurious affection compensation refers to losses suffered by landowners when the acquisition of part of their land affects the value or usability of the remaining land.

However, the Malaysian Highway Authority, also known by its Malay acronym LLM, filed its objection to the RM78.6 million injurious affection award with the High Court on Aug 6, 2015. The case went through proceedings and appeals, and was re-heard on March 10-11 this year.

Following the decision last Friday, the court will now determine consequential matters, including costs to be paid, on July 20.

“At this stage of litigation, it is not expected to have any material operational impact on the group,” Sime Darby Property said.

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!