Procedural non-compliance does not negate jurisdiction unless it results in substantial injustice; a plaintiff aware of proceedings but failing to participate may not later challenge the outcome.

Headnote:(A) Land Acquisition Act 1960 - Section 38 - Breach of statutory duty - Plaintiff challenged Court’s award for compensation for land acquisition, citing lack of jurisdiction and non-service of notice - Court upheld the validity of the award, finding no breach of duty or process. (Paras 11, 45)

(B) Procedural Requirements - Time limits for filing - Court determined that non-compliance with s 38(5) of the LAA does not negate jurisdiction, and procedural lapses do not invalidate valid proceedings unless they cause substantial injustice. (Paras 17, 21, 49)

(C) Abuse of Process - Tort claim by 1st defendant successful on grounds that plaintiff's action was initiated solely to circumvent prior rulings concerning compensation. (Paras 51, 54)

Facts of the case:
Plaintiff entered a concession agreement with the government for a highway project; land was acquired by the government, and subsequent compensation disputes arose involving the 1st and 2nd defendants, whom the plaintiff sought to challenge in court. (Paras 2-5)

Findings of Court:
The Court found no jurisdictional breaches; plaintiff was aware of proceedings yet failed to engage appropriately. Plaintiff's claims were dismissed, and the 1st defendant’s counterclaim for abuse of process was allowed. (Paras 49, 54)

Issues: Whether plaintiff was barred from challenging the Court’s award under s 68 of the LAA and whether procedural non-compliance affected jurisdiction. (Paras 11, 17)

Ratio Decidendi: The Court ruled that the procedural requirements in s 38(5) are directory; failure to comply does not invalidate proceedings unless it results in substantial prejudice. The plaintiff's failure to act upon awareness of proceedings was a critical factor. (Paras 17, 21, 49)

Result: Plaintiff's claim dismissed; 1st defendant's counterclaim allowed with costs.

[1] The facts of the case have been well summarised by counsel for the 1st and 2nd defendants in their written submissions and I have adopted them in extenso here.

[2] The plaintiff entered into a concession agreement dated 16 May 1996 with the Government of Malaysia to build, operate and transfer the Ulu Kelang/Ampang-Kuala Lumpur Elevated Highway (AKLEH). The relevant terms of the concession agreement include:

(i) the plaintiff would design, construct, manage and maintain AKLEH;

(ii) the plaintiff was to identify the lands needed for the construction and the government was to make the lands available through acquisition;

(iii) all costs, expenses and charges incurred for the acquisition were to be borne by the plaintiff; and

(iv) the Government of Malaysia would pay up to RM70 million on the plaintiff's behalf for the land costs which the plaintiff would reimburse later.

[3] Two tracts of land belonging to the 1st defendant identified as Lots 39 (Lot Baru 50) and 38 Section 45, Jalan Ampang, Bandar Kuala Lumpur held under Grant NO 27733 and 27736 respectively were compulsorily acquired by the Government of Malaysia for the AKLEH project through the 2nd defendant for the benefit of Lembaga Lebuhraya Malaysia (LLM), the authority entrusted to monitor the works and administration of highways in Malaysia.

[4] The chronology of events pertaining to the land acquisition is as follows:

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2012 MarsdenLR 516

HIGH COURT MALAYA KUALA LUMPURPROJEK LINTASAN KOTA SDN BHD – AppellantVersusWISMA DENMARK SDN BHD & ANOR – Respondent[Civil Suit No: 21NCVC-98-2011]

Procedural non-compliance does not negate jurisdiction unless it results in substantial injustice; a plaintiff aware of proceedings but failing to participate may not later challenge the outcome.

HIGH COURT MALAYA KUALA LUMPUR
PROJEK LINTASAN KOTA SDN BHD – Appellant
Versus
WISMA DENMARK SDN BHD & ANOR – Respondent
[Civil Suit No: 21NCVC-98-2011]