Parties in the Duta Enclave conflict recommended negotiating compensation, reportedly in the billions

PUTRAJAYA: The Court of Appeal has directed parties in the dispute over 106 ha (263,272 acres) of land known as the Duta Enclave to file damages, expected to run into billions, to be paid to the injured party must be paid.

A three-member panel led by Court of Appeal Judge Lee Swee Seng gave the direction on Thursday (Nov 7) after hearing lengthy submissions from lawyers representing Semantan Estate (1952) Sdn Bhd and senior federal counsel representing the Representing Federal Territory of Kuala Lumpur Country. Registrar.

Others on the bench were Court of Appeal Judge Azimah Omar and High Court Judge Wan Ahmad Farid Wan Salleh.

The panel asked the parties to indicate whether the calculation of compensation should be based on the current market value or at the time the land was acquired, i.e. 1956.

When the issue of compensation was raised in open court, a man sitting in the public gallery, believed to be a representative of the trustee of Semantan Estate, told the court that the current market price for the land was RM12 billion.

“The government has proposed RM5 billion (as compensation), but the current market value is RM12 billion,” he said.

The appeal court then set February 20 for further hearing of the appeal.

Before adjourning the case, Judge Lee told the parties that negotiations were the way forward.

“That’s actually for the best,” he said.

During Thursday’s proceedings, the panel heard submissions on a government appeal against the Kuala Lumpur High Court’s decision allowing a summons by Semantan Estate against the land registry.

On August 7, Judge Ahmad Shahrir Mohd Salleh ordered the government to transfer the land to Semantan Estate after granting the company’s original summons.

The court also ordered the land registry to comply with the required conditions within three months and ordered the government to pay RM50,000 in costs.

However, the same court also granted a postponement of the execution of the transfer of ownership on September 12, pending an appeal filed by the government.

Meanwhile, Semantan Estate appealed a decision by the Kuala Lumpur High Court on October 27, 2021, dismissing the judicial review in a bid to gain possession of the Duta Enclave land.

The company also appealed for execution of the transfer of ownership as per the directions of the Supreme 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 resulting from illegal acquisition of the land.

In 2009, Judicial Commissioner Zura Yahya ruled that Semantan Estate had retained its economic interest in the 106 hectares of land, declaring the government’s actions a violation.

The government subsequently appealed, but was struck out on May 18, 2012. The Federal Court rejected the government’s application to appeal on November 21, 2012, and again rejected the review of the earlier decision in 2018.

In February 2017, Semantan Estate initiated legal proceedings against the Federal Territory Land Registrar to enforce the 2009 Supreme Court judgment.