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2025 MarsdenLR 4169
HIGH COURT MALAYA KUALA LUMPUR
MAH CHIN BOOI – Appellant
Versus
PENTADBIR TANAH WILAYAH PERSEKUTUAN KUALA LUMPUR (ENCLS 8 25 32 33 38 40 42 .... – Respondent
[Land Reference No: WA-15-1-01/2023]
Flat owners are entitled to compensation that includes both their flat value and their proportional share of common property, adhering to the 'Principle of Equivalence' for fair compensation as established in relevant statutes.
Headnote:(A) Land Acquisition Act 1960 - Sections 3(1)(c), 8, 36(4), 48, 51, and 57 - Federal Constitution - Article 13 - Adequate compensation - The applicant is entitled to compensation for both flat value and share of common property when the entire land, including common areas, is acquired - Compensation awarded was insufficient as it did not account for common property value - Economic loss doctrine upheld as per 'Principle of Equivalence', ensuring fair and reasonable compensation through established valuation methods - Late payment charges awarded as per statutory provisions. (Paras 1, 60, 64, 103, 153)
(B) Compensation assessment - Methodologies to determine compensation including market, cost, and equity approach - Adherence to statutory mandates essential for adequate redress (Paras 27, 31, 56, 109-120)
Facts of the case:
The applicant contested a Land Administrator compensation award derived solely from his flat's valuation, neglecting his entitlement to the common property's value, which comprises 84.5% of the land. The compensation deemed inadequate, sparking appeals based on fair value considerations and legal precedents. (Paras 16, 51, 80)
Findings of Court:
The applicant to receive additional compensation of RM235,135.26, reflecting fair share in common property alongside flat valuation, with stipulated late payment fees. The Land Administrator's prior calculation was not validated against established legal principles ensuring rightful compensation (Paras 150, 151)
Issues: 1. Whether compensation includes the share of common property in addition to flat value. 2. If affirmative, the methodology for valuing the common property share. (Paras 1, 4)
Ratio Decidendi: The court confirmed that flat owners must be compensated for both the flat and common property share, reinforcing the economic principle of equivalence in land acquisitions. The court rejected arguments for 'double counting', asserting separate valuation for distinct properties is justified by legal and practical precedents. (Paras 69, 80, 134)
Result: Applicant entitled to additional compensation of RM235,135.26 with late payment charge and forfeiture of costs claim due to overestimation. (Paras 151, 154)
| Table of Content |
|---|
| 1. compensation includes common property value (Para 1 , 2 , 5) |
| 2. description of the scheduled land (Para 8 , 11 , 12 , 13 , 14) |
| 3. contention for full compensation (Para 51 , 52 , 54) |
| 4. land administrator's assessment of value (Para 56 , 92) |
| 5. principle of equivalence in compensation (Para 66 , 93) |
| 6. assessment of additional compensation (Para 130 , 135) |
| 7. final decision on compensation and costs (Para 150 , 151 , 152 , 153) |
[Objection Against Quantum Of Compensation Awarded By The Land Administrator]
Issues
[1] The main issue before me is whether the applicant in the Land Reference before me is entitled to compensation based solely on his flat or whether his compensation includes his share of the value of the common property when the entire land - where the block of flats sits- is acquired including the common property.
[2] This issue has a significant financial impact on the flat owners' compensation and the acquiring body as:
i. The Government assessor has valued the common property comprising the hall and the carpark lots at RM6,343,957.50. [See report dated 17 February 2025 at p 9]; and
ii. The Government assessor has also valued the common property comprising the unused land at RM12,967,850.00. [See report dated 17 February 2025 at p 10].
[3] As I see it, the real sting of the applicant's contention is that if the flat owners are only compensated for the value of their respective flats it would mean the acquirer/developer ultimately developing the Scheduled Land will obtain a windfall gain, a durian runtuh to use an apt Malay peribahasa, as the acquirer/developer would get for free the common property which constitutes 84.5% of the Scheduled Land.
[4] If the answer to the issue is affirmative, the secondary issue is how does one value the applicant's share of the common property.
[5] Counsel have informed me there are no reported cases on the above issues.
Written Submissions Filed
[6] For the hearing before me, parties filed the following Written Submissions:
i. Applicant's Written Submission dated 20 March 2024 [Enclosure 40/42]
ii. Respondent's Written Submission dated 19 March 2024 [Enclosure 38].
iii. Applicant's Supplementary Written Submission dated 17 May 2024 [Enclosure 47].
iv. Respondent's Written Submission in Reply dated 2 May 2024 [Enclosure 44].
v. Applicant's Written Submission dated 24 March 2025 [Enclosure 63].
vi. Respondent's Written Submission dated 7 April 2025 [Enclosure 64].
vii. Applicant's Written Submission in Reply dated 9 April 2025 [Enclosure 65].
viii. Applicant's Written Submission dated 22 July 2025 [Enclosure 76].
ix. Respondent's Written Submission dated 28 July 2025 [Enclosure 77].
Valuers' Reports Filed
[7] Parties also filed the following Valuers' Reports:
i. Applicant's Valuers Report [Enclosure 25].
ii. Respondent's Valuers Report [Enclosure 8].
iii. Applicant's Valuers Reply Report [Enclosure 32].
iv. Respondent's Valuers Reply Report [Enclosure 33].
v. Applicant's Valuers Additional Report [Enclosure 50].
vi. Respondent's Valuers Additional Report [Enclosure 53].
Material Facts
Scheduled Land
[8] A piece of land was acquired pursuant to s 3(1)(c) of the Land Acquisition Act 1960 (" LAA 1960"). This piece of land which is acquired under the 1960 is called "Scheduled Land" pursuant to s 8 read with s 2 of the 1960.
[9] On the Scheduled Land sits a block of low-costs walk-up flats comprising 80 units, open-air carpark bays and vacant land. This block of flats is called The Taman Rajawali Flats. A picture of the flats and vacant land can be seen in encl 8 Government Valuation Report dated 25 July 2022 at p 8.
[10] Hwa-Li Development Sdn Bhd is the registered owner of the Scheduled Land. However, the Sale and Purchase Agreements with Hwa-Li Development Sdn Bhd explicitly designate all areas of the Scheduled Land, excluding individual parcels owned by the parcel owners, as common property of the Scheduled Land.
[See definition of common property in art 1 of the Sale and Purchas
